GOVERNMENT OF INDIA
MINISTRY OF FINANCE AND COMPANY AFFAIRS
DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, CHENNAI - I
26/1 (121), Mahatma Gandhi Road, Nungambakkam, Chennai 600 034.
GENERAL CIRCULAR NO.31 / 2005 Dated: 09.08.2005
Sub:-CE Advance licencing Scheme Rebate of duty on finished
excisable goods - Withdrawal of Modus Operandi Circular
No. 51 dated 19.04.2005 - Regarding.
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Copy of letter Nos. F. 574/CE/16/2005 dated 06.07.2005 and 18.07.2005 received from the Directorate General of Central Excise Intelligence, New Delhi, on the above subject are communicated for information and necessary action.
2. Copy of Modus Operandi Circular No. 51 dated 19.04.2005 referred to therein is enclosed for ready reference.
[Issued from file C.No.IV/16/04/2005-Cx.Pol (Vol.II)]
JOINT COMMISSIONER (TECH)
As per Mailing List
Copy of Modus Operandi Circular No. 51 dated 19.04.2005
Intelligence received in this Directorate indicate that exporters are importing raw material duty free under the cover of Advance Licence and while fulfilling the export obligation they are exporting the goods under claim of rebate under Rule 18 of Central excise Rule 2002. The facility of availment of rebate is specifically prohibited vide condition No. (v) of Notification No. 93 / 2004 Cus dated 10.09.2004.
Condition (v) of Notification No. 93 / 2003 Cus dated 10.09.2004 provided that exemption contained in the aforesaid Notification will be applicable only when in respect of the resultant export products, the facility of rebate under Rule 18, both in respect of the duty paid on the final product as also in respect of the duty paid on the materials used in their manufacture has not been availed of. This means an exporter cannot claim the benefit of rebate as well as the benefit of duty free import in respect of the inputs. As such, if facility of Rule 18 or Rule 19 (2) of Central Excise Rule 2002 is availed of by an exporter, exemption under Notification No. 93 / 2004 Cus dated 10.09.2004 will not be available to him.
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