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.