That's Guy I am After
WHEN we reported the amendment in ?31.05.2010, we got a mail from a concerned Netizen, “it is not clear of the intent of the department in amending notification no 42/2001 -- so, how should the exporter export their exempted goods -- are we saying that no bond/lut would be required at all -- and if so, how does that stop them availing cenvat credit and seeking refund which the high court has apparently granted ... DDT has mentioned that what the Board probably wants to achieve ... is to deny Cenvat .... . But is that coming out sir and if so , how ... "
I replied to him,
"even before the amendment, there was no requirement of bond or LUT for export of exempted goods. All that some exporter - manufacturers were trying to do was give an LUT even when it was not required, to get over the requirement of Rule 6(6)(v) of the Cenvat Credit Rules
Now let us see the sequence.
As per Rule 19 of the CE Rules, goods can be exported without payment of duty, subject to conditions and procedure which are notified by Notification No. 42/2001. One of the conditions of Notification 42 is that the exporter shall execute a bond/LUT. The restriction on cenvat credit is not applicable for goods cleared for export under bond. Refund of cenvat credit is allowed under Rule 5 of CCR when goods are cleared for export under bond or LUT. Even the Refund Application requires a certificate that they are not able to utilize the credit on inputs or input services used in the manufacture of final products cleared under bond or LUT.
To get the refund, clearance under bond or LUT is a must. Bond and LUT is required under notification No. 42/2001 and now exempted goods will not be allowed to be cleared under Notification aNo. 42 and - so no refunds!
There was this guy who went to a brothel, and specifically asked for a lady who had the clap. Naturally, nobody offered, but seeing the desperation on the guy's face, and the glitter of the green bucks, an oldy consented. After the act, she asks why? Say he. “I want to get it, so I can give it to my maid, she'll give it to father, he'll give to mother, she'll give to milkman, he'll give to the pastor's girl, she'll give it to the principal, and THAT'S THE GUY I WANT TO FIX FOR GIVING ME LOW GRADES.”