Circular No. 641/32/2002-CX
26th June 2002
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Payment of NCCD on snuff exported under bond -regarding.
I am directed to refer to Section 129 of the Finance Act, 2001 relating to imposition of National Calamity Contingent Duty (NCCD) and Notification No.42/2001 CE (NT), dated 26.6.2001 relating to export of goods without payment of duty under bond and to say that reportedly some of the field formations are issuing demands for collection of National Calamity Contingent Duty(NCCD) on goods exported under bond. The duty demands are issued on the ground that the said notification does not apply to NCCD.
2. Board has examined the matter. Though NCCD is levied under Finance Act, 2001, it is a duty of excise. Notification No.42/2001 CE (NT), dated 26.6.2001 issued under Rule 19 of Central Excise Rules, 2001 read with Central Excise Rules, 2002 allows goods to be exported without payment of duty. Further, it is the policy to grant relief form element of domestic taxes on goods, which are exported. Accordingly, it is clarified that no NCCD leviable under Section 129 of Finance Act, 2001 to be paid on the goods exported under bond. No doubt if export does not eventually take place the good would be subject to all duties of excise including NCCD as applicable.
3. The field formations may suitably be informed.
4. Receipt of this Circular may please be acknowledged.
5. Hindi version will follow.