Whether ED payable on FG meant for Exports missed during transit?

[R MUTHURAJ]

Dear Sir,

During transit from our factory to the Courier through an auto, 1 box of FG (meant for Export with all proper documents like Export Invoice, ARE-1 etc., ) has been missed out of 9 boxes and the export has been held for a while on a particular day. Later on, the exports on the next day  with the same Export invoice and ARE-1 documents.

We have tried to find the missed 1 box in between and could not traceable.

What are the implications involved in respect of the Central Excise & VAT/CST.

1. Whether ED is payable on the goods found to be missing or

Cenvat credit taken in respect of the FG has to be reversed?

2. whether any information to be given to the Range officer in this regard?

Kindly give your views / opinion in this issue.

Thanks in advance and regard,

R.Muthuraj

[YAGAY andSUN]

Intimation for short shipment to customs authorities and Central Excise Department must be given.

Excise Duty will be payable and no export promotion scheme's benefit will be allowable to you.

VAT/CST will be payable at applicable rate.

AI Summary

Missing Export Goods: Excise Duty & VAT Payable, Notify Customs; No Export Promotion Benefits. Reverse Cenvat Credit Unnecessary. A user inquired about the implications of a missing box of finished goods intended for export, which disappeared during transit. The goods had all necessary export documentation. The user asked if Excise Duty (ED) is payable on the missing goods and whether Cenvat credit should be reversed. Additionally, they sought guidance on informing the Range officer. The response advised notifying customs authorities and the Central Excise Department about the short shipment. It was stated that Excise Duty would be payable, and no benefits from export promotion schemes would apply. VAT/CST would also be payable at the applicable rate.