CA Bhavin Mehta
There can be a situation where units are fully exempted from payment of Central excise duty as the value of the clearances for home consumption is less than 1.5 crore. However, total value of clearances (domestic plus export) is more than 4 crore. Let’s take an example for better understanding
|Year||Clearance for home consumption||Clearances for export||Total value of clearances|
|2014 – 15||1 crore||64 crore||65 crore|
|2015 – 16||1.20 crore||80 crore||81.20 crore|
As per PART – III of the CBEC Manual & Para No. 3.3 Serial No. 6 Instruction D.O. F.No. B-1/3/2011-TRU, dated 25-3-2011, units manufacturing exclusively for export & which are fully exempted from payment of duty by notification granting exemption based on value of clearances for home consumption, will not be required to take Central excise registration.
Let us understand the procedure as laid down in the CBEC manual that has to be followed, the details of which are as under: –
Documentation to be prepared
Proof of Export – Details to be submitted by the assessee for Proof of Export –
♠ For Direct Exports
i. Self Attested Photocopy of Shipping Bill (EP Copy),
ii. Customs Attested Copy of Bill of Lading
iii. Foreign Exchange Remittance Certificates
♠ For Export through Merchant Exporter
i. Self attested photocopy of document prescribed by the Sales tax Department i.e H-Form or its equivalent.
Proof of export should be submitted to the range officer within a period of 6 months from the date of clearance of goods from the factory of production.
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