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 ?
Trading Firm's Export Query: Job Worker Must Register for Excise to Avail Cenvat Credit; Explore Duty Drawback Options A trading firm, registered under excise as a trader, received an export order for a product that requires manufacturing. The firm plans to buy raw materials and use a job worker for production. The main query is whether the firm needs to register as a Merchant Exporter or as a manufacturer to avail input rebate or refund. The response clarifies that the job worker, being the manufacturer, should register with the excise department to avail Cenvat Credit and refunds. Alternatively, exports can proceed under the duty drawback scheme or other available incentives, depending on specific circumstances. (AI Summary)
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