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TMI Blogcenvat credit on re-imported goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... A manufacturer has exported goods through merchant exporter. However, due to quality problems, goods are re-imported by the merchant exporter after paying of applicable customs duties for sending back to original manufacturer. Bill of entry is in the name of merchant exporter, who is not registered with CE dept for passing on cenvat credit.. Please advise with suitable circulars, case laws as to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow credit of the customs duty paid can be taken by the manufcaturer in the above situation. Regards. - Reply By K V V B gangadhar - The Reply = Need some more clarity: Is shipping bill filed by Merchant exporter on his name while exporting the goods? Goods are exciseable or not ? Manufacturer name has mentioned any where in shipping bill ? - Reply By K V V B gangadhar - The Reply = Som ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e general information with reg to reimported goods for repair / return. May be useful for you. Final products cleared on payment of duty can be brought back for repairs etc., by following prescribed procedures. <!--msthemelist--> <!--mstheme--> Duty paid goods can be brought in factory for being re-made, refined, reconditioned or for any other reason under rule 16. <!- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -mstheme--> <!--msthemelist--> <!--msthemelist--> <!--mstheme--> The goods need not have been manufactured by assessee himself. <!--mstheme--> <!--msthemelist--> <!--msthemelist--> <!--mstheme--> Cenvat credit of duty paid on such goods can be taken, on basis of duty paying documents of such goods. <!--mstheme--> <!--msthemeli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st--> <!--msthemelist--> <!--mstheme--> After processing/repairs, if the process amounts to manufacture , excise duty based on assessable value is payable. <!--mstheme--> <!--msthemelist--> <!--msthemelist--> <!--mstheme--> If process does not amount to manufacture, an amount equal to Cenvat credit availed should be paid [rule 16(2)]. &l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t;!--mstheme--> <!--msthemelist--> <!--msthemelist--> <!--mstheme--> If some self manufactured components are used, duty will have to be paid on such components. <!--mstheme--> <!--msthemelist--> <!--msthemelist--> <!--mstheme--> Buyer/recipient of such goods can avail Cenvat credit of such amount/duty. <!--mstheme--> <!--msth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emelist--> <!--msthemelist--> <!--mstheme--> If the above procedure cannot be followed, permission of Commissioner is required [rule 16(3)]. - Reply By sv bhasker - The Reply = Thanks for the reply sir. But it appears that Rule 16 will apply to goods manufcatured in India as it talks of duty paid at the time of removal. You may please see 'time of removal' is de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fined under Section 4 of CE Act,1944. - Reply By Rishabh Singhvi - The Reply = Dear Sir, I do not think we can resort to Rule 16 where goods were export under LUT and re-imported for repair purposes since there was no duty paid at the time of removal. However where at the time of re-import I have paid import duty on the goods then I have to treat this as any other input and claim CENVAT cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit under Cenvat Rules. Rule 16 does not give benefit of credit of import duty paid on removal. Therefore you may not get credit under CENVAT rules where the repair does not amount to manufacture. Regards, Rishabh - cenvat credit on re-imported goods - Query Started By: - sv bhasker Dated:- 20-9-2011 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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