www.ieport.com
Customs Notification No -
20/2003 (NT) dated 3.3.2003
Amendments in the Customs and Central Excise Duties Drawback Rules, 1995
In exercise of the powers conferred by sub-section (2) of section 75 of the
Customs Act, 1962 (52 of 1962) and section 37 of the Central Excise Act, 1944 (1
of 1944), the Central Government hereby makes the following rules further to
amend the Customs and Central Excise Duties Drawback Rules, 1995, namely:-
1. Short title and commencement - (1) These rules may be called the Customs and
Central Excise Duties Drawback (Amendment) (No.2) Rules, 2003.
2. They shall come into force on 1st April, 2003.
3. In the Customs and Central Excise Duties Drawback Rules, 1995 (hereinafter
referred to as the said rules), in rule 6,-
(1) in sub-rule 1,-
(i) for clause (a), the following clause shall be substituted, namely:-
"(a) Where no amount or rate of drawback has been determined in respect of any
goods, any manufacturer exporter or exporter of such goods may, within sixty
days from the date relevant for the applicability of the amount or rate of
drawback in terms of sub-rule (3) of rule (5), apply in writing to the
Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, having jurisdiction over the manufacturing unit, of the manufacturer
exporter or, of the supporting manufacturer, as the case may be, for
determination of the amount or rate of drawback thereof stating all the
relevant facts including the proportion in which the materials or components
are used in the production or manufacture of goods and the duties paid on such
materials or components:
Provided that such Commissioner of Central Excise or the Commissioner of
Customs and Central Excise, as the case may be, may, if he is satisfied that
the manufacturer exporter or exporter was prevented by sufficient cause from
filing the application within the aforesaid time allow such manufacturer
exporter or exporter to file such application within a further a period of
thirty day";
(ii) In clause (b), for the words "Central Government", the words
"Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be", shall be substituted;
(2) in sub-rule (2), –
(i) in clause (a), for the words "Central Government", the words "Commissioner
of Central Excise or the Commissioner of Customs and Central Excise, as the
case may be", shall be substituted;
(ii) for clause (b), the following clause shall be substituted, namely:-
"(b) The Commissioner of Central Excise or the Commissioner of Customs and
Central Excise, as the case may be, may, after considering the application,
allow provisionally payment of an amount not exceeding the amount claimed by
the manufacturer exporter or exporter in respect of such export:
Provided that the Commissioner of Central Excise or the Commissioner of
Customs and Central Excise, as the case may be, may, for the purpose of
allowing provisional payment of drawback in respect of such export, require
the manufacturer exporter or exporter to enter into a general bond for such
amount, and subject to such conditions, as he may direct; or to enter into a
bond for an amount not exceeding the full amount claimed by such manufacturer
exporter or exporter as drawback in respect of a particular consignment and
binding himself,-
(i) to refund the amount so allowed provisionally, if for any reason, it is
found the duty drawback was not admissible; or
(ii) to refund the excess, if any, paid to such manufacturer exporter or
exporter provisionally if it is found that a lower amount was payable as duty
drawback:
Provided further that when the amount or rate of drawback payable on such
goods is finally determined, the amount provisionally paid to such
manufacturer exporter or exporter shall be adjusted against the drawback
finally payable and if the amount so adjusted is in excess or falls short of
the drawback finally payable, such manufacturer exporter or exporter shall
repay to the Commissioner of Central Excise or the Commissioner of Customs and
Central Excise, as the case may be, the excess or be entitled to the
deficiency, as the case may be";
(iii) in clause (c), for the words "Commissioner of Customs", the words
"Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be" shall be substituted;
(3) for sub-rule (3), the following sub-rule shall be substituted, namely:-
"(3) Where the Central Government considers it necessary so to do, it may-
(a) revoke the rate of drawback or amount of drawback, determined under clause
(b) of sub-rule (1) by the Commissioner of Central Excise or the Commissioner
of Customs and Central Excise, as the case may be; or
(b) direct the Commissioner of Central Excise or the Commissioner of Customs
and Central Excise, as the case may be, to withdraw the rate of drawback or
amount of drawback determined."
