Excise Duty Refund

[Raja krishnan]

Dear Sir,

A' is coming under the SSI status manufacturing unit, they are purchasing their raw materials from 'B' along with Excise duty & VAT used for Drilling Machinery manufacturing.

'A' sales the aforesaid Machinery only to 100% EOU & other exporters who's are coming under the EPCG scheme. now 'A' is not doing any local sales but planning in future.

My Doubt is :

'A' is having Excise registration, now, is 'A' eligible for refund of Excise duty & VAT which are collected from 'B' by the way of raw materials purchase. if 'A' is eligible for refund, from where 'A' will collect that accumulate excise duty, from DGFT (or) local Excise?

I request you to that reply briefly along with suitable Notification if any.

Yours truly,

k.Raja

[Mahir S]

Sir,

For answer to all your queries, please refer Notification No. 21/2004 CE (N.T.) dated 06.09.2004 and Rule 18 of Central Excise Rules 2002.

[KASTURI SETHI]

Dear Raja Krishnan Ji,

In the situation explained by you, I am of the view that your rebate claim under Rule 18 of Central Excise Rules, 2002 or refund claim for credit of duty paid on the inputs under Rule 5 of Cenvat Credit Rules,2004 would be hit by Notification Nos.8/15-CE(NT) dated 1.3.15 and 6/15-CE(NT) dated 1.3.15 respectively due to change in in definition of the term, "Export Goods" w.e.f. 1.3.2015. Kindly read between the lines and ask further, if required.

 

[YAGAY andSUN]

Dear K Raja,

We endorse the view of 'Kasturi Sir' in this matter.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

By Quoting rule 18 above in my earlier reply dated 24.11.2015, the aspect of notification no 08/2015 CE NT has already been incorporated/covered therein, as rule 18 is itself based on the said notification.

Other replies on the said query were provided thereafter and that too after studying rule 18 quoted in my earlier reply (under which reference to notification no. 08/2015 CE NT has already been discussed in the said rule) 18) , which therefore means that the impact of the said notification was already covered in my earlier dated 24.11.2015 reply quoted above.

Therefore, same things were being repeated in a different way.

 

[KASTURI SETHI]

M/s.YAGAY and SUN,

Dear Sirs,

Yours observations dated 28.11.2015 are really a source of inspiration for me. Thanks a tonne.

KASTURI LAL SETHI

AI Summary

Excise duty refund eligibility hinges on export-linked rebate and Cenvat credit rules after changes to the export definition. Eligibility for refund of excise duty and VAT on inputs purchased by an SSI manufacturer who supplies only to export recipients depends on the rebate mechanism under Rule 18 of the Central Excise Rules and the refund/credit rules under the Cenvat framework; notifications that amend the definition of Export Goods modify entitlement and may affect both rebate claims and Cenvat credit refund claims, requiring assessment of export-linked eligibility and procedural compliance.