Excise duty refund conundrum for export-oriented units

The Government issues several notifications, which are followed by clarifications. The clarifications are circulated with the objective of stating the background and objective for issuing the notification. Sometimes there are clarificatory circulars, which are then followed by legislative amendments. Whether issued before or after, these circulars achieve the objective of uniform application of the law, and relief from ambiguity or oppressive interpretation.One such notification, and associated provisions, that requires clarity is with respect to central excise duty waiver benefit to 100 per cent export-oriented units. Currently, there is a debate with regard to the nature of this notification — whether it is a full and unconditional exemption notification or if it is optional. Several field formations have adopted the view that this notification is full and unconditional, not leaving any scope for exporters to pay central excise duty.

Source : The Hindu Business Line