Conditions and Limitations :
Conditions and Limitations subject to which rebate of duty on excisable materials used in the manufacture of goods exported to any country other than Bhutan is available:
(a ) Rebate can be claimed on export of all finished goods ;whether excisable or not;
(b ) Any process not amounting to manufacture will also be eligible for the benefit of rebate
(c ) Benefit of input stage rebate is allowed only to a manufacturer exporter and not to merchant exporter.
(d ) No rebate of duty paid on capital goods.
But , in the following situations Input stage rebate is not available-
(a ) Where duty drawback is claimed
(b ) Where CENVAT Credit is aviled
(c ) The market price of goods is less than the rebate amount
(d ) The amount of rebate admissible is less than Rs.500
Further , the procedure to be adopted for claiming rebate of duty on inputs is :
(a ) Filing of declaration
(b ) Verification of input –output ratios
(c ) Procurement of materials
(d ) Removal of materials or partially processed materials for processing
(e ) Procedure for export of finished goods under ARE-2 application
(f ) Presentation of claim of rebate.