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

Manufacturing unit can clear unused materials for export without excise duty using CT-1 and Form H, following procedures. A manufacturing unit wants to clear unused raw materials to a merchant exporter without paying excise duty. They inquire if this is possible using CT 1 and Form H. An expert confirms that inputs with availed credit can be cleared for export without excise duty, provided details are included in the Excise Invoice. Another expert advises following prescribed procedures under Central Excise and CST Laws for removal of raw materials using CT-1 and Form H. The original inquirer expresses gratitude for the guidance received.