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

AI Summary

Inquiry on Using FMS Duty Credit Scrip to Offset Excise Duty on Finished Goods Under Notification 30/2012-Central Excise Tariff An individual inquired about utilizing the Focus Market Scheme (FMS) duty credit scrip to offset Excise duty liability on finished goods, instead of paying by cash or CENVAT credit, following notification 30/2012-Central Excise Tariff. They expressed confusion over the mechanism for this utilization, as there is no update to the ER-1 form to reflect the notification. An expert responded, confirming that it is possible to avail of Drawback or CENVAT credit, but noted that the ER-1 form remains unchanged.