Purchase of goods without excise duty

[Asked by Guest]

Can a trader purchase goods without excise duty from a manufacturer in India and sell to an exporter against AEPC/CLE licence?

[Surender Gupta]

In excise, a trader can procure excisable goods without excise duty only on execution of Bond and CT-1 certificate as merchant exporter. Other than this, there are various situations where the goods can be procured without payment of excise duty, but in all these circumstances the procurer ought to be a manufacturer.

AI Summary

Procurement without excise duty limited: only merchant exporters with Bond and CT-1 or manufacturers qualify.
A trader may procure excisable goods without payment of duty only by operating as a merchant exporter who executes a Bond and obtains a CT-1 certificate; other duty-free procurement routes generally require the procurer to be a manufacturer.