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Customs Circular No.8 / 2003 dated 17.2.2003
Sub: Acceptance of self-declaration as to the non-availment of Cenvat facility for extending the duty drawback .

Attention is invited to the Ministry's Circular Nos.25/98-Cus, 34/98-Cus and 50/98-Cus. As per the existing instructions, the exporters who avail the Central Excise portion of duty drawback in case the drawback involves both Customs & Central Excise portions, or the full duty drawback when the rate has only Central Excise allocation, have to produce a certification from the jurisdictional Deputy Commissioner/Assistant Commissioner of Central Excise certifying that they have not availed Cenvat facility in respect of the goods exported. The rationale behind this condition is that no double benefits should accrue to the exporters because through the Cenvat facility as well as duty drawback, exporters are rebated the duties of Central Excise suffered on the inputs used in the manufacture of the export products.

2. There have been a large number of representations from the trade that they find it difficult to furnish the certificate from Central Excise authorities for every export consignment. This matter had been considered by the Kelkar Committee set up to examine the possibility of reforms in the Indirect Tax Administration.

3. After accepting the recommendations of the Committee, the Board has decided that henceforth the manufacturer-exporters who are not registered with Central Excise or such merchant exporters whose supporting manufacturer are not registered with the Central Excise, shall not be required to furnish any certificate as to the non-availment of Cenvat facility from the jurisdictional Central Excise authorities.

4. It has been decided that instead these manufacturer exporters and merchant exporters with a supporting manufacturer shall be required to give a self-declaration that such manufacturer-exporters or the supporting manufacturers are not registered with Central Excise and that they do not avail / have not availed Cenvat facility. The form of self-declaration is enclosed.

5. It is also clarified here that as regards such manufacturer- exporters and supporting manufacturers who are registered with Central Excise, the fact of non-availment of Cenvat facility can be confirmed from ARE-I which these exporters shall be furnishing. Therefore, in case of registered manufacturer-exporters and merchant exporters with registered supporting manufacturers the earlier practice of acceptance of ARE-I shall continue.

6. Suitable public notices for information of the Trade and standing orders for guidance of the staff may kindly be issued accordingly.

7. The receipt of this Circular may kindly be acknowledged.

Yours faithfully

(S.S. Renjhen)
Joint Secretary to the Government of India
Telefax No.23341079.
Encl: As above