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Customs Circular No. 96/ 2003 dated
14.11.2003
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 No.8/2003-Cus, dated 17th
February, 2003 and Circular No.65/2003-Cus dated 28.7.2003. Through these
Circulars, issued in the wake of Kelkar Committee’s recommendations, it was
prescribed 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 for the purposes of claiming of duty drawback.. It
was, however, provided vide para 5 of Circular No.65/2003-Cus that in respect of
registered manufacturer exporters as well as merchant exporters with registered
supporting manufacturers, the fact of non-availment of CENVAT facility could be
verified from the ARE-I.
2. Through Central Excise Circular No. 705/21/2003-CX.6 dated 8.4.2003, Board,
after considering the specific situation of the readymade garment sector, has
decided to extend the Simplified Export Procedure to the ready made garments
(both- knitted and woven categories) because these manufacturers primarily
export almost all of their production and their clearances of rejects and waste
for home consumption are minimal. Therefore, according to this procedure, their
exports can be cleared on the invoices instead of regular ARE-I.
3. The trade has represented that despite the extension of such facility,
registered manufacturer-exporters are required to produce a certificate as to
non-availment of CENVAT facility as even though they are not clearing the goods
under ARE-I, they have not been exempted from giving a certification as to non-availment
of CENVAT facility in terms of para 4 of Circular No.8/2003-Cus. dated
17.2.2003.
4. The issue has been examined. It has been decided that for the sake of
harmony, the readymade garments(knitted/woven) manufacturer-exporters shall also
be paid drawback merely on the basis of a self-declaration as to the non-availment
of CENVAT facility.
5. However, in order to safeguard revenue and to rule out the possibility of any
mis-declaration by the exporters, it is considered necessary that the
declarations given by the exporters be selectively picked up and sent to the
jurisdictional Central Excise field formations for random verification.
Commissioner of Customs may kindly devise a suitable procedure for selection of
such declarations and forwarding of the same to the Central Excise field
formations. Any instances of mis-declaration noticed pursuant to the Central
Excise verification reports should be dealt with stringently and exemplary
punishment should be meted out.
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
Sd/-
(S.S. Renjhen)
Joint Secretary to the Government of India
Telefax No.23341079