Circular No. 96/2003-Cus
14th November, 2003 

Government of India
Ministry of Finance
Department of Revenue
Central  Board  of  Excise  and  Customs

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.

S.S.  Renjhen
Joint Secretary to the Government of India

Telefax No.23341079.

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