Removal of Goods to Foreign Warehouse - Rejected

[Pradeep Jain]

Dear Sir,

Removal of Goods to our Foreign Warehouse . We have send the same under ARE-1 and Letter of Under Taking submitted to the Excise Department.

Some of goods were reject by the Customer and we are not able to take the delivery of the same. The same will be scrapped at abroad .

Qurery is that:-

1- do we need to pay excise duty along with interest of the rejected goods laying at Foreign Warehouse.

2- Is there any Sales Tax obligation ?

Kindly advise.

Regards

Pradeep Jain

AI Summary

Exported goods rejected abroad: no excise or sales tax while abroad, subject to BRC and reimport rules.
Goods rejected by an overseas buyer and scrapped abroad do not attract central excise duty or sales tax while they remain abroad; re importation invokes customs treatment. Non receipt of export documentation can render excise duty payable with interest. Availment of export incentives may require proportionate refund with interest.