Purchase of raw material without paying excise duty

[Ram Babu]

Dear Sir: Can a maufacturer buy exciseable raw material without payment of excise duty for the purpose of export against UT1

[Surender Gupta]

The facility to export against UT-1 is available to the manufacturer who is manufacturing the goods being exported. However the subsequent manufacturer who wants to procure the material from the first manufacturer for further manufacturing activity and export subsequently, the facility of procuring such raw material without payment of excise duty is available. For this purpose he has to furnish bond and follow prescribed procedures.

[Madhukar N Hiregange]

Is it CT1 ? You may examine notification 46/2001

Dear Friend, It can be happened through CT-1, You can procure material on the basis of CT-1 obtained from Your Commissionerate. Manoj

AI Summary

Duty-exempt procurement of excisable raw materials permitted for subsequent manufacturers when exported, subject to bond and prescribed procedures.
A subsequent manufacturer may procure excisable raw materials without payment of excise duty for further manufacture and export provided the purchaser furnishes a bond and follows the prescribed procedural formalities under the applicable export certificate procedures.