PHYSICALL EXPORT

[SNEHAL SHAH]

Dear sir,

We are approx 50% export at various countries . Now some foreign party require some material ( Complimentry ) which is not presanty manufacturing in our plant but we can purchase this material through dealer which is non excisable material .

Now my question is that can we exprot this material with our manufacturing item under rebate claim or UNDER UT-1?

Please guide us .

SACHIN

[Rama Krishana]

Where you are procuring goods from a non excisable unit, there is no need to follow the rebate claim procedure or UT-1. Under rebate claim, you have to pay excise duty first and claim rebate / refund later.

Yes, if you undertake some manufacturing process, you can follow either of the procedure.

AI Summary

Export of non-excisable inputs: procurement from a non-excisable unit removes need for rebate claim or UT-1. If an input is procured from a non excisable unit, export of that input with manufactured goods does not require the rebate claim procedure or UT-1; rebate requires payment of excise duty and later refund claim. If the exporter undertakes manufacturing using the purchased input, the exporter may follow either the rebate/refund route (with duty payment) or the UT-1 procedure depending on whether the input is dutiable and the nature of processing.