LIQUOR MANUFACTURING

[Guest]

SIR

WE MANUFACTURE ALCOHOL FOR HUMAN CONSUMPTION ON WHICH RAJASTHAN STATE EXCISE IS PAID. IS THERE ANY REBATE OR REFUND OF SUCH EXCISE DUTY IF ALCOHOL IS EXPORTED OUTSIDE INDIA?

ALSO WE ARE REGISTERED UNDER SERVICE TAX ACT. SO IS THERE ANY RULE THAT SERVICE TAX PAID MAY BE UTILISED FOR PAYING STATE EXCISE DUTY?

REGARDS

SB

[YAGAY andSUN]

Since, wine/liquor etc. are the subject matter of State Government, therefore, if there is any notification issued by the State Government, then, Excise duty levied by the State Governent, either would be exempted or refund as the case may be.

There is no provision which allows to adjust service tax paid with State Excise duty on liquors as the both are independent laws and have been levied by the Central Government and State Government, respectively.

[Dr. Sanjiv Agarwal]

Dear SB,

 

State taxes and central taxes are not cenvatable interse.

To my knowledge, there is no rebate in state taxes if the goods are exported out of India.

Service tax paid can not be utilised for payment of state excise duty.

 

Dr Sanjiv Agarwal

AI Summary

State excise: no general refund on exported alcohol; central service tax cannot be used to pay state excise duties. Relief from State Excise on exported alcohol depends exclusively on a State Government notification; there is no general rebate or refund entitlement on export absent such notification. Central Service Tax cannot be adjusted against or used to pay State Excise duties because central and state levies are distinct and not cenvatable inter se.