Circular No. 61dated 17^th November 1997

An issue has been raised regarding the procedure for the Customs House to verify whether the exporter has availed central excise rebate on inputs under rules 12(1) (b)/ 13(1) (b) of the Central Excise Rules, 1944.

It is clarified that the goods which are purchased by a merchant exporter from the open market would not have availed of benefits of input rebate under Rules 12(1)(b)/ 13(1)(b) of the Central Excise Rules, 1944. Under the Central Excise Rules, these benefits can be availed only if the AR-5 procedure, as laid down therein, is followed. Where the manufacturer exporters are following AR-4 procedure, then, the fact of availment of the said benefits, is required to be indicated on the AR From, and an AR-5 from would also be enclosed therewith for claim of benefit under Rules 12(1)(b)/ 13(1)(b). In other cases, where AR-4 procedure is not followed because the exporter is not under Central Excise Control, but the exporter has availed or Rules 12(1) (b)/ 13(1)(b) benefit, the consignment has to be cleared on an AR-5 form, which is evidence of availment of the said benefits under Rules 12(1)(b)/ 13(1)(b). The Sixtuplicate copy of AR-5 from accompanies the consignment to the dock for the purpose of customs examination and is available in a the Customs House. The Customs House should be able to link this copy of AR-5 to the relevant shipping bill, and verify whether the said benefits have been availed of or not before payment of drawback.