SSI UNIT NEED TO GENERATE BOND FOR EXPORT AT NEPAL

[Mehul Pandya]

Sir,

My query is our is a SSI unit having our turnover under the exemption limit i.e. 1.5 CR. Now we required to export our material to Nepal without payment of duty. So can we export the same without giving any bond. Because its Assessable Value will be included in 1.5Cr. Exemption. as per SSI Notification.

[Arun Kumar Singh]

The export goods will not be clubbed for the purpose of SSI exemption.

[PAWAN KUMAR]

Dear Sir,

As per my view, You are working under SSI. The goods which you are planning for export to Nepal is excisable goods. The notification No.45/2001-C.E.(N.T.) Dated 26.06.2001(amended) export of goods to Nepal under Bond which specified some procedure for export. The subject procedure required execution of bond if goods are exported without payment of duty to Nepal. Therefore bond is to be executed. The value of these export shall be include in the value determining 1.5 Crore exemption as the exported goods are not exempted goods.

[Rajagopalan Ranganathan]

Dear Shri. Pandya,

Please see Part III of Chapter 7 of CBEC manual of instructions for detailed procedure to be followed in respect of export by exempted unit. Since the volume of the procedure is huge I am not able to copy and paste the same here. This can be accessed in tmi web site itself.

[Mehul Pandya]

Sir, I got below reference and on the basis of the same I do not required to get bond from the authority vide Notification No. No.42/2001-CE (NT) Dated 26/06/2001 read with notification no. 26/2011 CE(NT) dated 05/12/2011 w.e.f. 1.3.2011 and Circular No. 928/18/2010 - CX Dtd. 28.06.2010.

Thank you

AI Summary

Bond requirement for duty-free export to Nepal may apply and can affect SSI exemption turnover calculation.
The issue is whether duty-free exports to Nepal require execution of a bond and whether the assessable value of such exports counts toward the SSI exemption ceiling. One view cited a notification-based export procedure requiring a bond for duty-free export and treating exported goods as includible in the value used to determine the SSI exemption; another view stated such exports are not clubbed for exemption calculation. References to central excise notifications, a circular, and procedural manual guidance are noted.