Government of India
Ministry of Finance
Department of Revenue, New Delhi
Subject : Duty Drawback on Tea – regarding.
Attention of all concerned is drawn to SS No. 09.021 of the Drawback Table, 1999-2000, wherein drawback @ Rs. 2/- per kg. has been allowed on tea (to the extent of ir digenous proportion). The said rate is incumbent upon the condition of non-availment of Modvat facility.
2. It is hereby clarified that the production of certificate as regards non-availment of Modvat facility is a mandatory condition for allowing drawback on tea and this condition cannot be relaxed / waived. Those exporters who are unable to furnish such a certificate may be advised to either apply for Brand Rate of Drawback or avail of the facility of rebate.
3. It is also clarified that the drawback rate of Rs. 2/- per kg. is only for the bulk tea and while fixing the same, drawback on any packing materials has not been considered.
4. It is however, emphasis that as provided in General Note 2 to the Drawback Table, drawback shall not be allowed in those cases of export where the exporters are availing rebate of Central Excise duties paid on bulk tea in terms of rules 12(1)(a) or (12)(1) (b) or exporting under bond in terms of rule 13(1) (b) of the Central Excise Rules, 1944.
5. This may be brought to the notice of the staff concerned and the trade through issuance of suitable standing order and public notice. Also kindly acknowledge the receipt of this Circular.