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'Manufacturer entitled to Cenvat Credit for duty paid on inputs'

T N C Rajagopalan 

Can freely importable capital goods cleared on payment of duty be re-exported against payment in convertible currency in terms of para 2.46 II (a) import policy? If so, can you please advise the corresponding customs notification?
There is no need for any customs notification if goods imported on duty payment are re-exported under free shipping bill. However, if you want to claim drawback of the duties paid at the time of importation, then at the time of re-export you can file a drawback shipping bill in accordance with Section 74 of the Customs Act, 1962 read with Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995. In case you have used the goods after imports, the drawback amount will be reduced at the rates given in notification no. 19/65-Cus dated February 6, 1965, as amended.

We are purchasing car spare parts assemblies and dismantling them into pieces. These dismantled pieces also go through shape and material change. Can we avail ourselves of Cenvat Credit on our purchase of spare parts, when we are charging excise duty on all our sales?
If you carry out any activity that amounts to manufacture and you discharge excise duty on the manufactured products that you clear from your unit, you are entitled to take Cenvat Credit of the duty paid on the inputs on the basis of documents prescribed under Rule 9 of Cenvat Credit Rules, 2004. In your case, the spare part assemblies are inputs and you can take Credit of duty paid on them, since you are discharging excise duty on the final products that you manufacture.

We have obtained EPCG authorisation and got it invalidated to enable procurement from domestic sources. For redemption of EPCG authorisation, we have submitted the invalidation letter in original and a duplicate copy to the authorities. Are we still required to submit non-utilisation certificate from the excise authorities of the indigenous supplier?

The application form ANF-5B for redemption of EPCG authorisations calls for only a Chartered Engineer certificate in the form given at Appendix-5C if HBP. So, I do not see why you need to submit any other document, unless you claim that the invalidation letter was not fully utilised and that to that extent you want the export obligation reduced. If that indeed is the case, the authorities would be justified in calling for any documents to satisfy themselves on the facts of the case.

In case of deemed exports, is it necessary to submit the original invalidation letter for claiming Terminal Excise Duty (TED) Refund or Duty Drawback?
The application form ANF-7A of HBP for claiming deemed export drawback and/or TED refund clearly mentions a copy of the original invalidation letter as a document to be submitted. You may refer to S.No. 23 (6) of that form for details.

Can we get TED refund on supplies to holders of advance authorisation for deemed exports?
Yes, so long as the supply is against an Advance Release Order (ARO).

First Published: Mon, September 21 2015. 14:24 IST