Area-based exemption - Double benefits theory may put exports in double jeopardy !

Let us talk some basics. I am manufacturer in NE clearing in DTA and also exporting on payment of duty under rebate. The total duty laibility ( on exports and DTA sales in the month to be paid by 5th of next month) is say Rs 10,00,000. I paid Rs 8,00,000 from Cenvat and 2,00,000 from PLA. Can somebody tell how do I know whether I paid duty on the exports from Cenvat or PLA?

tax netizen 12/04/2007

 

For starters dear netizen assuming that you have to pay 10,00,000 lakhs for a given month and you have raised say 100 invoices. If you are paying 8,00,000 lakhs through Cenvat Credit A/c and the rest through PLA you will have to apportion say 80 invoices to Cenvat Credit A/c and the rest to PLA.

You cant just say that you have paid this much in Cenvat A/c and that much in PLA. You will at least do some back of the envelope calculations. A record of sorts still gets created which may not be official. So an assessee with some basic intelligence will overcome such PLA hurdles by apportioning his export rebate invoices to Cenvat Credit A/c.

After all its the paper trail that the Department will look into while sanctioning the rebate and can the department question the assessees' methodology even if this is done brazenly without public acknowledgement of his methods on paper. Its advantage assessee.


This is precisely the point. When there is a legal fiction created by the Notification whatever you(CBEC) say to undo it will get stuck. So better leave it at that. By the way as our friend Suresh mentions what has happened to the instruction of the CBEC issued prior to these instructions dated 08.12.2006 and 03.04.2007. Why is that not in the public domain? Why is the Board silent on this? Any answers from the powers that be.

santosh hatwar 12/04/2007