Public Notice No.50PN 1997-2002 dated the 27th October, 1997

HB of procedure Amended -Domestic sale by EOUs etc.-
Reimbursement of CST on supplies to EOUs

In exercise of powers conferred under paragraph 4.11 of the Export and Import Policy, 1997-2002, as notified in the Gazette of India extraordinary, Part-II-Section 3- Sub-section (ii) vide S.O. No. 283(E) dated 31.3.97, the Director General of Foreign Trade hereby makes following amendment in the Handbook of Procedures (Vol.1), 1997 -2002;

1. In the first sentence of Paragraph l h) of ‘DTA SALE ENTITLEMENT of Appendix 42 as amended by Public Notice No. 36dt. 27th august, 1997, the words and expression 'except as provided in paragraph II(ii)' shall be corrected to read as ‘except as provided in paragraph II b)'.
   
   
2. Appendix 43 (excluding the Annexures) shall be substituted by Annexure A to this Public Notice.
   
   
3. In Annexure 1 to Appendix 43, the opening sentence shall be substituted by the following;
   
   Application for claiming reimbursement of Central Sales Tax against 'C' Form for the goods brought into the bonded Premises of the EOU/EPZ/FTZ/EHTP/STP units.
   
   
4. In Annexure 1 to Appendix 43, “EHTP/STP" shall be inserted in S.No; 3(a) after the expression "EOU/EPZ".
   
   
5. In Undertaking and Declaration of Annexure 1 to Appendix 43 "EHTP/STP" shall be inserted in paragraph (c) after the expression "EOU/EPZ".
   
   
6. The existing Annexure 3 of Appendix 43 shall be deleted and substituted by Annexure B to this Public Notice.
   

This issues in public interest.

Sd/-
(S.B. Mohapatra)
Director General of Foreign Trade

Issued by :
Government of India
Ministry of Commerce, New Delhi
(F.No. PRU/AS/97098/CH/9/1) ________________________________________________________________________________________________

Appendix -43

Procedure to be followed for reimbursement of Central Sales Tax (CST) on supplies made to Export Oriented Units (EOUs) and units in Export Processing Zones (EPZs), Free Trade Zones, Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) from Domestic Tariff Area (DTA).

Note : Please see para 9.14 of the Policy and para 9.29 of this Handbook

The procedure given hereunder shall be applicable for reimbursement of Central Sales Tax.

2. The Export Oriented Units (EOUs) and units in Export Processing Zones (EPZs), Free Trade Zone (FTZ), Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) will be entitled to full reimbursement of Central Sales Tax (CST) paid by them on purchases made from the Domestic Tariff Area (DTA), for production of goods meant for export on the following terms and conditions:
   
   
   1. The supplies from DTA to EOU/EPZ/FTZ/EHTP/STP units must be utilised by them for production of goods meant for export and/or utilised for export production and may include raw material, components, consumables, packing materials, capital goods, spares, material handling equipment etc. on which CST has been actually paid by the EOU/EPZ/FTZIEHTP/STP units.
      
      
   2. While dealing with the application for reimbursement of CST, the Development commissioner or the designated officer of EH TP/STP shall see, inter alia, that the purchases are essential for the production of goods meant for export and/or to be utilised for export production by the units.
      
      
3. The Procedure to be followed in this regard is indicated hereinafter and shall be strictly adhered to:
   
   

Procedure:

1. As soon as the goods are received by the EOU/EPZ/FTZ/EHTP/STP unit in its premisesit will be entered in the material receipt register kept for the purpose. The register must show the details of goods, quantity. the source of purchase and the C Form against which purchase is made;-etc. which will be subject to periodical check by the authorised staff of the Zone/Customs administration. A Chartered Accountant's certificate regarding the verification of the materials receipt register relevant to the claim as at Annexure-11 shall be submitted alongwith the claim.
   
