Subrata Chakraborty (Manager (Comm.)) 11 July 2014

Clearance of raw materials as such

Dear Experts,

We are an R & D based manufacturing unit. Periodically raw materials components use to change. Because of this some, raw materials are not being used for a long time. We want to clear these as such. We have got a customer who is a Merchant Exporter and wants to purchase these against CT 1 and and Form H for further export. Can we clear these against CT 1 without excise duty?

Dear Experts, We are a manufacturing unit. As we are an R & D based company, Raw Material components use to change from time to time. As a result, some Raw Materials are not being used for a long time. We want to sale these as such. We have got a customer who is a Merchant Exporter and wants to purchase this against CT 1 and Form H for further export. Can we clear this against CT 1 without Excise Duty?

Read more at: https://www.caclubindia.com/forum/clearance-of-excess-raw-materials-as-such-297797.asp#.U7_mZUDc15s

Reply Follow

3 Replies

Arun Kumar Singh (Advocate) 24 September 2015

Yes, you can supply the goods without payment of excise duty under CT-1 to merchant exporter.

Ramesh Chandra Verma (advocate) 19 October 2015

CT1 can be used only for clearance of finished excisable goods and not for input. Pl. go through notification No.42/2001(CE). DT 26.6.2001

Suryanarayana Sathineni (Consultant in Indirect Tax Matters) 22 January 2016

According to me the cenvatted inputs can be cleared as such for export under Bond /LUT without reversal of duty . In this regard you may also refer CBEC circular Circular No. 283/117/96-CX dated 31/12/96. In terms of this circular, I feel, you may also export the same under CT1.

Regards

surya