TaxTMI 
TaxTMI 
1. Company A is a manufacturer paying excise duty on final product. 2. Company B is a trader/ service provider 3. Agreement entered into between Company A & B: a) Company A will sell final product to Company B b) Company B will export the product Query: - Is any exemption for excise duty leviable on final product available to Company A or Company B?
export related
24 Jan 2016 
6 Replies 
1752 Views Asked by
Export exemption for excisable goods: merchant procurement under CT-1 or ARE-1/bond with mandatory proof of export.
Exemption from excise duty is available where a merchant exporter procures excisable goods on CT-1, permitting clearance without working capital blockage, subject to proof of export. Alternatively, exporter may use ARE-1 with the manufacturer debiting duty to bond and re-crediting on proof, or manufacturer may debit CENVAT and seek rebate. Duty drawback remains an available mechanism for exported duty-paid goods, and a no-objection certificate and naming of the manufacturer on the shipping bill allow either party to claim drawback; proof of export is mandatory. (AI Summary)
Exemption from excise duty is available where a merchant exporter procures excisable goods on CT-1, permitting clearance without working capital blockage, subject to proof of export. Alternatively, exporter may use ARE-1 with the manufacturer debiting duty to bond and re-crediting on proof, or manufacturer may debit CENVAT and seek rebate. Duty drawback remains an available mechanism for exported duty-paid goods, and a no-objection certificate and naming of the manufacturer on the shipping bill allow either party to claim drawback; proof of export is mandatory. (AI Summary)