REBATE CLAIM BY EXPORTER

[PRAMESH GUPTA]

Dear All,

I have a situation. For example there is Company A who is the manufacturer and registered under Excise. There is a Company B who is a Exporter.

Now Co. B want to exports a material mfg by Co A, but Co. A only wants to give this material by charging excise duty and does not want to give ARE-1, also only modvat copy. In such scenario what can Co B do to claim the rebate/ refund of this excise amount.

Can Co.B take excise number in his name and then buy material and then exports and claim refund.

Please advise

thanks

pramesh

Company B cannot claim rebate claim. Company B can issue ARE-1 to Company A and go for merchant export and clear the goods from the premises of the manufacturer Company A and then can claim rebate claims on the goods so exported.

AI Summary

Rebate eligibility requires merchant export using an ARE form and clearance from the manufacturer's premises to claim refund.
An exporter cannot directly claim rebate if the manufacturer charges excise duty but refuses the ARE form. The exporter must issue an ARE form to the manufacturer, clear the goods as a merchant export from the manufacturer's premises, and then pursue the excise rebate/refund based on that merchant export clearance.