Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi- 110011
Policy Circular No 9 (RE-2013)/2009-14
Dated: 30th October, 2013
To
All Regional Authorities
All Development Commissioners, SEZ
All Export Promotion Councils/Commodity Bodies
Subject: Clarification on requirement of CENVAT declaration as per PN 35 dated
01.03.2011.
Representations have been received from trade and industry seeking
clarifications relating to declaration prescribed under
Public Notice No.35,
dated 01.03.2011. Issues raised in these representations have been examined.
- Para 8.5 of the FTP provides as follows:
“Similarly, supplies will be eligible for deemed export drawback in terms of
para 8.3(b) of FTP of Central Excise duty paid on inputs/components, provided
CENVAT credit/rebate has not been availed of such duty paid by supplier of
goods. A declaration to this effect, in Annexure III of ANF 8, from supplier of
goods, shall be submitted by applicant. Such supplies shall, however, be
eligible for deemed export drawback on custom duty paid on inputs/components”.
- As required under Para 8.5 of FTP, applicant has to give declarations
regarding non-availment of CENVAT credit/rebate, as given in
Public Notice
No.35, dated 01.03.2011.
- Accordingly, deemed export drawback, in terms of Para 8.3(b) of FTP,
including as per Column B of All Industry Rate of Duty Drawback under Duty
Drawback Schedule of Department of Revenue, is not admissible if facility of
CENVAT credit/rebate has been availed. This is because if the CENVAT
facility/rebate facility has been claimed, then central excise duty component on
the inputs is already compensated. However, if basic custom duty has been paid,
then same is refundable as Para 8.5 of FTP clearly prescribes “such supplies
shall however be eligible for deemed export drawback on custom duty paid on
inputs/components”. Such basic custom duty paid can be taken back, as brand rate
of duty drawback, based on actual duty paid documents, as per procedure
prescribed in Chapter 8 of FTP and Chapter 8 of HBP Volume-I.
- All Industry Rate of Duty Drawback, as notified by Department of Revenue,
wherever admissible, also includes service tax component on input services.
While giving a declaration for non-availment of CENVAT credit, applicant has to
ensure that it has also not claimed CENVAT credit on service tax on input
services. While making an application, applicant must ensure that it does not
claim double benefit of CENVAT credit and duty drawback.
- This issues with the approval of DGFT.
(Jay Karan Singh)
Joint Director General of Foreign Trade
E-mail:jaykaran.singh@nic.in
(F.No.01/92/180/85/AM-12/PC VI)