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

AI Summary

Manufacturers can export excisable goods duty-free under UT-1 by following procedures and furnishing a bond; CT-1 also applicable. A manufacturer inquired about purchasing excisable raw materials without paying excise duty for export purposes under UT-1. A respondent clarified that a manufacturer can export goods without paying duty if they follow prescribed procedures and furnish a bond. Another participant questioned if CT-1 is applicable, suggesting reviewing notification 46/2001. A third contributor confirmed that procurement can occur under CT-1, which must be obtained from the relevant Commissionerate. The discussion focused on the procedural requirements for duty-free procurement for export manufacturing.