To clear consignment for export purpose with payment of excise duty

[SURYAKANT MITHBAVKAR]

we are manufacture of Pharmaceuticals machinery . one of our customer who is going to export our

machinery require to clear our with payment of excise duty instead of CT-1 .

In this regard whether we have to pay that duty before the clear the material from our unit or we can

pay end of the month i.e. before 5th of succeding month alongwith other local consigment.

pl advice.

[ROHAN THAKKAR]

Dear Sir,

Generally the duty is to be paid at the time of removal [Rule 4 of Central Excise Rules]. However, Rule 4 states that the duty is to be paid in the manner stated in Rule 8.

The duty on the goods removed from the factory or the warehouse during a month shall be paid by the the 6th day of the following month, if the duty is paid electronically through internet banking and by the 5^th day of the following month, in any other case. [Rule 8 of Central Excise Rules, 2002]

Thus, duty is to be paid on 5th / 6th of the following month irrespective of the fact whether the goods are meant for export (in case it is duty paid export) or of a local clearance)

AI Summary

Excise duty payment timing allows deferred monthly settlement for goods cleared for export under duty-paid clearance. Payment of excise duty is generally due at removal but may be settled by the monthly deadline in the following month; this deferred monthly payment procedure applies equally to consignments cleared for export on a duty paid basis, with electronic payments subject to a slightly different monthly cutoff.