TaxTMI 
TaxTMI 
WE ARE MANUFACTURER OF CASTINGS. WE HAVE PREPARED ARE-1 UNDER 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 ?
REGARDING REBATE CLAIM.
24 Jun 2012 
2 Replies 
1637 Views Asked by
Rebate denial for non exported production tools; duty on pattern may be recovered through CENVAT credit instead.
Rebate under ARE 1 is not available for pattern development charges when the pattern is not exported with the goods, because such patterns are used in production and not dispatched; rebate will be issued only for duty on actual exported goods, while the duty portion attributable to the non exported pattern can be recovered or adjusted through CENVAT Credit or a separate departmental order. (AI Summary)
Rebate under ARE 1 is not available for pattern development charges when the pattern is not exported with the goods, because such patterns are used in production and not dispatched; rebate will be issued only for duty on actual exported goods, while the duty portion attributable to the non exported pattern can be recovered or adjusted through CENVAT Credit or a separate departmental order. (AI Summary)