Notification 67/95 of C.E.Rule - Payment of extra duty

[Rajiv Kejriwal]

I am a Manufacturer Exporter of S.S.Utensil. All the finished goods which i manufacure is exported to foreign countries. The Raw Material which i purchased i.e.(S.S.Flat, Oil, Acid etc) are Excisable and my Finished product that is S.S. Utensil is Exempted . I opt the scheme of Duty Draw Back scheme of Central Government.I am exporting my product from last three year and given eyery kind of information regarding my work to the department and filing Excise Return Monthley. My all export has been done under the supervision of Excise Department.They never raise any question for any additional duty for the goods i manufacture for export. Now a new supritendent has come and asking the Excise duty to be paid on the intermediate goods by imposing the notification 67/95 of C.E.Rule. I told him that as whatever i manufactured is exported so local excise rule is not applicable on me , but he refused my statement and issued a showcause notice, demanding the duty for last one year for the goods exported. I therefore request you to please tell me what to do in such circumstances, and also inform me that shall i have to pay any extra duty for the goods exported out of india.

[Surender Gupta]

Since the goods have been exported, it appears that there should not be any duty of excise even on intermediate goods. Though the terms of show cause notice would reveal further to know the grounds on which show cause notice has been issued, I beleive that at first instance you must get the relief at appropriate level.

AI Summary

Export exemption for manufactured goods prevents additional excise on intermediate inputs; challenge show cause notice administratively. Exports of finished goods that leave the domestic market ordinarily preclude imposition of excise on those exported products and should not trigger additional excise liability on intermediate goods consumed in production for export; the show cause notice's grounds must be examined and relief sought through appropriate administrative channels rather than immediate payment absent clear legal justification.