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.

AI Summary

Manufacturing Unit Seeks Excise Duty & VAT Refund on Raw Materials; Considers Cenvat Credit for Future Sales. A small-scale manufacturing unit inquired about the eligibility for a refund of excise duty and VAT on raw materials purchased domestically. The unit sells finished goods, such as drilling machinery, to exporters under schemes like 100% EOU and EPCG, without engaging in local sales yet. They lack excise registration and sought guidance on obtaining refunds. The response highlighted Rule 19(2), allowing procurement of inputs without excise duty for export manufacturing, and Rule 18, which provides for a rebate on duty-paid inputs used in exported products. The unit also considered utilizing Cenvat credit for future local sales.