TaxTMI 
TaxTMI 
Whether goods received by taking credit under rule 16 can be exported without payment of duty under rule 19? Pls provide citations of case laws if any.
Export without payment of duty
16 Sep 2015 
2 Replies 
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Export without duty: goods received under Rule 16 may be exported without payment of duty or reversal of CENVAT credit.
Goods received under Rule 16 are eligible for CENVAT credit when brought back into factory and, unless the process does not amount to manufacture (in which case equivalent credit must be paid), duty on later removal is payable at the applicable rate; exports under Rule 19 are generally duty-free and such Rule 16 receipts may be exported without payment of duty or reversal of equivalent CENVAT credit. (AI Summary)
Goods received under Rule 16 are eligible for CENVAT credit when brought back into factory and, unless the process does not amount to manufacture (in which case equivalent credit must be paid), duty on later removal is payable at the applicable rate; exports under Rule 19 are generally duty-free and such Rule 16 receipts may be exported without payment of duty or reversal of equivalent CENVAT credit. (AI Summary)