Clearance of Raw Material as such to Merchant Exporter

[Subrata Chakraborty]

Dear Experts,

We are an R and D based manufacturing unit. Periodically raw materials components use to change. Because of this some, raw materials are not being used for a long time. We want to clear these as such. We have got a customer who is a Merchant Exporter and wants to purchase these against CT 1 and and Form H for further export. Can we clear these against CT 1 without excise duty?

[Mahir S]

Yes, Inputs on which credit is availed can be cleared for export without payment of duty. You can remove such raw materials against CT - 1 without payment of excise duty.

Mention the details in the Excise Invoice issued for such clearances.

[YAGAY andSUN]

Dear Subrata,

You can remove the Raw Material against CT-1 and Form H, after following the prescribed procedures as mentioned in the Central Excise and CST Laws.

Regards,

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Subrata Chakraborty]

Thanks

AI Summary

Duty-free clearance of inputs permitted where input credit is availed, using CT-1 and Form H, subject to procedures. Inputs on which excise credit has been availed may be cleared to a merchant exporter for export without payment of excise duty if removed against CT 1 and Form H, subject to prescribed Central Excise and CST procedures and recording the required particulars in the excise invoice.