Goods Exported without renewal of LUT

[Guest]

Dear Experts,

We are the manufacturer of Pharmaceuticals products.We have the LUT certificate to do export without payment of duty .Due to unawareness of Excise rules we did not renewal the LUT after completion of one year validity and also we did some export without renewal of LUT. After came to our Knowledge we informed the range and Division and as per officers instruction i have reversed the Duty amount in our RG23A Part II Register as well as paid the interest amount and submit a letter to Division.Finally we applied a fresh LUT for our future export .

Now my question is for that non renewal of LUT export i have all the documents like , ARE-1 , Shipping Bill , Bill of Lading .Now can i claim that reversed duty amount with help of this document.

Thanks in advance

P.Pushparaj.

[MUKUND THAKKAR]

please clearify have you received any written communication from your officer m/r reversal of duty ? or you have reversed on verbal instruction?

please also clerify that you had made consolidated entry In Part II or ARE-1 wise?

please check your debit entry and other documents of export with in time limit of with in six month ?

Are you obtain the signature of concern officer during the time of export in ARE-1. ?

[KASTURI SETHI]

The questions raised by Sh.Mukund Thakkar, Sir are very very crucial. Overall it is a procedural lapse. Nothing to worry. With all the proofs of export (including especially the proof of receipt of foreign exchange) will come to the rescue of the exporter hoping that no other mistake has been committed as pointed out by Sh.Mukund Thakkar, Sir. The only lapse of non-renewal of LUT will not be hurdle in sanction of rebate claim.

[Ganeshan Kalyani]

Dear Experts, what is the strength of Officer on non-renewal of license over the assessee. Is procedural lapse excisable. please through some light. Thanks.

[Ganeshan Kalyani]

Sorry please read "excisable" as "excusable ". Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Board has issued instructions time and again not to harass exporters for minor procedural lapses in the interest of nation. This lapse can be exonerated. However, maximum penalty imposable is ₹ 5000/- under Rule 27 (General Penalty) of Central Excise Rules, 2002.

[Guest]

Respected Mr. MUKUND THAKKAR.,

Thanks for the updation .

1. please clearify have you received any written communication from your officer m/r reversal of duty ? or you have reversed on verbal instruction? we have reversed on verbal instruction only .

2.please also clerify that you had made consolidated entry In Part II or ARE-1 wise? we made consolidated entry in Part II.

3.please check your debit entry and other documents of export with in time limit of with in six month ?

We have all the export doc (proof for export) with in the time limit of six months.

4. Are you obtain the signature of concern officer during the time of export in ARE-1. ?

Yes sir. we have the ARE-1 with the signature of concern officer .

Thanks in advance again.

Regards,

P.Pushparaj.

[Guest]

KASTURI SETHI Sir,

In my ARE-1 we declared as" Export under LUT " and we did not declared " rebate will be claimed". Its leads any problem to claim duty under Rebate .

Thanks in advance

P.Pushparaj

[KASTURI SETHI]

Undoubtedly, there are procedural lapses but these are ignorable in the interest of the nation, especially, in view of the fact that goods have been exported.Foreign exchange has been received. Duty has been paid on the exported goods and all proofs of export are with your firm as replied above.

Final decision is in the hands of adjudicating authority/sanctioning authority.

[Guest]

KASTURI SETHI SIR,

Thanks for your continues Guidelines and support

Regards,

P.Pushparaj

AI Summary

Pharma Firm Seeks Duty Reclaim for Exports After LUT Lapse; Minor Procedural Issues May Be Overlooked A pharmaceutical manufacturer exported goods without renewing their Letter of Undertaking (LUT), which allows duty-free exports. Upon realizing the oversight, they reversed the duty amount and paid interest as instructed by authorities, and applied for a new LUT. They seek advice on reclaiming the reversed duty using export documents. Respondents highlight procedural lapses but suggest these are minor and can be overlooked if all export proofs, including foreign exchange receipts, are available. The final decision rests with the adjudicating authority, and the maximum penalty for such lapses is 5000 under Central Excise Rules.