North East exemption - no rebate
Nearly two years ago, we carried an article "Region specific exemption and rebate of duty - Having the cake and eating it too!!".
Please see
15.01.2007
10.04.2007
11.04.2007
DDT 591 12.04.2007
DDT 592 13.04.2007
Area-based exemption - Double benefits theory may put exports in double jeopardy !
The issue is simple. The area specific exemption notifications work on a system of duty payment and later the duty paid in cash is refunded. Now if these duty paid goods from North East are exported, can the exporters claim rebate? First the board said they cannot; then the Board said they can and now the Board has issued a notification that in case of export of goods manufactured by availing the area specific notifications, no rebate will be allowed. It is no more the opinion of the board; it is now LAW!
TIOL had covered the issue extensively covering the pros and cons, as all the above references would show. We rounded up the discussion with one of our illustrious writer's quip, Let us talk some basics. I am a manufacturer in north east clearing in DTA and exporting on payment of duty. At the end of the month I pay total duty liability by 5th of next month and paid some amount in PLA after exhausting cenvat. How do I know whether the exports suffered duty from Cenvat or PLA ?
Notification No. ,., Dated September 17, 2007