REGARDING REBATE CLAIM.

[SANJEEV JADHAV]

WE ARE MANUFACTURER OF CASTINGS. WE HAVE PREPARED ARE-1UNDER REBATE BY CHARGING PATTERN DEVELOPMENT CHARGES SEPERATELY AND SUBMITTED OUR REBATE CLAIM WITH ALL NECESSARY DOCUEMNTS. OUR EXCISE DEPARTMENT IS DENYING REBATE CLAIM ON PATTERN DEVELOPMENT COST. THEY INFORMED US THAT PATTERN IS NOT EXPORTED ALONG WITH CASTINGS AND HENCE THEY WILL NOT SANCTION CLAIM FOR PATTERN DEVELOPMENT COST. PLEASE INFORM CAN WE HAVE TO LOOSE DUTY PAID ON PATTERN DEVELOPMENT COST ?

AI Summary

Rebate Claim Denied for Pattern Development Charges Under ARE-1; Patterns Not Exported With Castings, Says Excise Dept. A manufacturer of castings submitted a rebate claim under ARE-1, including pattern development charges. The Central Excise Department denied the rebate for these charges, stating that the patterns were not exported with the castings. One respondent confirmed the department's stance, explaining that patterns, made from materials like sand and chemicals, are not dispatched with final goods and thus do not qualify for a rebate. Another respondent noted that while the rebate for pattern development charges would not be sanctioned, the department would issue a cheque for the actual clearance of goods and allow CENVAT credit for the duty on patterns.