Question

Write short notes of the following.

Procedure related to excise clearance of goods.

Answer 1

Excise duty is the amount payable on raw materials used in the manufacture of goods. Exporters are required to pay an excise duty and get excise clearance. In order to get excise clearance, a manufacturer must first submit an invoice to the regional excise commissioner. The excise commissioner then examines the invoice and, if satisfied, issues the excise clearance to the manufacturer. However, in many cases, the government may either exempt a manufacturer from payment of excise duty or refund it after payment, if the goods are meant for export. The basic objective of such exemptions is to promote the export of goods and help Indian exports compete in the world market.