   
2. The reimbursement of CST shall be admissible only to those units who get themselves registered with the Sales Tax authorities in terms of Section 7 of the CST Act, 1956 read with (Registration and Turnover) Rules, 1957 and furnish a photostat copy of the Registration Certificate issued by the Sales Tax authorities to the Zone office concerned for keeping it in the relevant file. Separate CST Registration be obtained for EPZ/EOU/FTZ/EHTP/STP unit.
   
   
3. The unit shall present its claim for reimbursement of CST in the prescribed form (Annexure) to the Development Commissioner of the EPZ/FTZ concerned or the designated officer of the EHTP/STP along with the following documents:
   
   
   1. Chartered Accountant's Certificate showing details as per Annexure-ll:
      
   2. Original invoice/bill of the supplier showing details regarding the description of goods, quantity, value, amount of CST paid etc. and the CST registration number of both the buyer and supplier:
      
   3. Photostat copy of C Form issued by the purchaser to the supplying unit with reference to the counterfoil produced by the unit. The counterfoil of C form will be returned to the unit after making suitable endorsement like 'cancelled/CST reimbursed' duly signed by the authorised officer of the Zone administration and the photostat copy will be retained by the officer for keeping in respective file.
      
   4. Original receipt (alongwith photocopy) issued by the supplier in token of having received the amount of the bill, including the CST, shall be submitted. The original receipt will be returned to the unit after making necessary endorsement thereon such as "cancelled and CST of Rs. ……. reimbursed" duly signed by the authorised officer of the Zone and the photostat copy will be retained in the concerned file. In case original receipts are not available and payment was made through bank, a bank statement indicating cheque details and Chartered Accountant's certificate reconciling the cheque details with details of the invoice of the supplier, as prescribed in Annexure- III and accompanying table, shall be furnished as proof of payment made by cheque/draft against the invoice.
      
   5. The reimbursement will be limited to the payment of CST against C Form only,
      
   6. The unit shall also intimate the name of the person/persons who are authorised by the firm to sign the C Form and furnish three copies of his/their specimen signature(s) which will be kept in the relevant file of the unit.
      
   7. The reimbursement will be made on quarterly basis. No claim for reimbursement will be normally entertained if not claimed within a period of six months from the completion of the quarter in which the claim has arisen. In exceptional cases, the Development Commissioner may consider delayed applications after satisfying that the delay was due to genuine grounds.
      
   8. The claim for CST reimbursement for the amount below Rs.1 00/- oh any single invoice will not be entertained.
      
   9. The disbursing authority for the claim of reimbursement of CST will be Development Commissioner/Designated officer of EHTP/STP who will make the payment to the units. All claims shall be subjected to pre-audit before payment.
      

Annexure-III

Chartered Accountant's Certificate and Table
I/we have examined the books of account maintained by M/s _____________and also the bank statement for the period ___________and hereby certify that:

1. The payment has been made by the said M/s _______________to the DTA suppliers in respect of goods received against the invoice(s) indicated in the table annexed hereto.
   
2. The payments have been made by cheque/draft and have been credited to the accounts of the DTA suppliers.
   
3. Such payment include the amount of CS1- Indicated in the respective invoices.
   

Neither I/we nor any of our partners is a partner/Director or an employee of the above named entity or its associated concerns.

I fully understand that any submission made in this certificate if proved incorrect or false, will render me/us liable to face any penal action or other consequences as may be prescribed in the law or otherwise warranted.

Signature & Stamp/seal of the
Signatory
Name
Membership No.
Full address

Name and address of the institution where registered.
Date:
Place:
Table
Details of Goods Brought into unit and Central Sales Tax paid during the Qauarter………………

S.No.
Name and address of the supplier
Description of goods
Bill No. and date
Quantity
Value
Date of Receipt
CST Amount paid
C Form No.
Cheque No.,
Date and Name of Bank
Nature of Goods
Bank Reference No.

Signature & Stamp/seal of the Signatory
Name
Membership No.
Full address

Name and address of the Institution where registered.

Date :
Place :

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