| Date: |
02-09-1998
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| Notification No: |
Central Excise Circular No 417/1998
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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: |
Regarding amendment of rule 12 for substituting sub-rule (3) - implications
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Regarding amendment of rule 12 for substituting sub-rule (3) -
implications
Circular
No. 417
dated 2nd September 1998
I
am directed to draw your attention to the Central Excise 11th Amendment Rules,
1998, vide notification No. 30/98-CE (N.T.) dated 24.8.1998, whereby sub-rule
(3) of rule 12 of the Central Excise Rules, 1944 has been substituted.
It
was brought to the notice of the Board that the erstwhile sub-rule (3) of rule
12 provided that grant of rebate under clause (b) of sub-rule (1) of rule 12 and
drawback allowed under the Customs and Central Excise Drawback Rules, 1995, are
mutually exclusive. Thus, the rebate of even those excise duties, which were not
covered, by the All Industry Rate or Brand Rate of drawback of the Drawback
Rules was not permitted. To obviate the difficulty, this amendment has been
brought about so that rebate of such duties of excise, which are not included in
the all Industry Rate of Brand Rate/ Special Brand Rate of the drawback rules,
is permitted.
2.
However, while granting rebate on the materials under rule 12 (1) (b) it
must be ensured that exporters do not get drawback of such duty under All
Industries Rates or Brand Rates of the Customs and Central Excise Duty Drawback
Rules, 1995 and also no Modvat credit of Such duty has been availed of under the
provisions of Section AA of Chapter V of the Central Excise Rules, 1944.
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