| Date: |
12-08-1996
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| Notification No: |
Central Excise Circular No 238/1996
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Clarification regarding problems faced by exporters of man-made fabrics/ sarees in respect of rebate claims
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Clarification regarding problems faced by exporters of man-made fabrics/
sarees in respect of rebate claims
Circular
No. 238 dated 12th August 1996
It
has been represented to the Board that in respect of export of man-made fabrics/
sarees of the description mentioned at Si. No. 5404 and/ or 5503 of the current
Drawback schedule notified under Customs & Central Excise Duties Drawback
Rules, 1995, the exporters are not getting full duty relief only to the extent
of duties suffered at yarn stage, whether it is additional duty of customs or it
is the Central Excise duties on yarn. The Central Excise duties paid at the
processing stage remains unrebated. Therefore, full duty relief can be given
only if rebate under Rule 12 of Central Excise Rules, 1944 is granted to them.
it has been requested that a clarification similar to the one issued for Cotton
Made-up articles (Circular No. 209/43/96-CX.6 dated 9.5.96) may be issued
allowing simultaneous availment of the facility of the rebate and drawback since
no double benefit would accrue to the exporters.
2.
The matter has been examined by the Board.
3.
The Drawback Directorate has reported that Central Excise duty payable at
the processing stage of man-made fabrics/ sarees has not been taken into the
processing stage of man-made fabrics/ sarees has not been taken into account
while fixing the All-Industry rates of drawback on export of man-made fabrics/
sarees falling under S.S. No. 5404 or 5503 of the Drawback Schedule.
Consequently, no double benefit will accure if rebate of excise duty paid at the
processing stage is granted to the exporter of Man-made fabrics/ Sarees. As such
this case is similar to the case of Made-up articles regarding which
clarification vide Circular No. 209/43/96-CX.6 was issued and the same can be
applied here, mutatis mutandis.
4.
In view of the above, it is clarified that rebate in respect of Central
Excise duty suffered on processing of man-made fabrics/ sarees under Rule 12 of
Central Excise Rules, 1944 is admissible even if the drawback in respect of Sl.
No. 5404 & 5503 of the Drawback Schedule is being claimed by the exporter
for the same export goods.
5.
The pending claims in this regard should be disposed of expeditiously.
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