Circular No. 25/95
dated 21/3/95
F.No. 609/220/94-DBK
Government of India
Ministry of Finance
Department of revenue, New Delhi

Subject :  MODVAT Declaration in respect of claim for drawback by Merchant Exporters – Acceptability – regarding

        All Industry rate of drawback against certain items of drawback Table (e.g. SS No. 1902, 1912, 1912, 1914, 2102, 3708(b) etc.] is admissible subject to certain conditions specified under the respective entries. The conditions inter alia include the following :-

      (i) The exporter declares and if necessary establishes to the satisfaction of the Assistant  Collector concerned that he has not availed of the MODVAT facility for any of the inputs used in the manufacture of the export product.

(b)  If the goods are exported under bond or claim for rebate of Central Excise Duty, a certificate from the concerned Superintendent of Central Excise incharge of the factory of production to the effect that the MODVAT facility has not been availed for the goods under export, is produced.

2. A doubt has been raised whether declaration/ certification by Merchant Exporter can be accepted towards compliance with the above conditions in case of drawback claims by Merchant Exporter. The issue was also discussed in the Collectors’ Conference at Madras and in the connection, attention is invited to the Minutes thereof against Point No. G-4.

3. The matter has been examined in the Ministry and it has been decided that in case of exports by Merchant Exporter, the aforesaid conditions can be fulfilled only if the Merchant exporter furnishes the details of the manufacturer of the goods in the Shipping Bill and requisite declaration/ certification by the manufacturer of the goods is produced to the satisfaction of the proper officer either at the time of passing the Shipping Bill or the drawback claim. Verification of the correctness of declaration/ certification wherever necessary would therefore require to be done with reference to the manufacturer of goods as declared in the Shipping Bill.

(K.D. Tayal)
Commissioner (Drawback)

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