Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Custom
CIRCULAR NO. 39/2010-CUSTOMS
New Delhi, the 15th October, 2010
To
All Chief Commissioners of Customs
All Chief Commissioners of Customs & Central Excise/ Central Excise
All Director Generals under CBEC,
All Commissioners of Customs, Customs (Preventive)
All Commissioners of Customs & Central Excise/ Central Excise
The Chief Departmental Representative of Customs, Excise & Service Tax Appellate
Tribunal.
Sir/Madam,
Sub: Drawback on supplies made by DTA units to SEZ, issue of drawback cheque
books by jurisdictional Commissioner of Customs to Central Excise
Commissionerates-reg.
I am directed to invite attention to the Board circular
No.43/2007-Cus dated 5th
December, 2007 which clarified that the Specified Officer posted in an SEZ is
the appropriate authority for granting drawback in respect of goods supplied
from DTA units to Developers and units in SEZ except where the unit or Developer
issues a disclaimer to the DTA supplier in which case the Commissionerate of
Central Excise /Customs & Central Excise having jurisdiction over the DTA unit
would sanction drawback. With regard to issue of cheque books for disbursal of
drawback claims, the circular provided that the jurisdictional Commissioner of
Customs in consultation with the Pay & Accounts Officer shall make arrangements
for issue of authorization and drawback cheque books (wherever EDI facilities
are not available for directly crediting the said amount to the Bank Accounts of
the exporters).
- It has been reported by Central Excise formations that this arrangement of
obtaining authorization and cheque books from the jurisdictional Custom Houses
causes delays and some of the divisions are facing difficulties in getting the
cheque books issued from the PAOs of the custom houses. It has been suggested
that since drawback is required to be disbursed in a time bound manner and has
interest clause, the procedure may be modified so as to allow the Commissioner
of Central Excise and Customs/ Central Excise to sanction and disburse drawback
claims without having to approach the jurisdictional Commissioner of Customs for
issue of authorization and cheque books.
- The matter has been examined in consultation with the office of the
Principal, Chief Controller of Accounts. The office of Principal, CCA has
informed vide letter no. Coord/2(1)/39/Jamnagar(Cus)/57 dated 30.06.2010 that
they have already issued
instructions regarding banking arrangements for payment of refund/drawback
cheques and the uniform accounting procedure to be followed in that regard vide
letter No. Coord/2(8)/98/434 dated 13.06.2005 addressed to all the Commissioners
of Customs/Central Excise. As per this instruction, the PAOs are already issuing
cheque books to each Central Excise division for payment of refund/drawback
claims. There is no need for issuing separate chequebooks for refund and
drawback; the same chequebook can be used for making refunds and payment of
drawback. The cheque issuing officer is required to submit separate List of
Payment for Central Excise (0038) and Customs (0037) to their jurisdictional
PAO. After receipt of such List of Payment, separate accounting head shall be
maintained. Relevant extracts of letter Nos. Coord/2(1)/39/Jamnagar (Cus)/57
dated 30.06.2010 and Coord/2(8)/98/434 dated 13.06.05 are given below as
Annexure.
- In view of the above, the procedure laid down in the Board circular No.
43/2007-Cus dated 5th December, 2007 is hereby modified to the extent that the
Commissioners of Central Excise or Customs and Central Excise, as the case may
be, may issue authorization to Dy./Asstt. Commissioners of Central Excise posted
in Divisions under them for the purpose of disbursing drawback to DTA units
against disclaimers issued by SEZ units/developers. The cheque book issued by
the Pay & Accounts Officer of the jurisdictional Central Excise or the Customs
and Central Excise Commissionerate, as the case may be, to the Central Excise
Division for making refunds may be used for disbursement of drawback and the
accounting procedure as laid down in the Principal, CCA’s office letter No.
Coord/2(8)/98/434 dated 13.06.2005 may be followed in this regard.
