Rebate claim on exports

[Guest]

We are manufacturer of engineering products which comes under chapter 84 as exporting the same under advance licence and EPCG.

now my question is can i export under claim for rebate of excise duty?

If it is yes what procedure we have to adpot

 

[sv bhasker]

Sir,

Answer  lies in another question. Whether you are allowed goods to be exported under advance licence and EPCG scheme without executing bond/LUT or on paymenrt of duty?.

 

[Guest]

sir,

since we have accumulated credits in our cenvat a/c. so we would like to apply for rebate of duty on exports. 

 

[YAGAY andSUN]

If you pay central excise duty on finished goods at the time of their removal for export purpose then you may avail the rebate claim to the extent of duty paid on finished goods.

[Guest]

sir,

my question is can i eligible for rebate of duty while exporting the goods under varioius schemes of DGFT

i would like to clarify with you  we are importing the raw material or CG at nil payment of duty under adv.lic and exporting the final product on payment of duty for rebate claim purpose.

 

[Vijay kumar]

There is no one-to-one correlation between inputs and finished goods. There is no bar under DFIA or EPCG notifications and Rule 18 of CCR, 2002 to avail rebate and export benefit under DFIA/EPCG schemes simultaneously. You can pay duty on the goods exported, if they are dutiable and claim rebate under Rule 18 by following the procedure prescribed under Nofn.42/2001-CE(NT). The only bar is on claiming input stage rebate under Rule 18 r/w Nofn.43/2001-CE(NT) since in that case, the one-to-one correlation is applicable by virtue of the said Nofn. and obviously u r procuring the inputs without payment of duty under DFIA scheme.

[Guest]

as per Excise officer we are not eligible for claim of rebate on exported goods  when we are availing Cus.Ntfn.96/2009 for import of goods under various schemes at NIL payment of duty. we have to export only under bond/LUT.

 

kindly advise.

[Narender Singh Negi]

In case full drawback is opted then no CENVAT credit will be admissible and even there will be no requirement of excise registration certificate. In case the CENVAT credit is opted then registration certificate with the excise will be required and the CENVAT credit so taken will be utilized for payment of duty on finished goods for export under claim of rebate of duty as is being done now but in this case the duty drawback of customs portion only will be admissible.

 Apart from above, the inputs can also be procured without payment of duty under the provisions of Notification No.43/2001 CE (NT) issued under Rule 19 of the Central Excise Rules, 2002 and the finished goods will be exported under bond/LUT without payment of duty under form ARE-2. In this case also the unit has to remain registered with Central Excise. Another scheme to bring the inputs on payment of duty for claim of rebate of duty on such inputs can also be opted as per the provisions of Notification No.21/2004 CE (NT) and the export of finished good will again be made without payment of duty under bond/LUT and against form ARE-2.

[sv bhasker]

Dear Srinivas garu

 

It is categorically clarified by Mr Khatri and Mr. Vijay Kumar that you are eligible for rebate of duty paid on exported  goods. I fully agree with their views.

[Ravi Batra]

In my view one cannot claim rebate of duty paid on finished goods in the case of Advance Authorisation implemented vide Notification No. 96/2009-Cus, the reason for that the raw materials so procured for manufacture of finished goods was duty free. One can claim the rebate on inputs on which the excise/customs duties were paid, other than imported goods, by brand rate fixation. I also agree with the views of Shri Narendra Singh Negi on this issue.

AI Summary

Rebate of Excise Duty: paying excise on exported finished goods permits rebate under Rule 18; alternatives include drawback or bond/LUT. Exporters can claim rebate of excise duty on exported finished goods if they pay excise at removal and follow the Rule 18 rebate procedure and relevant notification requirements. Inputs obtained duty-free under advance authorisation or EPCG bar input-stage rebate due to one-to-one correlation rules; exporters may instead choose to pay duty on finished goods and claim rebate, opt for full drawback (forfeiting CENVAT), or use input-exemption/paid-input routes and export under bond/LUT with corresponding registration and documentation obligations.