Export under Rebate

[pradeep kataria]

Can an 100% EOU clear their export under rebate ?

[Dinesh Gupta]

why not? There is no restriction on EOU to export the goods under rebate. But the question arises that where an EOU can export the goods without payment of duty, why it wish to clear the goods on payment of duty firm get refund / rebate thereafter? There may be something wrong, but indeed it can export under rebate.

[pradeep kataria]

Dear Dinesh Gupta Thanks for your reply. Actually we have huge balance in our Cenvat Credit account which we are unable to utilise and hence if we go for rebate mode we can claim the refund easily. Claiming refund under Cenvat credit Rule 5 is slightly difficult.

AI Summary

100% Export-Oriented Units can export under rebate to utilize Cenvat Credit balances easily, avoiding challenges with Rule 5 claims. A discussion on a forum addresses whether a 100% Export-Oriented Unit (EOU) can export goods under rebate. A participant confirms that EOUs can indeed export under rebate, questioning why an EOU would choose this method when it can export without duty payment. Another participant explains that their EOU has a significant balance in their Cenvat Credit account, which they are unable to utilize. Therefore, opting for the rebate allows them to claim a refund more easily, as claiming under Cenvat Credit Rule 5 is more challenging.