Circular No. 118/95-Cus.
dated 21/11/95
F.No. 609/198/95-DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject :  Relaxation of period for filing of Drawback claims under rule 13 of the Customs and Central Excise Duties Drawback Rules, 1995

1. Rule 13(1) of Customs and Central Excise Duties Drawback Rules, 1995 permits a claim to be filed within three months from the date relevant for the applicability of amount or rate of drawback in terms of sub-rule (3) of rule 5. The proviso to said sub-rule provides that the Assistant Commissioner of Customs may, if he is satisfied that exporter was prevented by sufficient cause from filing his claim within the aforesaid period of three months, allow the manufacturer/ exporter to file his claim within a further period of three months.

2. Representations have been received from the Trade pointing out that the Assistant Commissioners are not exercising their discretion under the aforesaid proviso and are not allowing claims to be filed under the extended period.

3. The matter had been examined in the Ministry. The time limit for filing of drawback claims has for the first time been specified in the Customs and Central Excise Duties Drawback Rules, 1995 which wee notified on 26th May, 1995. Since there was no time limit prior to notification of these rules, the exporters have generally been under the impression that they can file their claim without any time limit. Perhaps the changes made by the new rules have not come to their notice in many cases. Accordingly, it has been decided that the powers given to the Assistant Commissioners under the proviso to rule 13(1) should be liberally exercised and ignorance of the time limit specified under rule 13(1) may also be accepted as a valid reason for delay in filing the claim at least upto 31st March, 1996. In the meanwhile, enough publicity may be given by Public Notice/ letters to Export Promotion Councils/ Trade Associations and commercial interests.

(A.K. Madan)
Under Secretary to the Government of India

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