Merchant Exporter Registration

[Prashanth Bhat]

A Trading firm has received a Export Order. The product has to be manufactured for which the trading firm intends to buy the raw material and give to a job worker and export subsequently. The trading firm is registered under excise as a trader.

1. Does he need to get registered as a Merchant Exporter ? and then can he avail the input rebate or go for a refund

2. OR does he need to get registered as a manufacturer to take the input credit / refund ?

 

 

[Surender Gupta]

In excise the liability is of the manufacturer. In this case the manufacturer is the Job Worker. Therefore, job worker may get registered with excise department if he wish to avail Cenvat Credit and refund of cenvat credit. In case there is no issue of availability of cenvat credit, export may be done under duty drawback scheme or any other incentive that may be available.

Detailed facts and circumstances may help to address the query in more specific manner.

AI Summary

Manufacturer liability in excise: job worker registration enables Cenvat credit or refund while exporters may use duty drawback. Excise liability rests with the manufacturer, so where a trading firm outsources production the job worker is treated as manufacturer and may obtain excise registration to claim Cenvat credit and refunds; alternatively, if Cenvat credit is not an issue, export may proceed under duty drawback or other export incentives.