Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject: Rebate of Central Excise duty under Rule 12(1)(b) of the Central Excise Rules, 1944 on processing of fabrics used in manufacture of made-up articles of cotton and man-made textiles exported out of India- Regarding.
I am directed to draw your attention to Board”s Circular NO. 209/43/96-CX (F.No. 209/62/95-CX.6) dated 9.5.96 vide which rebate in respect of duty element suffered on processing of cotton fabrics used for manufacture of made-up articles exported was allowed to be claimed by the exporters of such made-ups. Similar facility facility was extended to exporters of man-made fabrics/ sarees. A doubt has been raised whether after the issue of notification No. 49/96-Cus. (N.T.) dated 22.10.96, the aforesaid Circulars are valid.
2. The matter has been examined by the Board.
3. The aforesaid Circulars issued by Central Excise Wing were based on the provisions of Drawback Schedule, as it existed prior to 23.10.96. The Ministry announced new All Industry Rate of Drawback effective from 23.10.96 vide notification No. 49/96-Cus. (N.T.) dated 22.10.96 was issued where it has already been clarified in para 5 that “in case of made-up articles made from textile fabrics, the Central Excise duty incidence suffered on the fabrics has been considered while working out the rates of drawback. Therefore, the existing note has been deleted in order to remove the ambiguity in the admissibility of the All Industry Rates of Drawback on such export products.
4. In view of the above changes in Drawback Schedule, the aforesaid two Circulars of Central Excise have become infructuous w.e.f. 23.10.96 and hence may be treated as with drawn.