Circular No. 20/95-Cus. (DBK)
dated 8/3/95
F.No. 605/6/94-DBK (PT.II)
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject: Value/ Quantity Based Advance Licence – Instructions regarding.

        Your attention is invited to Ministry’s instructions of even number dated the 4th January, 1995 (Circular N0. 1/95) and Subsequent telex dated 13th January, 1995 regarding filing of Ar-4 along with the Shipping Bills.

        2.    Situation in which Modvat certificate not required.

        On re-examination of above instructions, it is further clarified that in the following Situations, certificate regarding non-availment of benefit of modvat under Rule 57-A (Rule 56-A since rescinded) of the Central Excise Rules, should not be insisted upon :-

        (i)    The export goods which are non-excisable i.e. goods which are not specified in the Schedule to the Central Excise Tariff  Act, 1985; or

        (ii)    Goods which are unconditionally exempted from payment of Central Excise duty; or

        (iii)    Non-modvatable goods i.e. export goods (final products) which are not specified under the Notification issued under Rule 57 A of Central Excise Rules.

        3.    Where the export goods are manufactured by/procured from SSI Unit:

        Where the export goods are claimed to have been manufactured is SSI Unit, or procured by a merchant exporter from SSI Unit, i.e. the Unit is working under Central Excise Notification No. 1/93-CE dated 28.2.1993 availing total duty free concession upto Rs. 30 lakhs, the exporter shall furnish the necessary declaration on/with the Shipping Bill at the processing stage. Such exporters would produce the attested acknowledged copy of the Declaration filed by the SSI Unit with the Jurisdictional Assistant Collector in lieu of the AR-4. Instruction of goods/ logging of Shipping Bills would mutatis-mutandis apply to this above document also.

        However, in Notification No. 1/93-CE, SSI Units have also been given an option to avail Modvat. SSI Units availing Modvat would be paying excise duties and therefore such units would be clearing their export goods under AR-4 procedure. The existing instructions regarding scrutiny of shipping Bill/ AR-4 and logging the DEEC Books towards discharge of Export Obligation, would apply to these cases also.

        4.    Certificate regarding non-availment of benefit of Rule 12(1)(b) and 13(1)(b) (old Rules 191-A / 191-B) :

        All exporters (manufacturers/ Merchant Exporters) exporting goods, which are specified for the benefit of Rules 12(1)(b) and 13(1)(b) (old Rules 191-A/191-B) in term of Central Excise Notification in force for such concessions must be required to produce a certificate regarding non-availment of the said benefits. Those export goods which are manufactured by SSI Unit working under Rs. 30 lakhs exemption limit or exporting unconditionally exempted goods, shall also produce a certificate or non-availment of said Rules. Where the goods are not exported under AR-4 (claim for rebate), this certificate will be insisted upon at the stage of logging of the DEEC Book in respect of each shipment before endorsing of the DEEC Book for discharge of Export Obligation. In the absence of the requisite certificate, the shipment shall not be accounted towards discharge of Export Obligation.

        Instructions contained in Telex F. No. 605/ 1/ 95-DBK dated 12.1.1995 stand amplified on the points.

(Sunil Kumar)
Director (Drawback)

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