EXPORT WITHOUT UT-1

[DEEPAK SHARMA]

Dear Sir,

A manufacturer exporter export the goods under UT-1 whareas there is no LUT filed to the AC/DC by the manufacturer, but exporter following all procedure like issue of ARE-1 under UT-1, Excise Inv. (duty not charged), and one is also defaulted that ARE-1 doesnt submitted within 24 hr to the juridictional authority. party had received currrency in bank and having proper Bank Realization Certificate (BRC) as per export invoice.

Note: Party is not availing CENVAT facility

What Should we do?

whether firm is liable to penal action?

does export proved once BRC got?

please guide more........     

[YAGAY andSUN]

It seems that you didn't follow the correct procedure while exporting the goods out of country.  However, submit all the documentary evidences to the concerned authority and file an application to the Jurisdictional Commissioner of Central Excise by stating the all material facts.  Since the BRC is also produced as proof of export, therefore, the Jurisdictional commissioner may grant permission post facto or impose nominal penalty.

[DEEPAK SHARMA]

This can be treated as procedural laps....

[Alok Rudra]

What do you mean by the term Party is not availing CENVAT .. do you mean to say your product is not excisable?

[DEEPAK SHARMA]

Party is not availing Cenvat Credit as their raw material is exempt, and the party is manufacturing Branded Goods and saling the goods in open market as well as export

[Alok Rudra]

Non submission of ARE-1 in prescribed time can be managed, but if  products are excisable and your LUT not filed and endorsed by AC, you will face trouble. As per my understanding penalty in terms of Rule 25 (1)(a) of Central Excise Rules. Your BRC has nothing to do with procedure notified in terms of Notification No. 42/2001.

[Alok Rudra]

You may also opt for compounding in terms of Compounding Rules 

 

Offence specified under section 9(1)(bb) of the Act

Upto fifty per cent of the amount of duty evasion, subject to minimum of ten per cent of duty evasion

[puspanjali mishra]

Theis can be reguralised with the help of Jurisdictional Authorities. This is merely a procedural laps...

[NK SHETE]

From the given information it appears that procedure under Rule 19 of Central Excise Rules, 2002 not followed. This procedural lapses, may be condonable.

[BHARAT PUROHIT]

DEAR

 A MANUFACTURER CANNOT CLEAR THE GOODS WITHOUT PAYMENT OF DUTY OR  CAN EXPORT UNDER UT-1 OR AGAINST ANNEX-1 OR UNDER  CT-3 ( IF DEEMED EXPORT). CLEARING GOODS WITHOUT DUTY OR SUCH DOCT IS OFFENCE.

 RECEPT OF FOREIGN EXCHANGE IS NOT IMPORTANT IN ABOVE CASE.

 

 THNX/ B.B.PUROHIT

[NK SHETE]

My views were based on decision of Tribunal in the case of Commr of C. Ex. Versus Ambadi Enterprises Ltd where in it has been held that -

Export - Proof of export not produced - Procedure under Rule 18/19 of Central Excise Rules, 2002 not followed - Procedural lapses, condonable in terms of Tribunal’s decision in the case of T.I. Cycles of India 

AI Summary

Exporter Faces Penalty for Procedural Lapses in Filing LUT and ARE-1 Under Central Excise Rules; Potential for Leniency A manufacturer-exporter exported goods under UT-1 without filing a Letter of Undertaking (LUT) with the Assistant/Deputy Commissioner, and failed to submit ARE-1 within 24 hours to the jurisdictional authority. Although the exporter received payment and obtained a Bank Realization Certificate, they did not avail CENVAT credit as their raw materials are exempt. Responses suggest that procedural lapses occurred, which may be regularized by submitting evidence to the jurisdictional authority. Penalties under Central Excise Rules could apply, but procedural lapses might be condonable, possibly with a nominal penalty or by seeking compounding under specific rules.