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

Export under rebate permits fully operational export units to secure refunds of accumulated cenvat credit despite duty free export alternatives. There is no prohibition on an export oriented unit clearing goods under the rebate route; although duty free export is available, firms may choose rebate clearance because it enables conversion of accumulated cenvat credit into a refund, whereas refund procedures under cenvat rules can be more difficult to pursue.