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Export to Merchant Exporter

Central Excise - Started By: - Rudrayani Shedjale - Dated:- 22-5-2015 Last Replied Date:- 6-6-2015 - HiRegularly we export under UT-1 i.e.Letter of undertaking in some transactions, we sell the goods to Merchant Exporter without charging excise & vat.They provide us CT-1,A.R.E.1 & (H form later)so for us it direct export only or what?Now when we are claiming for cenvat credit refund under Rule 5, we showed it as our export only.But excise authorities are disallowing that by saying you do .....

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nts evidencing Exports such as : Photocopy of EP Copy of Shipping Bill with your Name endorsed on it as Supporting Manufacturer, Copy of B/L or Airway Bill, Copy of ARE-1 with export shipment endorsement from Customs should be submitted alongwith the Refund Claim to your Jurisdictional Assistant Commissioner, CENTRAL EXCISE DIVISION office and based upon above and other compliances as stated in Rule 5 of CCR 2004, Refund will be processed. - Reply By Rudrayani Shedjale - The Reply = Sir thank yo .....

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jurisdictional Assistant Commissioner may not allow refund but CESTAT may allow if litigation happens.. - Reply By Rudrayani Shedjale - The Reply = Dear Sir I have received a circular no.30/2005-Cus dtd 12.07.2005 in which there is mentioned as Third Party Exports In terms of para 2.34 read with para 9.62 of the Foreign Trade Policy, 2004-09, Third Party Exports have been defined to mean exports made by an exporter or manufacturer on behalf of another exporter(s). In such cases,export documents .....

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does it mean that shipping bill should be in the name of both manufacturer & third part exporter? - Reply By CS SANJAY MALHOTRA - The Reply = Shipping bill should have mentioning names of your company as supporting manufacturer and third party as Exporter. Have mentioned the same in my initial reply that your company's name should be endorsed on copy of Shipping bill. - Reply By Rudrayani Shedjale - The Reply = ok.thank you very much for the information. - Reply By suresh kumar - The Rep .....

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on FOB amount, we(manufacturer exporter) are not entitled to avail its benefit under Rule 5 even if our name would be there on shipping bill.is it correct?so they are disallowing those transactions which we have sold against CT-1/ARE1. - Reply By CS SANJAY MALHOTRA - The Reply = Hi Mr Suresh,Your views are also in line with submissions made by me. Photocopy of EP Copy of Shipping Bill and ARE-1 with mention of name of both Manufacturer and Exporter is an evidence of export of goods and eligible .....

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ned at ISSUE ID 108647 (Similar case) - Reply By Rudrayani Shedjale - The Reply = many many thanks for your support. but what if we have availed the drawback as there is mentioned this condition as Provided that no refund of credit shall be allowed if the manufacturer or provider of output service avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims rebate of duty under the Central Excise Rules, 2002, in respect of such duty; or claims rebate of .....

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?? - Reply By GANTI SARMA - The Reply = Draw back and refund claim from Excise are two separate procedures. Draw back is export incentive is given by Government as the exporter procuring foreign currency to india. Refund claim is meant for whatever excise duty paid on inputs used in finished goods for export is return back. Many people as well as departmental officers are confusing about these two benefits claimed by exporter. But every exporter will get these two benefits. But, one thing you sh .....

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in respect of customs portion & not in respect of excise portion. so we can claim for Cenvat Credit under Rule 5. this is what the concept i have understood now. Many thanks to Sanjay Malhotra Sir & GANTI SARMA - Reply By Subhash Modi - The Reply = Drawback at the All Industry published rate ad valorem on FOB export value (subject to value caps in certain cases) is a refund of duties of customs and or excise suffered on imported and domestic inputs used in the manufacture of the export .....

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cenvat credit is being availed meaning refund of the basic duty of customs suffered on the imported inputs. When the rate is the same under Col. A or B then it is taken as customs portion only and is available irrespective of whether cenvat credit is availed or not. Drawback relates to unrefunded input duties allowed in terms of Section 75/CA, 1962 + Sec. 37/CEXA, 1944 + Sec. 94/FA, 1994 read with Customs, Excise Duties & Service Tax Drawback Rules, 1995 Rebate (refund) of excise duty paid o .....

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t has been availed of such duty, in terms of Rule 18/CEX Rules, 2002 read with Not. 21/2004-CE(NT).through ARE2 procedure. Instead of availing output (ARE1) or input duty (ARE2) rebate as an alternative finished goods can be removed for export without payment of duty under bond subject to export proof (Rule 19(1) Not. 42/20111-CE (NT) or inputs can be procured duty free for manufacture and export of the finished goods therefrom [Rule 19(2) Not. 43/2011-CE(NT)] which precludes availing cenvat cre .....

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rawback (excise portion) has been claimed on the export. So long as sufficient cenvat credit balance is available then duty better be paid on the finished goods meant for export by utilising the cenvat credit balances and rebate in cash be claimed rather than using the LUT facility and allowing credit to accumulate and then resorting to more cumbersome and more conditional CCR, 2004 Rule 5 cash refund mechanism - Reply By Rudrayani Shedjale - The Reply = Sirall you want to say if we are having s .....

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claim of rebate (Rule 18) or without payment of duty under bond subject to export proof [Rule 19(1)] the value under Column 7 in the ARE1 should be the CEX Act Section 4 value and not the FOB export value. At times the FOB value may be much lower than the value on the date, place and time of removal i.e.at the factory gate because of duty free inputs imports or FTP and Drawback relief. If the Section 4 value is higher than the FOB value then always adopt the Section 4 value in the ARE1, pay dut .....

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