Central Excise query

[Guest]

How can I, being a trader, take advantage of excise duty exemption, if I purchase an excisable commodity from a manufacturer and sell it to an exporter? Thanks.

[Ganeshan Kalyani]

You can pass on the credit of duty as a trader.

[Guest]

Thank you for kind response, sir.

But incase, an exporter directly purchases from the manufacturer, he can give form CT-1 to the manufacturer, and thus get exemption from bearing excise. Consequently, becoming competitive. So, how will things pan out when a trader is involved and the exporter wishes to have excise exempted?

[Suryanarayana Sathineni]

Dear Friend,

This issue was answered/clarified earlier in the same forum ( you may pl. refer the same)

However, considering that you are a Registered Dealer(Trader) under central Excise, You may claim the duty paid by the manufacturer on your export in terms of the procedure prescribed under CBEC circular No. 294/97-CX Dated 25.01.1997

Best Regards

Suryanarayana

[Guest]

Sir, Thank you for your kind response. I'm a bit confused, so let me put it in a different way: Consider an exporter(E) who wishes to export an excisable commodity from a middleman/trader/dealer, who in turn purchases the same commodity from the manufacturer(M). Now, E wishes to seek an exemption from payment of excise duty for the export he wants to carry out. Under what circumstances can he claim an exemption?

[Suryanarayana Sathineni]

Dear Friend,

According to me there is no provision for getting exemption from duty to E.

Best Regards

Suryanarayana

[Rajagopalan Ranganathan]

Sir,

From your query I understand that you are pruchasing duty paid excisable goods from manufacturer and sell it to an Exporter. You want to know whether you can purchase the excisable goods without payment of duty. The answer is no since there is no such facility available under Central Excise Act, 1944 or the rules made thereunder.

AI Summary

Excise duty exemption for exports unavailable when an intermediary trader supplies; trader may claim duty credit or refund. An exporter buying directly from a manufacturer and furnishing Form CT-1 can obtain supply structured as exempt from excise by the manufacturer. If a registered trader interposes between manufacturer and exporter, no statutory exemption attaches to the exporter; the trader may only pass on or seek recovery of duty paid through the prescribed duty credit or refund mechanism.