EXCISE DUTY

[SANTHANA KRISHNAN]

SIR

SAY, I AM A GEAR MANUFACTURER AND MY GEARS ARE SUPPLIED TO A VEHICLE MANUFACTURER WHO IN TURN EXPORTS HIS VEHICLE. AS A GEAR MANUFACTURER, AM I ELIGIBLE TO SOURCE MY INPUTS WITHOUT EXCISE DUTY (SINCE MY GEARS ARE GETTING EXPORTED ULTIMATELY)? ARE THERE ANY EXEMPTION RULES?

PL GUIDE ME

REGARDS

JR

[Rajagopalan Ranganathan]

Dear Shri.Jayaraman Ramamuthy,

Your Customer who is exporting the motor vehicles has to follow the procedure prescribed in Notification No. 43/2001-CE (NT) dated 26.6.2001. Then you can supply the gears without payment of duty to your customer. Otherwise, you have to pay duty on the gears when you clear the same from your factory and your customer can take credit of duty paid by you and can claim refund of the credit under rule 5 of Cenvat Credit Rules, 2004 or he can pay duty on the motor vehicles exported by him and claim rebate of such duty paid under rule 18 of Central Excise rules, 2002.

[MUKUND THAKKAR]

Dear,

Ask your customer to provide you CT-3, you will get it relief from excise duty. ultimate product will be exported,

Mukund Thakkar

[YAGAY and SUN]

CT-1 or CT-3 ??

[MUKUND THAKKAR]

Dear

please read CT-1 i/o CT-3.

Thnx for correction, Pradeep sir,

Mukund Thakkar

AI Summary

Exemption for inputs to exported goods when exporter complies with prescribed export procedure, enabling duty relief.
A supplier of inputs for goods ultimately exported can supply without payment of excise duty if the purchaser (exporter) follows the prescribed export procedure and provides the necessary export documentation; otherwise the supplier must pay duty and the exporter may claim Cenvat credit and refund or claim rebate under the Central Excise rules. Obtaining appropriate transit/certificate forms from the exporter (CT-1/CT-3) is the practical compliance measure noted.