Circular No. 418/51/98-Central Excise
Government of India
Ministry of Finance
(Department of Revenue), New Delhi
Subject: Grant of rebate of central excise duty on non-alloy steel ingots and billets and non alloy steel hot re-rolled products exported/ used as materials in export goods, where duty has been paid under section 3A of the Central Excise Act, 1944.
I am directed to say that notification Nos. 31/98-CE(N.T.), 32/98-CE (N.T.), 33/98-CE(N.T.) and 34/98-CE (N.T.), all dated 24.8.1998, have been issued under rule 12 of the Central Excise Rules, 1944, providing for grant of rebate of duty of excise on non-alloy steel ingots and billets and non-alloy steel hot re-rolled products, exported out of India or used as materials in the export goods, where duty is paid under Section 3A of the Central Excise Act, 1944.
2. Notification No. 31/98-CE(N.T.) dated 24.8.1998 provides for rebate of duty on non-alloy steel ingots and billets falling under sub headings 7206.90 and 7207.90 and on non-alloy steel hot re-rolled products falling under sub headings 7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92, 7211.99, 7213.90, 7214.90, 7215.90, 7216.10 & 7216.90 of the Central Excise Tariff Act, 1985 (5 of 1986) @ 12 per cent of the FOB value, where duty has been paid under section 3A of the Central Excise Act, 1944, on their exportation out of India except Nepal or Bhutan. It must be ensured that in respect of same export goods, rebate of duty on materials is not claimed.
3. Notification No. 32/98-CE (N.T.) dated 24.8.1998 amends notification No. 42/94-CE(N.T.) dated 22.9.1994, as amended, allows rebate of central excise duty on excisable goods mentioned in para 2 above and used as material in export goods @ 12 per cent of the invoice price. The rebate shall not be admissible on such materials procured from the open market. Also, the invoice price should conform the requirements of the new Explanation III added to notification No. 42/94-CE(N.T.) dated 22.9.1994, as amended.
4. Notification No. 33/98-CE(N.T.) dated 24.8.1998 provides for rebate of central excise duty on the products mentioned in para 2 above on their exportation from India to Nepal, to His Majesty”s Government of Nepal, @ 12 per cent of the export price subject to maximum of aggregate of the duty of Customs add Additional duty of Customs levied by His Majesty”s Government of Nepal on such goods when they are imported into Nepal from any country other than India. The rebate shall be sanctioned as per procedure prescribed in Annexure-I to notification No. 50/94-CE (N.T.) dated 22.9.1994.
5. Notification No. 34/98-CE (N.T.) dated 24.8.1998 amends notification No. 41/94-CE (N.T.) dated 22.9.1994 and notification No. 50/94-CE (N.T.) dated 22.9. 1994 so as to exclude the excisable goods on which duty has been paid under Section 3A of the Central Excise Act, 1944.
6. It is emphasized that these notifications provide for rebate of duty only where duty on such clearances have been full discharged. No rebate fully or partially, should be sanctioned where duty has not been paid or only partially paid for the period in which the goods have been removed from the factory of production It is, however, clarified that rebate will be allowed even in the cases where a manufacturer makes delayed payment of duty under the provisions of Central Excise Rules, 1944, in respect of period where export goods were cleared.
