Central Excise_Urgent_Export

[Asked by Guest]

Dear Experts,

Please resolve my query

We have cleared Consignment to our Merchant Export after following ARE 1 Copies using our Running bond or LUT, But Merchant exporter forgot to submit are1 copies to the custom deptt.

Now he failed to submit export proof to us And we bothered because our LUT or bond has been used.

Please suggest what should we do..

Thanks in advance.

[KASTURI SETHI]

Sh.Bajaj Ji,

There are other docs also which prove that the goods have been actually exported. For example : 1. Air freight bill,shipping Bill, Foreign Exchange Receipt, Mate Receipt etc. You should approach your jurisdictional A.C./DC of Division Office. AC/DC has power to accept these docs as proof of export. If AC does not accept, then your consignment will be treated as cleared for home consumption. You have cleared excisable goods without payment of duty under bond or LUT. It is your responsibility.

[Ganeshan Kalyani]

Sir the proof of export to be taken to convince the department to prove that goods is not cleared for home consumption. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Yes, Sir. I agree with you. His problem will be solved if he convinces the AC/DC that goods have been actually exported and AC/DC has power to take lenient view. Govt. is very liberal regarding export because export is always in the interest of the nation. After all, there is no revenue loss at all. Keeping in view, the past neat and clean record of an assessee, AC may accept other docs as proof of export.

[Ganeshan Kalyani]

Sri Kasturi Sir I agree with your views. The Government is supportive in inducing exports because it pulls in the foreign currency. Thus the assessee is boosted to export more. In way of doing if assesse faces any problem then department is extending their support. Now as per recently conducted survey by CBEC assessee have responded well of their level of satisfaction in dealing with the department. The laws are transparent now. Improving. Thanks.

AI Summary

Proof of export: alternative shipping and freight documents can persuade authorities to validate LUT/bond usage and avoid home consumption treatment.
Where ARE 1 copies were not submitted after clearance under a Letter of Undertaking or running bond, the goods risk being treated as cleared for home consumption unless alternative documentary proof of export is accepted by the jurisdictional Assistant Commissioner/Deputy Commissioner. Acceptable evidence may include air freight bills, shipping bills, mate receipts and foreign exchange realization certificates; the AC/DC has discretion to accept these documents, and may adopt a lenient approach based on lack of revenue loss and the assessee's past compliance.