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Tax implementation in excise finished goods given-export

EXICSE (Legacy) 487 views 3 replies

Dear Experts,

This is Sheetal here, I need your advice in below mentioned subject matter:

Our Company is purchasing raw materials from supplier and giving it to Contract Manufacture for finished goods. The finished goods recieved from Contract Manufacturer is for export. The Goods is exciseable goods. And on Export duty drawback is 2.5%.. Goods is chemical product.. DTY..Kindly help me with your advice on taxation and procedure involved in this. Awaiting your reply.

Thanks in advance.

Sheetal T

 

 

 

Replies (3)
Mrs.sheetal, the levy of excise duty on goods which are manufactured in india and expected to be sold in India. here goods are manufactured for the purpose of export, hence excise duty will not be levied. Cenvat credit can only be taken in case of payment of excise duty. If an assesse is using excisable goods as inputs and excise duty was paid on purchase of these and finished goods is exported. Then refund of excise duty can be claimed from CBEC.
Mrs.sheetal, the levy of excise duty on goods which are manufactured in india and expected to be sold in India. here goods are manufactured for the purpose of export, hence excise duty will not be levied. Cenvat credit can only be taken in case of payment of excise duty. If an assesse is using excisable goods as inputs and excise duty was paid on purchase of these and finished goods is exported. Then refund of excise duty can be claimed from CBEC.

Dear Mr.Sharma,

Thanks for your reply. I want to elaborate the question in more details. We "A" Co. [Maharashtra) is a trader and "B' is manufacturer , "C" is raw materical supplier. The situation of movement of goods are as follows :

1 . A will gove order to "C" for raw material purchase -Gujarat and ask delivery directly to 'B" -Gujarat .Goods are excisable goods.

2." C "will charge excise duty on raw material. we will passon the same to our Cotract manufacturer- "B'.

3.B will further process raw material and give us goods for export.

In the above case what are the options available from excise taxation point of view. please give us detailed idea to claim refund or rebate or export on Exices bond without duty.  How will be the procedure.

Thanks in advance.

 


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