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

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.