Circular No. 473/39/99-Central Excise
Government of India
Ministry of Finance
Department of Revenue,
Central Board of Excise & Customs
Subject : Rebate of excise duty paid on ingots and billets of non-alloy steel and hot re-rolled products of non-alloy steel notified under section 3A of the Central Excise Act, 1944 for the period from 1.8.97 to 23.8.98 – Instructions regarding
I am directed to say that a doubt has arisen whether the rebate of central excise duty paid on ingots billets of non-alloy steel and hot re-rolled products of non-alloy steel notified under section 3A of the Central Excise Act, 1944 for the period from 1.8.97 (the day re-rolled material and induction furnace goods were covered under this levy based on capacity of production) and 23.8.98 (the preceding day to the date when notifications providing method of computation of rebate were issued) can be granted in respect of the goods removed from the factory of independent manufacturers and exported or the raw material removed from the factory of independent manufacturers for manufacture of export goods, during this period and whether the rates / method of computation of rebate prescribed in Notification nos. 31/98 (NT) to 33/98 (NT) all dated 24.8.98 [hereinafter referred to as the said notifications] can be applied for granting of such rebates.
2. The Board has examined the matter in consultation with Ministry of Law, Justice and Company Affairs. It is seen that the right to get rebate on exports emanated from rule 12 read with notification No. 41/94-CE (N.T.) dated 22.9.94 in case of export of finished excisable goods, notification No. 42/94-CE (N.T.) dated 22.9.94 in case of raw materials used in the manufacture of export goods and notification No. 50/94-CE (N.T.) dated 22.9.94 in case of exports to Nepal. However after the goods were notified under section 3A, the identification of the duty paid on exports became difficult, the said notifications were issued which simply provide a formula to ascertain the duty content on the export and other usual procedures. These notifications neither create a right nor affect the pre-existing right to avail the rebate of duty. Hence, the said notifications are not hit by the principles of retrospectivity. On the identical issue concerning rebate of duty paid under section 3A on processed textile fabrics, the decision of the Board, based on the opinion of the Ministry of Law, Justice & Company Affairs, has already been communicated by Circular No. 462/28/99 – CX dated 21.6.99.
3. In view of the above legal position, the Board has decided that the exporters of the said goods will be entitled for rebate under rule 12 of the Central Excise Rules in respect of said goods cleared from the factory of independent manufacturers and exported during 1.8.97 (inclusive to 23.8.98 and the formula for computation of rebate and other procedures prescribed in the said notifications should be applied while granting such rebates.
4. The Board further desires that the Trade/exporters and the field formations may be informed quickly about this decision. The exporters will be allowed to submit additional calculation sheet based on the formula prescribed in the said notifications even in cases where they filed rebate claims earlier and are lying pending with the Department. All rebate claims pertaining to the period in question should be taken on priority basis.
5. Any difficulty experienced in the regard may be brought to the notice of the Board immediately.