Registered Member on
This information comes from my own knowledge.
FORM CT-1 pertaint to Certificate for procurement of excisable goods for export without payment of duty.
Visit http://dateyvs.com/cenex06.htm…, you can get access to "Export Procedures in Central Excise" In relation to Central Excise and customs, following are the concessions/incentives for exports : (1) Exemption from duty on final products (or refund of duty paid). (2) Exemption/Refund of excise and customs duties paid on inputs. This would answer your query.
Please go through this clarification http://22.214.171.124/search?q=cache…
Supplies under Deemed Exports be relieved from Excise burden for non-utilisation by the buyer
Though excise duty is not applicable for supply under deemed export, but as per procedure against CT-3 form given by the buyer, the goods are removed under AR-3 without payment of excise duty. However, this AR-3 is required to be countersigned (after receipt at buyer's end) by the concerned jurisdictional Excise authorities. Only on receipt of the counter signed AR-3 the seller is discharged of duty liability burden. Due to this the seller are not in a position to sale under deemed exports without sureties from the buyers towards excise duty burden. The buyer are not willing to give such sureties since if they import directly they are exempted from customs duty, additional duty and SAD whereas when they take supplies from domestic source CST is being charged. In addition, if they have to provide sureties for excise duty, there is no benefit on DTA procurement.
Therefore, it is suggested that once supplies are made under CT-3 the burden of excise duty, if any, for non-utilisation may be on buyer and not on seller.
Clarification: When goods are supplied without payment of Central Excise duty on the strength of CT-1/CT-3 under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture Excisable Goods) Rules 2001, the supplier’s liability to pay Central Excise duty gets extinguished no sooner the goods leaves his premises. There is no requirement of obtaining a re-warehousing certificate. In all situations the responsibility for payment of duty of such goods after they have left the supplier’s premise shall be on the buyer. It is only in the case of supply to EOUs that both the supplier and the buyer (EOU) are jointly and/ or severally liable to pay duty on the said goods if lost in transit. However, once the goods are received by the EOU then in such case also the responsibility of payment of duty rests upon the buyer (EOU).
Under Rebate scheme one first pay Excise Duty and after submitting proof of export claim the duty involved from the department. Under CT-1 first Bond is executed mostly without bank guarantee and goods exported without payment of duty.
The bond shall be equal to the duty amount involved and exporters shall furnish surety equal to full bond amount or security equal to twenty five percent. (25%) of the bond amount.
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(Rated by 9 Council Members)