Rebate claim issue

[Prashant Ghadage]

Dear sir

We are purchase under CT-2 Bond and same items has been export. but my query is can we claim rebate claim on same material which we were purchased under CT-2 Bond

[KASTURI SETHI]

Sir,

You procured excisable goods without payment of duty under bond and exported. No duty has been paid on final product. Do you want to claim rebate of duty paid on inputs used in the manufacture of final product by the manufacturer ?

[Prashant Ghadage]

Dear Sir,

Thanks for Responce

We have accumulated Cenvat we want recover so we purchase under CT-2 Bond and want to claim Rebate claim.

we can claim rebate claim?

[KASTURI SETHI]

Dear Sir,

If Cenvat Credit has been accumulated because of export and you are not in a position to use, you can apply for refund under Rule 5 of Cenvat credit Rules, 2004. Refund claim is admissible.

[Prashant Ghadage]

Dear sir

can we claim under refund under Rule 5 as well as rebate claim both way Simultaneously

Thanks

Prashant

[KASTURI SETHI]

Sh.Prashant Ghadage Ji,

Here no duty has been paid on final product. CE duty paid on inputs have been used in the manufacture of final product (dutiable) exported without payment of duty. You may claim rebate of duty involved in the inputs used in the manufacture of exported goods under Rule 18 of CE Rules, 2002.

You can file refund claim under Rule 5 of Cenvat Credit Rules, 2004, being not in a position to utlilise on account of export. Both provisions are separate. These should be inter-mingled. One-to-one co-relation is not possible. No double benefit is allowed in any way. You are to see this aspect.

 

[Venkataprasad Pasupuleti]

Dear sir,

If you have procured input material without duty then it means you have enjoyed the export benefit on inputs also. Again asking rebate/refund of accumulated credit leads to double benefit, which is not allowable.

[YAGAY andSUN]

No way. Even our Constitution does not allow the dual benefits in such scenarios.

[Ganeshan Kalyani]

I am also of the same view as expressed by Experts. Thanks.

[Prashant Ghadage]

Thanks A lot

AI Summary

Rebate on Inputs for Duty-Free Exports Allowed Under Rule 18; No Dual Benefits with Rule 5 Cenvat Credit Refund. A participant inquired about claiming a rebate on materials purchased under a CT-2 Bond and exported without duty payment. An expert clarified that since no duty was paid on the final product, a rebate for duty paid on inputs used in manufacturing the exported goods can be claimed under Rule 18 of the CE Rules, 2002. Additionally, a refund under Rule 5 of the Cenvat Credit Rules, 2004, is possible if Cenvat Credit is accumulated due to exports. However, claiming both simultaneously would result in a double benefit, which is not permissible. Other contributors agreed, emphasizing that dual benefits are not allowed.