Excise Rebate

[Sanjay Sharma]

Dear Sir,

 We are exporting the Automobiles parts on payment of Excise duty and subsequently claiming the rebate of excise duty paid at the time of Export and while procuring inputs we are claiming the CENVAT credit of the excise duty paid on Inputs.

 Questions need to be answered—

 In your view, is it appropriate to deposit the Excise duty and then claim the same as rebate? ,

1.  Should we stop the export on payment of duty and subsequent claiming of rebate, because in this scheme we are getting only our hard earned money back which we deposited as excise duty from the excise department after a considerable time, no value addition?
2. Alternatively, and most importantly, should we opt Export without payment of Excise duty under LUT and then claim (i) Refund of CNVAT credit accumulated on account of non-payment of duty on export, (ii) claim Duty Draw Back under All Industry Rate?

 Pls. give us your valuable opinion about above situation and guide us which scheme we should go for.

 Thanks and Regards,

Sanjay Sharma.   

AI Summary

Export duty options: pay duty then claim rebate or export without payment to claim CENVAT refund and duty drawback.
When accumulated CENVAT credit cannot be adjusted domestically, exporting on payment of excise duty and claiming rebate recovers duty paid but incurs administrative costs; exporting without payment under bond or LUT enables refund of accumulated CENVAT credit and claim of Duty Drawback under All Industry Rate, with Brand Rate fixation advisable if customs duty share is substantial. Procurement of inputs without payment is available and the choice depends on existing CENVAT balances.