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Acceptance of Self-declaration as to the Non-availment of Cenvat Facility
for Extending the Duty Drawback
Customs
Circular No. 8 dated 17th February 2003
Attention is invited 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 accrue 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 the 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 do not avail
/ have not availed Cenvat 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-I 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-I shall continue.
6.
Suitable public notices for information of the Trade and standing orders
for guidance of the staff may kindly be issued accordingly.
7.
The receipt of this Circular may kindly be acknowledged.
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