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 andSUN]

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

Excise Duty Exemption for Gear Suppliers: Follow Notification No. 43/2001-CE (NT) or Use CT-1 Form for Relief A gear manufacturer inquires about excise duty exemptions for supplying gears to a vehicle manufacturer who exports the vehicles. The first response advises that the vehicle manufacturer must follow procedures under Notification No. 43/2001-CE (NT) to enable duty-free supply of gears. Alternatively, duty must be paid, with potential for credit or rebate claims. Another response suggests obtaining a CT-1 form for excise duty relief, correcting an earlier mention of CT-3. The discussion focuses on compliance with excise regulations for export-related transactions.