Excise in Export of goods

[Guest]

We are in business of setting up new rice mill turnkey projects, as being an agro-processing industry we are exempted from excise. we have taken a new project to setup a complete rice mill in Africa. for that we are buying and export Iron, steel and stainless steel which will be fabricated there to build a Platform structure. while buying these material we have to pay excise to supplier. but we are exporting it. so Do we get that excise refunded? if yes how?

[MUKUND THAKKAR]

Dear,

you  are not manufacturing  any thing in India , you are just sending only inputs as merchant exporter  In such case you have  to obtain CT-1 option to get relief from excise duty.

 

AI Summary

Excise relief for exported inputs requires exercising the CT-1 option when acting as a merchant exporter. Where inputs are exported for overseas fabrication and no manufacture occurs in India, the supplier functions as a merchant exporter and cannot claim manufacture-based excise exemption; relief from excise duty on such exported inputs is available only by exercising the CT-1 option under the excise procedure to treat the export as eligible for duty relief.