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Regarding All Industry Rates of Drawback in respect of man-made fabrics
falling under Chapters 54, 55 and 58 of the Drawback Table
Circular No. 98 dated 29th November 2000
In the All Industry Rates Drawback Table, the
drawback rates for the man-made fabrics falling under Chapters 54, 55 and 58 of
the said Table, have been determined by taking into consideration the duty
suffered on the inputs, i.e., yarn, dyes, chemicals and packing materials. While
formulating these rates, the Central Excise duty payable at the processing stage
of the manufacture of these fabrics has not been included/ considered.
Therefore, if the processing stage duty on the finished man-made fabrics is
covered under bond in terms of rule 13(1)(b) of the Central Excise Rules, 1944
or rebate is claimed under rule 12(1)(b) ibid, the All Industry Rate of Drawback
shall be admissible provided no Modvat facility has been availed. The exporters
are required, however, to produce proof of non-availment of Modvat, else they
may apply for special Brand Rate in accordance with Customs & Central Excise
Duties Drawback Rules, 1995.
2. The All Industry
Rate of Drawback is also admissible in respect of yarn duty where the exporters
avail Modvat credit on fibre/ POY or where the fibre/ POY is imported duty free
but duty is paid on the yarn used in the grey/ unprocessed fabric exported.
3. Representations
have been received from the trade that in the wake of the introduction of the
DFRC scheme, these existing instructions may also be made applicable to the
Notification No. 48/ 2000-Cus (N.T.) dated 1.6.2000 whereby the Drawback Table,
2000-2001 was notified.
4. It is hereby
clarified that the basic scheme of the Notification as well as of the Drawback
Table has remained the same this year. Further, since the imports under DFRC
Scheme are also subject to the payment of Countervailing duty (Central Excise
duty), the relevant Notification No. 4/ 2000-Cus (N.T.) dated 25.4.2000, has
been specifically included in the First Proviso to General Note 2(b), making the
exports under this Scheme eligible to the Central Excise allocation of the
Drawback Rates. Therefore, the above instructions are equally applicable to the
exports effected under the DFRC Scheme.
5. Suitable Public
Notice for information of the trade and standing orders for guidance of the
staff may kindly be issued on the above lines.
6.
Receipt of the Circular may please be acknowledged.
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