- A suitable Public Notice for information of the trade and Standing Order for
guidance of the staff may be issued. Difficulties faced, if any, in
implementation of this Circular may be brought to the notice of the Board.
Receipt of this Circular may kindly be acknowledged.
(Pramod Kumar)
Technical Officer (Drawback)
F.No.602/02/2002-DBK
Annexure
- Extract of letter No. Coord/2(1)/39/Jamnagar (Cus)/57 dated 30.06.2010 of Dy.
Controller of Accounts, Office of the Pr. Chief Controller of Accounts, New
Delhi to Drawback Division, CBEC.
We have already issued instructions for banking arrangement for payment of
refund/drawback cheques & uniform accounting procedure thereon vide this office
letter No. Coord/2(8)/98/434 dated 13.06.2005. As per this instruction the PAOs
are already issuing cheque books to each division falling under their
jurisdiction for payment of refund/drawback claims. There is no provision to
issue separate cheque book for refund and drawback. Single cheque book is being
used for refund as well as drawback purposes and the cheque issuing officer are
required to submit separate List of payment for Central Excise (0038) and
Customs (0037) to their jurisdictional PAO. After receipt of such List of
Payment, separate accounting head will be maintained.
- Extract of letter No. Coord/2(8)/98/434 dated 13.06.05 of Controller of
Accounts, Office of the Pr. Chief Controller of Accounts, New Delhi to all the
Commissioners of Central Excise/Customs under CBEC.
As per para 11 of the RBI’s Revised Memorandum of Instructions for collection
and Accounting of Central Excise and Customs and other Dues and payments of
refund, rebate and drawback etc. by branches of Public Sector Banks, one branch
of the nominated bank located at each of the divisional headquarters of the
Commissionerate will be selected for making payment of refund/drawback cheques
issued by the authorized officer. The selected branch will prepare separate
payment scrolls which will be sent to PAO through Focal Point Branch. Consequent
upon bifurcation/trifurcation of the erstwhile combined Central Excise and
Customs Commissionerates, the following arrangements have been made for payment
of refund/drawback cheques.
- One branch of the nominated bank located at each of the divisional
headquarters of the Commissionerate may be selected on which cheques for
refund/drawbacks will be drawn.
- Particulars of officers authorized to issue refund/drawback cheques along
with their specimen signatures and name and address of the selected branches of
the nominated bank may be sent to the PAO.
- The PAO will forward the specimen signatures and particulars of the
authorized officer(s) to the selected branch of the nominated bank with the
instruction to admit the cheques for payment.
- In the case where change of nominated bank has taken place consequent upon
reorganization of the Commissionerate, the officers concerned may be asked to
surrender to the PAO the old cheque books issued to them and have the new cheque
books issued for payment of refund/drawback.
- In case of non availability of cheque books of the nominated bank the
existing cheque book may be used by affixing rubber stamp in bold letters for
particulars of the bank branch on which cheque will be drawn.
- Printing of the new MICR cheque books for the concerned bank branch is likely
to take time. In such cases, the possibility of using existing MICR cheque books
containing code no. of earlier nominated bank, by the newly nominated bank by
way of affixing stickers on it, is being ascertained from RBI separately.
- The accounting procedure for payment of refund/drawback cheques will be as
per instructions in Chapter VIII of Manual of Central Excise & Customs. The
authorized officer issuing drawback cheques must ensure to send the weekly list
of payments showing details of cheques, amount etc. together with paid vouchers
to the PAO positively by 1st working day of the following week (para 8.1.2 of
the manual). Failure in submission of weekly list of payments together with paid
vouchers in original will be treated as gross violation of the use of cheque
drawing powers and will, therefore, result in withdrawal of cheque drawing
powers. The authorizing authority (Commissioner of Customs) as well as the
controlling officer (Development Commissioner SEZ) would be responsible to
ensure timely submission of list of payments by drawing officer along with paid
vouchers to the PAO.