Subject: Amendment of rule 12 for substituting sub-rule (3) – implications – regarding.
I am directed to draw your attention to the Central Excise 11th Amendment Rules, 1998, vide notification No. 30/98-CE(N.T.) dated 24.8.1998, whereby sub-rule (3) of rule 12 of the Central Excise Rules, 1944 has been substituted.
It was brought to the notice of the Board that the erstwhile sub-rule (3) of rule 12 provided that grant of rebate under clause (b) of sub-rule (1) of rule 12 and drawback allowed under the Customs and Central Excise Drawback Rules, 1995, are mutually exclusive. Thus, the rebate of even those excise duties which were not covered by the All Industry Rate or Brand Rate of drawback of the Drawback Rules was not permitted. To obviate the difficulty, this amendment has been brought about so that rebate of such duties of excise which are not included in the all Industry Rate of Brand Rate / Special Brand Rate of the drawback rules, is permitted.
2. However, while granting rebate on the materials under rule 12(1)(b) it must be ensured that exporters do not get drawback of such duty under All Industries Rates or Brand Rates of the Customs and Central Excise Duty Drawback Rules, 1995 and also no Modvat credit of Such duty has been availed of under the provisions of Section AA of Chapter V of the Central Excise Rules, 1944.