Cus Circular No.61/1997-DBK date 17/11/97Sub: Production of certificate regarding non-availment of MODVAT benefit under Rule 57A of the Central Excise Rules, 1944.
An issue has been raised regarding the procedure for the Customs House to verify whether the exporter has availed central excise rebate on inputs under rules12(1)(b)/13(1)(b) of the Central Excise Rules, 1944.
It is clarified that the goods which are purchased by a merchant exporter from the open market would not have availed of benefits of input rebate under Rules 12(1)(b)/13(1)(b) of the Central Excise Rules, 1944. Under the Central Excise Rules, these benefits can be availed only if the AR-5 procedure, as laid down therein, is followed Where the manufacturer exporters are following AR-4 procedure, then, the fact of availment of the said benefits, is required to be indicated on the AR-4 Form, and an AR-5 from would also be enclosed therewith for claim of benefit under Rules12(1)(b)/13(1)(b). In other cases, where AR-4 procedure is not followed because the exporter is not under Central Excise Control, but the exporter has availed of Rules12(1)(b)/13(1)(b) benefit, the consignment has to be cleared on an AR-5 form, which is evidence of availment of the said benefits under Rules 12(1)(b)/13(1)(b). The sextuplicate copy of AR-5 form accompanies the consignment to the docks for the purpose of customs examination and is available in the Customs House. The Customs House should be able to link this copy of AR-5 to the relevant shipping bill, and verify whether the said benefits have been availed of or not before payment of drawback.
Sd/-
(Sandeep Ahuja)
Under Secretary (DBC)
F.No.600/63.06/97-DBK
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