Export to Merchant Exporter

[Rudrayani Shedjale]

Hi

Regularly we export under UT-1 i.e.Letter of undertaking

in some transactions, we sell the goods to Merchant Exporter without charging excise & vat.They provide us CT-1,A.R.E.1 & (H form later)

so for us it direct export only or what?

Now when we are claiming for cenvat credit refund under Rule 5, we showed it as our export only.

But excise authorities are disallowing that by saying you dont have the proof of export

for such transaction.

I have received the H form & Airway bill from the Merchant Exporter.

isn't it enough to claim as our export?

please guide ASAP.

AI Summary

CENVAT refund eligibility requires a shipping bill endorsed with the manufacturer as supporting manufacturer and ARE 1 evidence.
Clearances to a merchant exporter are treated as Third Party Export; to claim CENVAT refund under Rule 5 the manufacturer must submit export evidence including the EP copy of the shipping bill endorsed with the manufacturer's name as supporting manufacturer, ARE-1 with customs endorsement, and bill of lading or airway bill. Refund claims may be disallowed if shipping bill endorsement is absent or if drawback/rebate has been claimed for the same duty elements; LUT is used when CENVAT balance is insufficient while payment from CENVAT and rebate may be preferable when credit is available.