Circular No. 805/02/2005-Central Excise, Dated: 11.1.2005

Circular No. 805/02/2005-Central Excise
11th January, 2005

F.No. 209/7/2003-CX 6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
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Subject: Export of resultant goods manufactured by using goods obtained without payment of duty under notification No. 43/2001-CE(NT) dated 26^th June, 2001- regarding.

I am directed to say that notification No. 43/2001-CE(NT) dated 26^th June, 2001 was amended vide notification No. 10/2004-CE(NT) dated 2nd June, 2004. The said amendment added an Explanation to notification No. 43/2001-CE(NT) clarifying that goods manufactured or processed using materials procured under notification No. 43/2001-CE(NT) can only be exported in terms of sub- rule(1) of rule 19 of Central Excise Rules, 2002.

2. Board had also issued Circular No. 792/25/2004-CX dated 3^rd June, 2004 stating that the amendment carried out vide notification No. 10/2004-CE(NT) dated 2nd June, 2004 is clarificatory in nature and goods manufactured or processed using materials procured under notification No. 43/2001-CE(NT)  can only be exported under Bond i.e. in terms of sub- rule(1) of rule 19 of Central Excise Rules, 2002 read with notification No. 42/2001-CE(NT) dated 26^th June, 2001.

3. Consequent to above, references have been received from trade and industry as to whether the provisions of amending notification No. 10/2004-CE(NT) dated 2nd June, 2004 would be applicable retrospectively. The matter has been examined by Board. It is hereby, clarified that the notification No. 10/2004-CE(NT) dated 2nd June, 2004 would be applicable prospectively from the date of issue of the notification i.e. 3^rd June, 2004 and not to exports effected already. Circular No. 792/25/2004-CX dated 3^rd June, 2004 stands modified to the above extent. Pending claims if any, may be decided accordingly.

4. Trade and field formations may please be informed suitably.

5.  Receipt of the Circular may be acknowledged.

6.  Hindi version will follow.

                                                      Yours faithfully,
Neerav Kumar Mallick
Under Secretary to the Govt. of India