Consequences - export during lapse period

[Narayanan Sethumadhavan]

If a manufacturer exporter fails to renew his LUT for 3 months. But he exports goods during the lapse period. He renews the LUT after 3 months. IS there any consequences for the exports made during the particular 3 months ( where the LUT is not convered those 3 months)

AI Summary

Exporter Failed to Renew LUT; Exports Continued; Lapses Condoned with Proof of Export per Notification No. 42/2001-CE A manufacturer-exporter failed to renew their Letter of Undertaking (LUT) for three months but continued exporting goods during this period. A consultant explained that exporting under bond or LUT is crucial to avoid tax on exports, as outlined in Notification No. 42/2001-CE. Although non-furnishing of LUT is not simply procedural, such lapses can be condoned if proof of export is provided, as supported by the Eves Fashions case. Another participant agreed with this view, while a third sought advice on a similar situation, questioning if submitting export proof within 180 days would suffice.