Sub : Export
of products under DEPB scheme, manufactured and / or exported in terms of
Clause (b) of sub Rule (1) of Rules 12 and 13 of Central Excise Rule 1944
Vide general condition at Sr.
Nos.1 (e & f) incorporated in schedule of DEPB rates, it had been provided
that the rates of DEPB shall not be applicable to export of commodity or
product if such commodity or product is :
a. Manufactured
and / or exported in terms of clause (b) of sub-rule (1) of Rule 12 of the
Central Rules, 1944;
b. Manufactured
and / or exported in terms of clause (b) of sub-rule (1) of Rule 13 of the
Central Rules, 1944;
It appears that the above condition had been incorporated
on the grounds that similar condition appears in Duty Drawback Rules at sr.No.3
(xiii).
The main grounds for disallowing Duty Drawback on
the export goods manufactured in terms of Rule 12 (1)(b) and 13 (1)(b) of
Central Excise Rules 1944, were s under :
a.
The excise duty on input material is not paid or rebate is
claimed at the input stage itself.
b.
Since the goods have been supplied by indigenous
manufacturer, there is no insistence of custom duty also.
However, this condition was relaxed vide CBEC Circular
Nos.98/2000 dated 29.11.2000 and 3/2001 dated
16.1.2001 in respect of items for which All Industry Duty Drawback
rates are fixed. This was due to the
reason that while fixing All Industry Duty Drawback rates, average import
content in country is taken into account as against the actual import content
in manufacturing for fixing the Brand Rates.
In terms of para 4.37 of Hand Book of Procedures
duty credit under DEPB scheme is calculated by taking into account the deemed
import condition of export product as per SION and basic custom duty payable on
such deemed import. Hence the scheme
has a distinctive difference with Duty Drawback scheme for rebate of custom
duty.
In view of above, the condition at para 1 (e) &
(f) appearing at general condition for DEPB rates have been withdrawn vide PN No.6/2002
dated 12/04/2002 .
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