Export on payment of duty from Warehouse., Central Excise

[Narendra Soni]

Dear Experts,

Our manufacturing unit "x"is located in UP state,registered in central excise deptt.

Being manufacturing unit is "X",we avail cenvat credit of input,capital goods and service tax in "X" unit only.

We arranged a warehouse "Y" in Gugarat State which will be registered in central excise department also.

We wil remove our FG on the basis of CT-2 & ARE-3 issued by our warehouse under Rule 11 invoice and store the same in warehouse "Y".

Form warehouse "Y",we intent to export under ARE-1.

1.How we can made export on payment of duty under rebate under rule 18 where as all cenvat is lying in manufacturing unit "X".

2.Can we utilise the cenvat of "X" manufacturing unit at the time of export from warehouse on payment of duty.

Kindly suggest

Regards

Posts / Replies

[surya narayana]

Dear Friend,

I understood that the Deport you are proposing to establish in Gujarat is an Export warehouse and not the depot.

Under the provisions of Export Warehouse, there is no possibility of your exporting goods on payment of duty since you have procured the Goods against CT-2 and ARE3A.

If you want to avail the cenvat credit lying in your mfg. unit (X), the following would be the better options

1. You take a dealer Registration for the proposed depot at Gujarat and clear the goods on payment of duty

from your Mfg. Unit X and your deport while exporting the goods from Gujarat, would be claiming the rebate of

such duty paid by following the procedure prescribed by CBE&C vide circular No. 294/97-CX dated 25.01.1997.

2. Claim of Refund by your unit X under Rule 5 of Cenvat Credit Rules,2004 since the goods cleared from this plant to

Gujarat Depot are meant for export . This option is subject to your checking with your departmental officers.since

there is no such express provision in the cenvat credit Rules.

Best Regards

Suryanarayana

[Ganeshan Kalyani]

Sri Surya Sir should not the querist excise an option of refund ?

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Yes, Sir. The assessee can claim refund under Rule 5 of Cenvat Credit Rules, 2004 being un-utilized and accumulated on account of export. Sh.Surya Narayana Sir has also suggested in Para No.2 of his repl dated 8.5.16.