Removal of Goods at concessional Rate of Duty

[NANDA H.L.]

Sir/MadamOur customer executed the bond vide Notification No.43/2001 of Central Excise(NT) dt. 26th June 2001. Issued Annexure 45. We need to remove the goods at Excise duty at NIL. My query, 1. Is this similiar to CT-3 procudure? Goods to be moved against ARE3?2.We need take permission from our Range? OR only we need to intimate?3. Are we eligible to take credit on my inputsand Capital GoodsPlease Suggest

[Rajagopalan Ranganathan]

Sir

Please see the Part Vi of Chapter 7 of CBEC's Central Excise Manual,2005 for detailed procedure for your purpose. This manual is available on line in the following web site of CBEC-www.cbec.gov.in.

Regarding availment of CENVAT credit excisable goods cleared wuthout payment of duty under Notification No. 43/2001 is mentioned under rule 6 (6) of Cenvat Credit Rules, 2004. Therefore if the excisable goods are cleared without payment of duty under the above mentioned Notification you have reverse the credit availed on the inputs contained in such excisable goods.

[Mahir S]

The answers to your query are as under :-

1) Yes

2) Yes

3) Intimation. However, the consignor shall send quadruplicate copy of the application to the Superintendent-in-charge of his factory or warehouse within twenty-four hours of removal of the consignment.

4) Yes.

AI Summary

CENVAT credit reversal on concessional duty removals requires ARE 3 movement and prompt statutory intimation. Movement of excisable goods under the concessional notification is to be carried against ARE 3 following CT 3 procedure, with the consignor required to intimate the range and send a quadruplicate application copy to the Superintendent within twenty four hours. CENVAT credit claimed on inputs and capital goods used in such goods must be reversed in accordance with the Cenvat Credit rules when goods are cleared without payment of duty.