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Rebate of excise duty paid on processed textile fabrics notified under
section 3A of the Central Excise Act, 1944 - Clarification on certain issues
Circular
No. 475dated 2nd August 1999
It
has been brought to the notice of the Board that after the new levy under
section 3A of the Central Excise Act, 1944
production), the exporters of such goods were not aware as to what procedure
should have been followed. Few exports were affected by indicating/ writing on
exports documents (AR-4, Export Invoice, etc.) that the exports were under bond.
Different phrases were used with the intention that any scheme as may be
announced by the Government could not enable them to get the export benefits
under the Central Excise Rules. The question arises whether rebate claims in
such cases should be allowed.
2.
Another doubt has arisen whether merchant-exporters can file claims of
rebate or the independent processors can alone file the rebate claims.
3.
The Board has examined the matter. It is correct that the exporters were
uncertain about the procedure they were required to follow immediately after the
new levy under section 3A was imposed on processed textiles fabrics, especially
during the period 16.12.98 to 15.2.99. But in such cases, all goods stand duty
paid, once they are processed in the factory of an Independent Processor and
cleared for export. The question of export under 'bond' does not arise. The
indication/writing on the export documents (such as invoices, AR4 etc.) -
"exports under bond" or any other phrase does not vitiate the rebate claims.
It has, minor deviations subject to the condition that the goods in question are
actually exporter and the duty was paid by the independent processors� factory.
4.
Regarding the question whether merchant-exporters can file claims of
rebate, it is stated that there is no bar on the merchant-exporters to file
rebate claim with the Assistant/Deputy commissioner (Divisional Officer) having
jurisdiction over the factory of independent processor from which the goods were
exported. The Division Office already gets monthly Return, which gives the
values of the different components of the formula specified the determining the
quantum of rebate per unit. The merchant exporters can obtain these figures from
the factory concerned to prepare their calculation sheet for filing a rebate
claim or supplementing a rebate claim already filed.
5.
For the purpose of verification of the rebate claims, concerned
Divisional Office should determine the rate of rebate, by applying the formula,
for each independent processing factory under his jurisdiction, for each
month, on the basis of the RT-12 return pertaining to a month of such factory. A
claim from a merchant-exporter can easily be verified by applying the rate of
rebate relating to a particular month to the quantity of processed textile
fabrics manufactured and exported during that month.
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