Re-export of imported goods due to defect
Querist :
Anonymous
(Querist) 13 May 2010
This query is : Resolved
We have imported the goods on payment of Customs Duties. We have availed the cenvat. Is there any necessary to pay/reverse the cenvat amount as if domestic clarances ?
Basing on the Board circular 283/1997 and 345/2000 the importer need not to reverse the cenvat. Those goods will be treated as exports.
Cenvat Rules 3(5) is not applicable for exports. This issue will not applicable as ' as such removal
Sumit Batra
(Expert) 13 May 2010
it depends on why u r re-exporting the goods. If its an export to some other person (other than the person from whom you purchased) then case would be different. However, if the goods are being returned, then definitely you need to reverese the credit.
Querist :
Anonymous
(Querist) 31 October 2010
YOu are well aware what ever the goods we are purhcasing in India the original seller/manufacturer is clearing the goods on payment of duty. If we are intended to return these goods due some reasons then we should reverse the cenvat whatever taken as per the Sub rule 5 of Rule 3. In the case of imported goods we need not to do the so because the duty of CVD or Basic customs duties have been paid by us finally the duty shoud be rest with us. In the Case of Videocon case Tribunal judgement is very clear. We need not to reverse the duty at the time of export of goods. As far as the exports are related, goods can be removed for export under bond or on payment of duty under calim for rebate. There is no condition that these goods are returning to the orginal seller or to a different. If it is a such case all imported goods can not be exported to any other customer in abroad without payment of duty.
2010-TIOL-1305-CESTAT-MAD
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal No.E/229/2009
Arising out of Order-in-Appeal No.9/2009-CE Dated: 8.1.2009
Passed by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Coimbatore
Date of Decision: 19.4.2010
ROOTS INDUSTRIES LTD
Vs
COMMISSIONER OF CENTRAL EXCISE, COIMBATORE
Appellant Rep by: Shri K Subash Chandran, Adv.
Respondent Rep by: Shri C Rangaraju, SDR
CORAM: Jyoti Balasundaram, VP
Central Excise – CENVAT Credit – Whether cenvatted inputs could be removed for export under bond or whether on payment of an amount equal to credit availed – Issued stands settled in favour of the assessee by the CESTAT.
Appeal allowed.
Case law referred:
1. Videocon International Ltd. Vs CCE Vadodara (2008-TIOL-2781-CESTAT-AHM) … … … Followed (Para 2)
FINAL ORDER NO.449/2010
Per: Jyoti Balasundaram:
The issue in dispute in the present appeal is as to whether cenvated inputs could be removed for export under bond or whether they could be removed as such only on reversal of an amount equal to credit availed on receipt thereof, i.e. on payment in terms of Rule 3 (5) of the CENVAT Credit Rules, 2004.
2. On hearing both sides, I find that the issue stands settled in favour of the assessees by the Tribunal’s decision in Videocon International Ltd. Vs CCE Vadodara [2009 (235) ELT 135] = (2008-TIOL-2781-CESTAT-AHM) holding that capital goods could be cleared as such for export under bond, in the light of CBEC letter No.345/2/2000-TRU dt. 29.8.2000. Following the ratio of the above decision, I set aside the impugned order by which Rs.28,196/- was confirmed as duty, and penalty of Rs.10000 imposed, and allow the appeal.
(Dictated and pronounced in open court)
R.Ramachandran
(Expert) 31 October 2010
Dear Anonymous,
Please only tell your fact situation first, and then place your query.
According to you, you have imported the goods you are entitled to take cenvat credit of the CVD paid, which you have taken.
But without revealing any further fact situation, you straight away pose a question "Is there any necessary to pay/reverse the cenvat amount as if domestic clarances?"
Pleas clarify in which circumstances the question of reversal or non-reversal of Cenvat credit arises in your fact situation?
Querist :
Anonymous
(Querist) 03 November 2010
The goods which were imported are not sutiable to our requirements. Hence, we have re-exported to the original seller to that particular place of seller. Under LUT now the department is insisting us to pay the dury. Is it correct.
R.Ramachandran
(Expert) 03 November 2010
Dear Anonymous,
Please state whether you claimed refund of customs duty paid in respect of the goods (found to be defective) re-exported by you?
Querist :
Anonymous
(Querist) 04 November 2010
We have not claimed refund of Basic customs duty and Customs cess because the Re-export/Return was taken place after 6 months.
R.Ramachandran
(Expert) 04 November 2010
Dear Anonymous,
Since you have not taken refund of the duty, and I assume that you have also not claimed duty draw back benefit. In such a case, you need not reverse the cenvat credit of the CVD taken by you in regard to the original imported goods. If the department is insisting, then you have to fight it out.
