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Rebate of Excise duty on export of goods

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Rebate of Excise duty on export of goods, These article mainly talks about the rebate or the refund of the duty which was paid in case of the goods are exported. These exemption is available to encourage the people for producing more and exporting the same to the other country. This would develop the nation. The procedure for claiming the refund, documents required and many other things are mentioned here. Now check more details regarding “Rebate of Excise duty on export of goods” from below…

Rebate of Excise duty on export of goods

Rebate of Excise duty on export of goods

Rebate on Excise duty paid:

There are various exemptions available under excise when the goods are exported to the outside country then the excise duty paid on the goods shall be exempt as the export would generate the foreign currency in the country which would be develop the nation. So there are rebate of two things which can be granted as exemption.

  1. Duty paid on the exported goods
  2. Duty paid on the raw materials used for the production of such exported goods.

These exemptions are available as per the Rule 18 of the Central Excise Rules, 2001. These exemptions are subject to some of the conditions.

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Procedure for Rebate of Duty paid:

1. Firstly the exporter needs to file the declaration with the Assistant Commissioner or the Deputy Commissioner of Central Excise along with the relevant facts and the figures, with the proper evidences of the goods to be exported, duty paid challans, raw materials appropriately taken.

2. Then the Commissioner would verify the goods and the evidences provided by the exporter and if he deems fit, then would grant the permission for the goods to be exported.

3. Further the exporter would acquire the goods and the raw materials required for the export of goods and would get the goods acquired with the duty paid and the invoice value raised.

4. Then the goods would be processed with the raw materials so acquired and would get the finished goods ready for the export.

5. Then the exporter would comply with the procedure for exporting the goods as per prescribed laws and Act and would make the export done.

6. After the export is done, now the exporter will apply for the rebate of the goods with the appropriate commissioner with the following documents:-

(a) In case of Rebate of Duty paid on goods exported:-

    1. Original Copy of Form ARE-1
    2. Proof of the duty paid
    3. Invoices raised under Rule 11
    4. Shipping Bill and the Bill of Lading (Self Attested)
    5. Request letter for the rebate of the goods (On Letterhead)
    6. Any other document which may be called upon

    (b) In case of Rebate of Duty paid raw materials for the purpose of exported goods:-

      1. Original Copy of Form ARE-2
      2. Proof of the duty paid or adjusted in the accounts
      3. Invoice of the purchased goods
      4. Shipping Bill and the Bill of Lading (Self Attested)
      5. Request letter for the rebate of the goods (On Letterhead) (Details such as dates, invoice numbers, amount of rebate, etc)

      Refund of the duty erroneously refunded:

      There has been the clause in the Act, where the person has been erroneously given the refund, then the government can demand the refund back within 6 months and within 5 years if the refund was given with the intention of fraud or suppression of the facts.

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      About Yash Shah

      Yash Shah is passionate article writer and has written more than 100 articles in the field of Finance, Insurance, Stock Market, Company Law, Auditing, Taxation and many others. In case of any queries or suggestions, you can reach the author @ [email protected], you can also catch him on facebook @ yashshah299

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