Instructions regarding Value/ Quantity Based Advance Licence
Circular
No. 20 dated 8th March 1995
Your
attention is invited to Ministry's instructions of even number dated the 4th
January, 1995 (Circular N0. 1/95) and Subsequent telex dated 13th January, 1995
regarding filing of Ar-4 along with the Shipping Bills.
2.���� Situation in which Modvat certificate not
required.
On re-examination of above instructions, it is further clarified
that in the following Situations, certificate regarding non-availment of
benefit of Modvat under Rule 57-A (Rule 56-A since rescinded) of the Central
Excise Rules, should not be insisted upon: -
(i)������ The
export goods which are non-excisable i.e. goods which are not specified in the
Schedule to the Central Excise Tariff Act, 1985; or
(ii)����� Goods which are
unconditionally exempted from payment of Central Excise duty; or
(iii)�� Non-modvatable
goods i.e. export goods (final products) which are not specified under the
Notification issued under Rule 57 A of Central Excise Rules.
3.���� Where the export goods are manufactured
by/procured from SSI Unit:
Where the export goods are claimed to have been manufactured is SSI
Unit, or procured by a merchant exporter from SSI Unit, i.e. the Unit is
working under Central Excise Notification No. 1/93-CE dated 28.2.1993 availing
total duty free concession upto Rs. 30 lakhs, the exporter shall furnish the
necessary declaration on/with the Shipping Bill at the processing stage. Such
exporters would produce the attested acknowledged copy of the Declaration filed
by the SSI Unit with the Jurisdictional Assistant Collector in lieu of the
AR-4. Instruction of goods/ logging of Shipping Bills would mutatis-mutandis
apply to this above document also.
However, in Notification No. 1/93-CE, SSI Units have also been given
an option to avail Modvat. SSI Units availing Modvat would be paying excise
duties and therefore such units would be clearing their export goods under AR-4
procedure. The existing instructions regarding scrutiny of shipping Bill/ AR-4
and logging the DEEC Books towards discharge of Export Obligation, would apply
to these cases also.
4.���� Certificate regarding non-availment of
benefit of Rule 12(1)(b) and 13(1)(b) (old Rules 191-A/ 191-B):
All exporters (manufacturers/ Merchant Exporters) exporting goods,
which are specified for the benefit of Rules 12(1)(b) and 13(1)(b) (old Rules
191-A/191-B) in term of Central Excise Notification in force for such
concessions must be required to produce a certificate regarding non-availment
of the said benefits. Those export goods which are manufactured by SSI Unit
working under Rs. 30 lakhs exemption limit or exporting unconditionally
exempted goods, shall also produce a certificate or non-availment of said
Rules. Where the goods are not exported under AR-4 (claim for rebate), this
certificate will be insisted upon at the stage of logging of the DEEC Book in
respect of each shipment before endorsing of the DEEC Book for discharge of
Export Obligation. In the absence of the requisite certificate, the shipment shall
not be accounted towards discharge of Export Obligation.
Instructions contained in Telex F. No. 605/ 1/ 95-DBK dated
12.1.1995 stand amplified on the points.