Exemption Notification No.12 /2012 –Customs

[Guest]

Respected Sir,

As we have the manufacturer of Pharmaceuticals products like tablets , capsules and we are manufacturing other brand products only .

As per the Notification No.12 /2012 –Customs -List 3 (See S. No 147 of Table) Si No: (83) Ursodeoxycholic Acid is exempted

Ursodeoxycholic Acid is one of the main raw material we purchased with excise duty to make the final product and with help of the above notification no shall i ask the supplier to supply without excise duty .

Thanks in advance for your best answer

Regards,

P.Pushparaj,

[KASTURI SETHI]

Sir,

You have mentioned Customs Notification and you are seeking exemption from Central Excise duty. I could not follow. Will you clarify your query please ?

[Guest]

Dear Sir,

Thanks for the valuable update .

With help of that customs notification no can i avail the exemption from Central excise duty.

Regards,

P.Pushparaj

[Suryanarayana Sathineni]

Dear Pushparaj,

I understand your query and if the raw material presently being procured by you on payment of duty can now be procured without payment of Excise duty if the said item is specified in list 3 or 4 of Customs Notification No. 12/2012-Cus since these lists were extended to Central Excise Notification 12/2012-CE under Sl. No. 108 A .

You can certainly ask your supplier to supply the goods availing the exemption under Sl. No. 108A of Notification NO. 12/2012-CE.

Best Regards

Suryanarayana

[Guest]

Dear Mr. Suryanarayana,

Thanks for the valuable reply.

Your suggestion will be of great help to us.

Regards,

P.Pushparaj.

[Guest]

Respected Mr. Suryanarayana,

Would you help me to find the life saving drug list to avail the excise duty exemption and provide the brief procedure to be followed for it .

Regards,

P.Pushparaj,

[KASTURI SETHI]

Sh.Surya Narayana Ji,

Thank you, Sir for your prompt and accurate reply.

[Guest]

Dear Sir,

I informed my supplier for availing exemption under Sl. No. 108A of Notification NO. 12/2012-CE but supplier is asking the annexure-45 against that notification .

Kindly conform annexure-45 is related to export of goods or we can use it for local sales .

we are not the exporter , we are manufacturing other brands only .

Regards,

P.Pushparaj

 

[KASTURI SETHI]

Also see Annexure-80. If input is obtained duty-free under any concessional/exemption notification, either the final product should be exported or duty should be paid on final product for home consumption as per prevailing rate of Central Excise duty. Procuring inputs duty-free is always conditional. Dutiable inputs cannot be brought free of duty to be used in the manufacture of exempted final product.

So co-relate Notification No.12/12-Customs with 12/12-CE very carefully. If picture is vague and subject to so many 'ifs' and 'buts', why to invite trouble ?

[KASTURI SETHI]

Under Old Chapter X procedure inputs were being brought free of duty for Industrial purpose. Now new rules have been inserted. Pl. go through the following:-

(9) Duty-free raw materials for manufacture of goods. - Old Chapter X Procedure – New Rules notified.- The existing Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable and Other Goods) Rules, 2001 have been substituted with the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable and Other Goods) Rules, 2016, so as to simplify the rules, including allowing duty exemptions to importer/manufacturer based on self-declaration instead of obtaining permissions from the Central Excise authorities.

[KASTURI SETHI]

SH.PUSHPA RAJ JI,

In continuation of my replies dated 6.5.16, I further clarify that Annexure-45 is for both purposes i.e. Export or Local Sales/clearance for home consumption. In case of export of final product no duty is required to be paid but for domestic clearance duty must be paid on final product as inputs are being bought free of duty.

However, Annexure-80 & 81 inserted vide Notification No.20/16-CE(NT) dated 1.3.16 should be preferred.

Just for information :- Rule 3 of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable goods) Rules, 2001 is new version of Old Chapter Procedure under erstwhile 192 of CE Rules, 1944.

[Guest]

Respected Mr.KASTURI SETHI ,

Thanks for the valuable and updated reply.

We will follow the self declaration procedure to obtain the permission form excise department

Shall i know which bond with surety i have to executive for Form I(Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable and Other Goods) Rules, 2016)

Thanks in advance ,

P.Pushparaj

[KASTURI SETHI]

Respected P.Pushpa Raj,

Now your firm is on right track. It is always better to choose safe track, especially, when safe procedure is available. Why to opt for a path which is full of uncertainties or conditions.

As per Rule 4(5) of CENTRAL EXCISE (REMOVAL OF GOODS AT CONCESSIONAL RATE OF DUTY FOR MANUFACTURE OF EXCISABLE AND OTHER GOODS) RULES, 2016[Notification No. 20/2016-C.E. (N.T.), dated 1-3-2016 as amended] you are to execute aGeneral Bond with Surety ANNEXURE-7 FORM B-2 and NOT WITH SECURITY.

EARLIER CENTRAL EXCISE (REMOVAL OF GOODS AT CONCESSIONAL RATE OF DUTY FOR MANUFACTURE OF EXCISABLE AND OTHER GOODS) RULES, 2001 have been substituted with new Rules, 2016 vide Notification No. mentioned above.

 

[Guest]

Dear Sir,

Thanks for your valuable suggestion and guidance provided .

it will help me to discuss with my top management .

Thanku very much Sir.

Regards,

P.Pushpraj.

AI Summary

Duty-free inputs entitlement allows concessional procurement subject to export or payment of excise on domestic clearance, with bond conditions. Supplies of specified raw materials may be procured without central excise duty where the Customs exemption list is extended to the Central Excise notification, but such duty-free procurement is conditional: inputs obtained duty-free require that the final product be exported or that excise duty be paid on domestic clearance. Annexure-45 may be used for export or local clearance; Annexures-80 and 81 are preferred. The revised rules allow self-declaration and require execution of a General Bond with surety (Annexure-7 Form B-2), not security.