Refund of excise duty against exports

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Hello, I'm starting a new business wherein I shall be buying commercial vehicles from domestic manufacturers and exporting them after necessary modifications. The local manufacturers shall be charging me Excise + VAT + other taxes i.e ex-showroom prices as I shall be exporting them.

My question is: As my goods are being exported, can I get refund of VAT, Excise and other taxes paid locally?

Replies (5)

On the principle that goods should be exported not the taxes, you are entitled for refund of taxes/excise duty paid by you. If the process undertaken by you is amount to manufacture, you can take cenvat and pay excise duty from the cenvat balance, and claim the rebate of excise against the export of goods.

Raksh*t Verma 08800615751

please discuss the issue with your juridicational technical superintendent, as the vehicles are not allowed for cenvat credit, 

however you can follow procedure of ARE-1/2 for taking delivery of vehicles from plant direct without payment of duty.

Mr. Sharma, I'm not going to be manufacturing any vehicles, per se. All I'll be doing is buying the vehicle from the plant itself by paying excise, VAT i.e local taxes and fitting them with kits for export.

So I don't think fitting them with kits would be convered under Excise, would it?

refund is granted to exporter only if the procedure of ARE-1 is maintained from the manufacturing plant, in absence of such procedure maintained, you can claim DEPB but not the refund of duty, for more details get in touch with your customs clearing house agent about the DEPB norms and rate.

DEPB scheme is no longer valid; it was discontinued on 30th September 2011. I shall inform my CA to follow ARE-1 to claim CENVAT refund. Thank you for all the information.

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