Public Notice No. 43/2003, Dt. 30/04/2003

Acceptance and declaration as to the non-availment of Cenvat facility for extending the duty drawback.

1. Attention of all Exporters, C.H.A. and other concerned is drawn to the Ministry’s Circular Nos. 25/98-Cus., 34/98 Cus. and 50/98 Cus. As per the existing instructions, the exporters who avail the Central Excise portion of duty drawback in case the drawback involves both Customs & Central Excise portions, or the full duty drawback when the rate has only Central Excise allocation, have to produce a certification from the jurisdictional Deputy Commissioner / Assistant Commissioner of Central Excise certifying that they have not availed Cenvat facility in respect of the goods exported. The rationale behind this condition is that no double benefits should accure to the exporters because through the Cenvat facility as well as duty drawback, exporters are rebated the duties of Central Excise suffered on the inputs used in the manufacture of the export products.

2. There have been a large number of representations from the trade that they find it difficult to furnish the certificate from Central Excise authorities for every export consignment. This matter had been considered by the Kelkar Committee set up to examine the possibility of reforms in the Indirect Tax Administration.

3. After accepting the recommendations of the Committee, the Board has decided that henceforth the manufacturer-exporters who are not registered with Central Excise or such merchant exporters whose supporting manufacturer are not registered with Central Excise, shall not be required to furnish any certificate as to the non-availment of Cenvat facility from the jurisdictional Central Excise authorities.

4. It has been decided that instead these manufacturer exporters and merchant exporters with a supporting manufacturer shall be required to give a self-declaration that such manufacturer-exporters or the supporting manufacturers are not registered with Central Excise and that they not avail / have not availed Central facility. The form of self declaration is enclosed.

5. It is also clarified here that as regards such manufacturer exporters and supporting manufacturers who are registered with Central Excise, the fact of non-availment of Cenvat facility can be confirmed from ARE-1 which these exporters shall be furnishing. Therefore, in case of registered manufacturer-exporters and merchant exporters with registered supporting manufacturers the earlier practice of acceptance of ARE-1 shall continue.

6. Contents of this notice may be brought to the notice of all concerned and trade constituents in particular.

Sd/-
(K.K. AGARWAL)
COMMISSIONER OF CUSTOMS (G)

File No. S/10-31- DBK/2003 CFS (M)

Circular No. 8/2003-Cus dated 17.2.2003 of Government of India, Ministry of Finance & Company Affairs, Deptt. of Revenue in File No. 609/162/2002-DBK dated 17.2.2003.

Presented by eximkey.com