Circular No. 262/96/96- Central Excise
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs, New Delhi
Subject : Payment of rebate by cheque when deuty paid through RG23C Part II
1. A doubt has arisen whether rebate of Central Excise duties paid on the goods exported by debit through RG 23C account, can be paid in cash/ by cheque or not. Representations have been received that on account of this doubt several claims of rebates are pending for long.
2. The matter has been examined by the Board.
3. Rule 12(i)(a) of Central Rules read with Notification No. 41/94-CE (NT) dated 22/9/94 as amended provides, inter alia, that the excisable goods shall be exported after payment of duty. There is no stipulation that such duty should be paid only by cash or through PLA. Chapter V(AA) dealing with MODVAT on inputs and Chapter V(AAAA) dealing with MODVAT on capital goods do not prohibit payment of rebate in cash/ by cheque.
4. The provisions relating to capital goods under sub-rule (3) of Rule 57S merely provide that the credit of duty available in RG 23G Part II account shall not be refunded in cash or by cheque. However, rebate of duty paid on the goods exported by utilising credit in RG 23 C Part II Account stand on different footings.
5. Moreover, the Board has already clarified that rebate of duty paid through RG 23A Part II is admissible by Circular No. 153/64/95-CX dated 12th October, 1995. The same will also apply to rebate of duty paid through RG 23 C Part II.
6. It is, therefore clarified that rebate of duty paid through RG 23C part II is also admissible and is permitted to be paid in cash/ through cheque.
7. All the pending claims should disposed of expeditiously in view of above clarification.
