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Export under rebate-non realization of export proceeds

Central Excise - Started By: - arbs sarma - Dated:- 13-4-2016 Last Replied Date:- 23-8-2016 - Sirs, We exported our final product on payment of duty under claim of rebate. We have also received rebate from department on the FOB value. However, subsequent to export, depending on the market conditions abroad we offered discounts to the foreign customers which resulted in short receipt of export proceeds. As the discounts were offered subsequently, the same was not considered while sanctioning reba .....

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ted under LUT, and export proceeds are short realized/ non realized. 4. If we compute and payback the excess rebate sanctioned ,if any, back to department in PLA, are we entitled to get refund of same in cenvat. regards - Reply By KASTURI SETHI - The Reply = Sir, Point-wise reply is as under :-1. YES.2. You cannot claim rebate claim. If exported under LUT/Bond without payment of duty and export proceeds are not received, pay CE duty along with interest.3. Reply in point no. 24. NO. Pl note that .....

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- Reply By surya narayana - The Reply = Dear Sarma, In this context I differ with shri. Kasturi Sethi Ji, on the following grounds. Under central Excise Rule 18 Rebate of duty paid on the goods exported is paid based on Proof of Export and the sanction is nothing to do with the realization of export proceeds. Neither the Rule nor the Notification issued thereunder does not prescribe such condition of submission of export proceeds realization for sanction of rebate except in the below circumstan .....

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you have submitted the proof of export given by the customs on the back side of the ARE1 and based on which if the department sanctioned the rebate, there is no such requirement for submission of BRC. The rebate is provided under central excise considering the concept that goods only are exported and not the taxes. hence, once goods are proved as exported, whatever duty paid on such export need to be refunded in form of rebate to the exporter. Further, the requirement of submission of BRC is man .....

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t payments of goods (FOC basis). Samples are being exported on FOC basis, same are also subject to Excise Rebate being granted. Objective is to returned back the duty paid on inputs used in the Exported Product as Constitution says that Taxes can't be exported.As Duty payment is linked to Manufacture, similarly Rebate is linked to Export of goods. Two conditions needs to be satisfied i.e. Duty has been paid on Inputs used for manufacture of Export Product and Export has been established.Am n .....

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in BRC was transaction value as it was actually paid by buyer of goods, and exporter was entitled to rebate only to that extent. It was further held that amount paid in excess is not duty but deposit with government . Re-credit of excess amount was allowed. 2. The aforesaid decision supports views of Shri Kasturi Sethiji - Reply By arbs sarma - The Reply = Sirs, There is a judgment of Delhi Tribunal in the case of Jindal Stainless Limited Vs Commissioner Of Central Excise, Rohtak 2012 (10) TMI .....

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ere ultimately not exported out of India; or that the proof of export in form of transference copy of the shipping bill was not received. The Department s only objection is that full export proceeds have not been received. 6. Rebate of duty under Rule 18 of Central Excise Rules, 2002 provides for rebate of duty in respect of export of goods in terms of the conditions and limitations as prescribed under Notifications issued under this rule. Central Government has issued Notification No. 19/2004-C .....

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oceeds have not been received at all. The allegation is that export proceeds are less than the exports value declared by the appellant for which explanation given by the Appellant is that this is due to exchange rate fluctuation, which prima facie appears to be correct. In view of this there is prima facie a case in favour of the appellant. Therefore, the requirement of per-deposit of duty demand, interest and penalty is waived for hearing of the appeal and recovery thereof is stayed till dispos .....

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orters. The party may or may not win in the Tribunal but nobody likes litigation. Regarding the latest judgement referred by Sh.Sarma Ji, I am of the opinion that there is a great difference between NOT receiving BRC at all and Receiving less amount due to fluctuation in international market prices It is a fact that Govt. forgoes so many taxes just because of foreign exchange to be earned on account of exportation. If foreign exchange is not received, why Govt. should suffer loss of so many taxe .....

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