Payment of excise duty

[SANJEEV JADHAV]

We are purchasing patterns from outside pattern makers on behalf of foreign customer. We are remitting pattern payment to the pattern makers and chargeing the same to the foreign party by making seperate invoice including 10% to 15% margin in the pattern value. The said patterns are used only for manufactur of export castings ordered by foreign party. Please guide whether we required to pay excise duty on the pattern amount.

AI Summary

Excise Duty Clarified: No Duty on Patterns Supplied Directly to Foreign Buyers for Export Castings, Manufacturer Liable A query was raised about the obligation to pay excise duty on patterns purchased from external makers for foreign customers. The patterns are used in manufacturing export castings. The reply clarified that excise duty is not payable by the purchaser if the patterns are supplied directly to foreign buyers, as the duty is the responsibility of the manufacturers. If the patterns are used in export casting, they can be exported without paying excise duty, provided the manufacturer does not claim any exemptions.