Refund of Excise Duty

[Raja krishnan]

Dear Experts,

We are coming under the SSI manufacturing unit, we are purchasing our raw materials with in India along with Excise duty & VAT and we are sales our finished goods (Drilling Machinery) to exporters like 100% EOU & other exporters who's are coming under the EPCG scheme. now we are not doing any local sales but planning.

Please be noted we are not having Excise registration position if we are eligible to obtain the refund our Excise duty & VAT which are collected from us by the way of purchase? if yes which way (or) from where we will collect the same (i) MEPZ (or) (ii) DGFT and as well as in future we will enter the local sales if we utilize the Cenvat credit? I request you to that reply briefly along with suitable Notification if any.

[Arun Kumar Singh]

Rule 19(2) provides that inputs to be used for manufacture of final product to be exported can be obtained without payment of excise duty. Rule 18 makes provision for granting rebate of duty paid input which are sued in manufacture of final product which is exported.

AI Summary

Inputs for export: duty-free procurement or rebate under excise rules enables relief for manufacturers supplying exporters. Rule 19(2) permits inputs for manufacture of goods for export to be obtained without payment of excise duty; alternatively Rule 18 allows rebate of excise duty paid on inputs used in exported final products, which are the operative mechanisms for excise relief for a small-scale manufacturer supplying exporters.