TaxTMI 
TaxTMI 
Consequences - export during lapse period
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....onsequences - export during lapse period<br> Query (Issue) Started By: - Narayanan Sethumadhavan Dated:- 25-5-2009 Last Reply Date:- 12-9-2015 Central Excise<br>Got 3 Replies<br>Central Excise<br>If a manufacturer exporter fails to renew his LUT for 3 months. But he exports goods during the lapse period. He renews the LUT after 3 months. IS there any consequences for the exports made during the pa....
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....rticular 3 months ( where the LUT is not convered those 3 months) Reply By Pradeep Khatri: The Reply: Dear Sir, Export under bond (or LUT) is a major trade- facilitation measure which is allowed as per policy decision on not to export taxes. But furnishing of bond or LUT is one of the essential conditions in the Notification No. 42/2001-CE (N.T.), dated 26-06-2001 issued under Rule 19 of C.E.Rul....
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....es,2002. It cannot be regarded as merely procedural because, removal of goods without payment of duty cannot be made without safegurding revenue interest in order to prevent mis-use of the facility. For an assessee who is engaged in exports regularly, non-furnishing of bond or LUT cannot be considered as due to ignorance. But such a mistake can be condoned only by bodies like CESTAT. In the case o....
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....f Eves Fashions v Commissioner [2006 (205) E.L.T. 619 (Tri. - Del.) it was held that duty and penalty confirmed on ground of non-furnishing of bond or letter of undertaking (LUT) was not sustainable when duly attested photocopies of shipping bill(EP-Copy) B/Lading and Foreing Exchange Remittance Certificate or BRC were submitted within 180 days from the date of LEO as mentioned on the S/Bills. Gen....
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....erally, when export is proved duty demand may not sustain. In my opinion submission of proof of export is must and non furnishing of LUT condonable when proof of export provided. Best Regards Pradeep Khatri Indirect Tax Consultant e-mail: - [email protected] Reply By Mukesh Kumar: The Reply: i see no reason to disagree with the views expressed by Mr. Pradeep Khatri. Reply By Devang Shah: The Reply: S....
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....ir, we are LUT renewal lapse two month and during the period we export under without duty paid and LUT number mention on ARE 1 previous LUT number. we are in fault ? if we submit total proof of export document submit excise authority within 180 days. any suggestion or advise to us with any case study regarding said Issue.<br> Discussion Forum - Knowledge Sharing ....