Merchant Exporter Registration, Central Excise

[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 ?

 

 

Posts / Replies

[CA. 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.

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