C.E. Notification No. 21/2004 ( Rebate of Input as well as on finished goods)

[kamal chordia]

Dear Sir

We had been granted permission to work under the notification no 21/2004 dated 06.09.2004 (N.T.) , while granting permission department allowed permission by fixing the norms of inputs A,B,C.

However, In manufacturing of finished we used inputs such as A,B,C and D.

Department sanctioned rebate of inputs A,B and C and disallowed rebate on input D on the ground that same is not mentioned in our permission, we are claiming rebate of all inputs used in manufacturing of export whether covered in the permission or not as we had debited the duty of all inputs used in manufacturing of export goods.

In this case department neither allow cash refund of input D nor allow re credit of duty debited on input D.

In above situation for future claim , should we reversed duty of only those inputs for which permission granted by department and file rebate claim or reversed duty paid on all inputs used in manufacturing of export goods whether inputs covered in the permission or not.

Thanks & regards

Kamal

[Rajagopalan Ranganathan]

Sir,

Para 1A of Notification No. 21/2004 dated 06.09.2004 (N.T.) states that "the manufacturer or processor shall file a declaration with the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture describing the finished goods proposed to be manufactured or processed along with their rate of duty leviable and manufacturing/processing formula with particular reference to quantity or proportion in which the materials are actually used as well as the quality. The declaration shall also contain the tariff classification, rate of duty paid or payable on the materials so used, both in words and figures, in relation to the finished goods to be exported".

In view of this provision you have to declare all the materials used for production or processing of export goods. If you have not done so the rebate will not be granted by the department. This is my view.

AI Summary

Input declaration requirement: failure to declare materials used in export manufacture bars rebate and refund of duties. Notification No. 21/2004 (Para 1A) mandates that manufacturers/processors file a declaration detailing finished goods, the manufacturing/processing formula with quantities or proportions and quality of all materials actually used, tariff classification and the rate of duty paid or payable on those materials; rebate and refund entitlement depends on that declaration, and materials not declared are not eligible for rebate or duty recredit.