CHAPTER 8

EXPORT UNDER CLAIM FOR REBATE

Part-III

SPECIAL PROCEDURE FOR STORE FOR CONSUMPTION ON

BOARD AN AIRCRAFT ON FOREIGN RUN
1. Introduction

1.1 A separate rebate procedure has been notified in respect of supplies of mineraloil products falling under Chapter 27 of the First Schedule to the Central Excise Act, 1985(5 of 1986) exported as stores for consumption on board an aircraft on foreign run.

2. Conditions of rebate

2.1 In respect of 7 products falling under the aforementioned Chapter, rebate has tobe granted at a reduced rate. The rate for reducing rebate is specified in Notification no.40/2001-CE(N.T.), dated 26.6.2001.

2.2 Earlier, the rebate was limited, by notification, to all countries, which did not haveland frontiers with India, except Pakistan, Bangladesh, Myanmar and Bhutan (thoughthese countries have land frontier with India). But this facility was available by executiveinstructions to all countries, including the countries, which were not appearing in thenotification for grant of this facility. The Government has decided to extend this facility toall countries, without any restrictions about the countries having land frontier. The suppliesof ATF and other listed items (supplies to aircraft going to Nepal, Afghanistan andBhutan) will be allowed in the same manner as it is allowed to supplies of ATF and otherlisted items to aircraft going to other foreign countries, including the payments orremittances.

2.3 The products as remain on board an aircraft after completion of an internal flightbut prior to its reversion to foreign run, the rebate for which shall be granted withoutproduction of documents evidencing the payment of duty thereon. The proper officer ofCustoms shall certify in the manner specified by the Commissioner of Central Excise thequantity of products left on board for determining the quantum of rebate therefor.

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