Chapter - 8

Part-VI

SPECIAL PROCEDURE FOR EXPORT OF TEA UNDER CLAIM OF REBATE
1. Introduction

1. In rule 18 of the Central Excise (No.2) Rules, 2001 and Notification 41/2001-Central Excise (N.T.) dated 26.6.2001, the expression “processing” has been used. It includes blending, packaging or any other operation. One problem which comes into the way is that the Notification No. 41/2001-CE (N.T.), supra, provides for procurement of goods directly from the factory of manufacture and the open market procurement is allowed only where goods are in original packed condition and the invoices are issued by registered dealers. In case of tea, condition relating to open market purchase cannot be fulfilled. Accordingly, a special procedure has been framed for export of tea bought in auctions (on which duty is paid at specific rate), under claim of rebate regard are specified below: -

2. Procedure

2.1 The exports shall be made under the provisions of notification No.41/2001-CE (N.T) dated 26.6.2001. Board’s instructions in Part-I of this Chapter may be followed mutatis mutandis.

2.2 For the purpose of export of blended/packaged tea where such blending/packaging was/is done after purchasing bulk tea from the open market or in auctions, the condition of the aforesaid notification regarding procurement of materials (tea in this case), directly from the factory will be relaxed, provided:

(i) Deputy/Assistant Commissioner of Central Excise is satisfied that the bulk tea contained in the blended/packaged tea has actually been exported and appropriate duty of excise has been paid. For this purpose, the copies ARE.2 together with Bill of Lading and Shipping Bill duly endorsed by the Customs at the place of export may be verified.

(ii) in case of tea purchased in auctions, the brokers catalogue indicating the details of the invoices on which the bulk tea was removed from the factory for home consumption on payment of appropriate duty and the broker’s contract relating to purchase of such tea is submitted along with rebate claim.

(iii) in case tea is purchased other than in auctions, copies of relevant invoices evidencing payment of duty are submitted along with rebate claim.

2.3 It shall be ensured that exporters do not claim drawback as well as rebate under notification 41/2001-CE(N.T.), supra., simultaneously.

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