4. In rule 7 of the said rules,-
(i) for sub-rule (1), the following rule shall be substituted, namely:-
"(1) Where, in respect of any goods, the manufacturer exporter or exporter
finds that the amount or rate of drawback determined under rule 3 or, as the
case may be, revised under rule 4, for the class of goods is less than
four-fifth of the duties paid on the materials or components used in the
production or manufacture of the said goods, he may within sixty days from the
date relevant for the applicability of the amount or rate of drawback in terms
of sub-rule (3) of rule (5), make an application in writing to the
Commissioner of Central Excise or the Commissioner of Customs and Central
Excise having jurisdiction over the manufacturing unit, of the manufacturer
exporter or, of the supporting manufacturer, as the case may be, for
determination of the amount or rate of drawback thereof stating all relevant
facts including the proportion in which the materials or components are used
in the production or manufacture of goods and the duties paid on such
materials or components:
Provided that the Commissioner of Central Excise or the Commissioner of
Customs and Central Excise may, if he is satisfied that the manufacturer
exporter or exporter was prevented by sufficient cause from making the
application within the aforesaid time, allow such manufacturer exporter or
exporter to make such application within a further period of thirty days.";
(2) in sub-rule (2), for the words "Central Government" the words
"Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be", shall be substituted;
(3) for sub-rule (3), the following sub-rule shall be substituted, namely:-
"(3) Where an exporter desires that he may be granted drawback provisionally,
he may, while making an application under sub-rule (1), apply to the
Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be, in writing in this behalf in the manner as has
been provided in clause (a) of sub-rule (2) of rule 6 for the applications
made under that rule and the grant of provisional drawback shall be considered
in the manner and subject to the conditions specified in clauses (b) and (c)
of sub-rule (2), and sub-rule (3) of rule 6, subject to the condition that
bond required to be executed by the claimant shall only be for the difference
between amount or rate of drawback determined under rule 3 or, as the case may
be, revised under rule 4 by the Central Government and the provisional
drawback authorised by the Commissioner of Central Excise or the Commissioner
of Customs and Central Excise, as the case may be, under this rule.
"(4) Where the Central Government considers it necessary so to do, it may-
(a) revoke the rate of drawback or amount of drawback, determined under
sub-rule (2) by the Commissioner of Central Excise or the Commissioner of
Customs and Central Excise, as the case may be, or (b) direct the Commissioner
of Central Excise or the Commissioner of Customs and Central Excise, as the
case may be, to withdraw the rate of drawback or amount of drawback
determined."
5. In 9 of the said rules, in clause (d), for the words " the Central Government
to be relevant or useful", the words, "Commissioner of Central Excise or the
Commissioner of Customs and Central Excise, as the case may be, to be relevant
or useful", shall be substituted.
6. In rule 13 of the said rules, in sub-rule (2), in clause (iv), for the words
"Central Government", the words "Commissioner of Central Excise or the
Commissioner of Customs and Central Excise, as the case may be" shall be
substituted.
7. In rule 15 of the said rules, in sub-rule (1),-
(i) for the words ‘Central Government’, the words ‘Central Government or
Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be, shall be substituted;
(ii) in the second proviso, in clause (a), for the words, "Assistant
commissioner of Customs" the words, "Assistant Commissioner of Customs and
Central Excise or Assistant Commissioner of Central Excise, as the case may
be," shall be substituted;
(iii) in the second proviso, in clause (b), for the words, "Commissioner of
Customs", the words, "Commissioner of Customs and Central Excise or
Commissioner of Central Excise, as the case may be," shall be substituted.
S.S. Renjhen
Joint Secretary to the Government of India
F.No.609/18/2003-DBK.
Note: The Customs and Central Excise Duties Drawback Rules, 1995, were
notified vide Customs notification No.37/95-Cus.(NT) dated 26th May, 1995 which
was published in the Gazette of India (Extraordinary), vide GSR No.441(E) dated
the 26th May, 1995 and was last amended by Customs notification No.
19/2003-Cus.(NT) dated 3rd March, 2003, published in the Gazette of India
(Extraordinary), vide GSR No.185(E) dated the 3rd March, 2003.