FMS Scheme

[Sanjay Sharma]

 Dear Experts,

As per the notification no. 30/2012-Central Excise Tariff, we understand that we can procure the excisable goods from the domestic market without payment of Excise duty by using the Focus Market scheme duty credit scrip but, there is a confusion about the utilization of the said FMS for the Excise duty payment on finish goods. In other words, can we adjust our Excise duty liability on final product against the said FMS rather tan paying the said excise duty by cash or by cenvat credit & if the case is like this then what would be the mechanism to utilize the FMS as there is no change in the form ER-1 yet to taking the effect of this notification?. pls. provide your experts advise in this.

Regards

Sanjay Sharma

[YAGAY and SUN]

Yes you can avail the Drawback or CENVAT credit but there is no change in the ER-1 form.

AI Summary

FMS duty credit scrip can discharge excise liability, allowing drawback or CENVAT credit while procedure remains unchanged.
The notification permits utilisation of the Focus Market Scheme (FMS duty credit scrip) to offset excise liability on finished goods; beneficiaries may avail drawback or claim CENVAT credit for that purpose, and there is no change to the current ER form procedure, so existing administrative filings remain in force pending procedural amendments.