Export of Rejection Import material

[Asked by Guest]

Dear Sir,

We are a manufacturer and we import some RM in our factory in 2012 and we taken the Cenvat Credit on that material. We use these material in manufacture of FG and sell in market after some period we face customer coplain on this product then we testing this product and found that the import material has some defect by which we face the customer complain in market we discuss the import supplier and he also agree that there is some faulty in his product. So now in 2016 we we want to send these balance material which are not using still now.

Please guide how we will send this material to this supplier. on which document we should send.

By paid of excise duty of through ARE-1.

Because as our import is before 4 years re export of import material is not applicable.

So please advise me.

Regards

Swapneswar Muduli

AI Summary

Export under bond/LUT allows removal of defective imported inputs without payment of excise duty, subject to identity proof.
A manufacturer who took Cenvat credit on imported inputs may remove defective imported inputs for export under bond or LUT without payment of excise duty; Cenvat credit need not be reversed if inputs are exported as such. Export from factory premises should be effected under ARE-1 for excise-registered manufacturers to avoid allegations of improper removal. Drawback under Customs is a separate remedy subject to its time limits and proof of identity; officials will scrutinise identity and reasons for long non use, and RBI exemption may be sought for realization requirements.