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Unit 5: Clearances of Excisable Goods

Notes

Notes If goods produced under free trade zones or 100% export oriented units or special
economic zone. The assessee has right to removal after paying its appropriate duty. In
some cases govt. can give right to export without payment of duty.

5. Removal of input and capital goods under CENVAT

The manufacturer credit the duty if he get the input from his supplier. Duty is paid by supplier.

Input as raw material ’! “! ’! Output as finished goods

6. Removal of goods for export

There are many rules for clearance or removal for export of goods. It deals chapter IX of Central
Excise Rules.
Method of removal

1st way
Without seal of central excise department :-
There is limited chance of export without duty but commission has the power to allow without
examination or seal.
2nd way
With seal of central excise department.
Officer of central excise department is verified that duty is paid on such goods after this he will
seal them.

Excise Clearance for Export

As a part of further simplifications and rationalisation of Excise Rules announced by the Finance
Minister, a set of Central Excise Rules, 2002 has come into effect from 1-3-2002. Under these new
rules, central excise provisions for exports (except exports to Nepal and Bhutan) have been
prescribed in Rules 18 and 19.

Procedure for Export to all countries (except Nepal and Bhutan) under Payment of
Duty

The procedure for export of excisablegoods except Nepal and Bhutan on payment of duty under

claim for rebate is governed by the provisions of Rule 18 of the Central Excise (No.2) Rules, 2001.
The conditions, limitations and safeguards are separately contained in Notification No. 40/
th
2001-CE(NT) dated 26 June, 2001.
5.2 Conditions and Limitations

There are some conditions and limitations:
(i) that the excisable goods shall be exported after payment of duty, directly from a factory or
warehouse;
(ii) the excisable goods shall be exported within six months from the date on which they were,
cleared for export, from the factory of manufacture or warehouse;

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