Rahul (Manager) 08 May 2013

Purchase of rm without payment of duty for domestic sale

Can we purchase raw material availing Central Excise (Removal of Goods at Concessional Rate of Duty for manufacture of Excisable Goods) Rules 2001 and may sell the manufactured finished goods in the domestic market on payment of duty? As per said rule, we can purchase subject to the condition of submission of bond to the Asstt. Commissioner/Dy. Commissioner of C. Excise but there is no such bond available in the manual. Kindly advise on the above?

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2 Replies

Ramesh Chandra Verma (advocate) 26 May 2013

Under Notification No. 43/2001-CE,NT, dt.26.6.2001, RM can be procured only when it is used in the manufacture of goods(even non excisable) meant for export.

R C Verma

Rahul (Manager) 27 May 2013

Thanks Sir but as central excise (removal of goods at concessional rate of duty for manufacture of excisable goods) rules 2001 alongwith Notifn. no. 34/2001-CE (NT) dated 21.06.2001 (duly amended upto date) states that material can be procured whereas the said rule & notn. is specifically not for the procurement of goods for export purpose.  The Notn. No. 43/2001 is specifically for the manufaturers who can purchase raw material without/concessional rate of duty from their supplier which further will be exported by the principle manufacturer but we wish to procure raw material without payment of duty as explained in the said rule/notification and after doing manufacturing activity we shall remove on payment of duty as applicable.

Kindly help as stated above.

Regards/Rahul