Excise Clearance for Exports

Topics: International trade, Excise, Export Pages: 19 (6283 words) Published: February 6, 2011
I. Introduction to Excise Duty
1. Features
2. Chargeability of Excise Duty
i. Goods
ii. Manufactured or produced
iii. Domestic Production
iv. For home consumption
v. Excisable goods
vi. Marketable
3. Types of Excise Duty
i. Cenvat
ii. Special excise duty
iii. Additional excise duty
iv. Cesses
4. Valuation for Excise
i. Tariff value
ii. Maximum retail price
iii. Transaction value.
5. Registration
i. Need
ii. Procedure
6. Despatch of Excise Goods

II. Excise clearance for Export goods
1. Export Without Payment of Duty
i. Conditions
ii. Documentation
iii. Removal of Goods at place of despatch
iv. Clearance at port of export
v. Proof of Export
2. Export Under Claim of Rebate
i. Conditions
ii. Procedure for Clearance
iii. Claim of Rebate
3. Export With Duty Unpaid on Inputs
i. Conditions
ii. Procurement of inputs
iii. Manufacture in bond
iv. Procedure for Export
4. Export under Rebate of Duty on Inputs
i. Where not available
ii. Procurement of Material
iii. Manufacture in Bond
iv. Export and Claim of Rebate

Central Excise Duty is an indirect tax levied on goods manufactured in India for home consumption. When the goods manufactured in India are exported, they are exempt from excise duty. Generally, manufacturer of commodities is responsible to pay duty to the Government. This indirect taxation is administered through an enactment of the Central Government viz., The Central Excise Act, 1944 and other connected rules- which provide for levy, collection and connected procedures. The rates at which the excise duty is to be collected are stipulated in the Central Excise Tariff Act, 1985. It is mandatory to pay Central Excise duty payable on the goods manufactured, unless exempted, for e.g. duty is not payable on the goods exported out of India. Further various other exemptions are also notified by the Government from the payment of duty by the manufacturers. Detailed procedures have been prescribed to ensure that goods cleared and got exemption from excise are actually exported out of India.

Central excise duty is a tax levied on the production or manufacture of goods in India, intended for domestic consumption. Entry 84 of List I of the Seventh Schedule of the Constitution of India, read with Article 246, empowers the Central Government to levy duties of excise on tobacco and other goods manufactured or produced in India except alcoholic liquors for human consumption, opium, narcotics, etc., but including medical and toilet preparations containing alcohol, opium or narcotics. Power to levy excise duty on alcoholic liquors, opium and narcotics is vested with the State Governments under Entry 54 of List III of Seventh Schedule to the Constitution. The law governing central excise is contained in the Central Excise Act, 1944. Section 3 of the Act, known as the charging section, empowers the central government to levy and collect a duty of excise on all excisable goods and at the rates set forth in the Central Excise Tariff Act, 1985.

2. Chargeability of Excise Duty
By way of summary we may say that excise duty is payable on movable goods manufactured or produced in India for home consumption provided they are included in schedules to Central Excise Tariff Act, 1985 and are marketable. A brief description of the different requirements of the above definition follows. i. Goods

The word ‘goods’ is not defined in Excise Act. By reference to the definitions in other enactments like Sale of Goods Act and the description in the Excise Tariff Schedule, it can be easily inferred that only movable goods are liable to excise. Immovable properties fall outside its purview. ii. Manufactured or produced

Excise duty can be levied only for manufacture or production. Manufacture...
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