CBEC Allows Debit of Excise
Duty against FMS Duty Credit Scrip
30-CE In exercise of the powers conferred
09.07.2012 by sub-section (1) of
section 5A of
(DoR) the Central Excise Act,
1944 (1 of
1944), read with
sub-section (3) of
section
3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957
(58 of 1957) and sub-section (3) of section 3 of the Additional Duties of
Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central
Government, on being satisfied that it is necessary in the public interest so
to do, hereby exempts the goods specified in the First Schedule and the Second
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), when cleared
against a Focus Market Scheme duty credit scrip issued to an exporter by the
Regional Authority in accordance with paragraph 3.14 of the Foreign Trade
Policy (hereinafter referred to as the said scrip) from,-
(i) the whole of the duty of excise leviable
thereon under the First Schedule and the Second Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986);
(ii) the whole of the additional duty of excise
leviable thereon under section 3 of the Additional Duties of Excise (Goods of
Special Importance) Act, 1957 (58 of 1957); and
(iii) the whole of the additional duty of excise
leviable thereon under section 3 of the Additional Duties of Excise (Textiles
and Textile Articles) Act, 1978 (40 of 1978).
2. The exemption shall be subject to the
following conditions, namely:-
(a) that
said scrip is issued against exports to the countries notified in Appendix 37C
of the Handbook of Procedures, Volume I in terms of entitlement under paragraph
3.14.2 or against the exports to the countries or regions specified in
paragraph 3.14.4(e) or paragraph 3.14.5(e) of the Foreign Trade Policy, as the
case may be:
[Substituted
by 21-CE/13.06.2013]
Provided that the
following categories of exports specified in paragraph 3.17.2 and 3.14.3 of the
Foreign Trade Policy shall not be counted for calculation of export performance
or for computation of entitlement under paragraph 3.14.2 of the Foreign Trade
Policy, namely:-
[Amended by 21-CE/13.06.2013]
(i) Export Oriented Units or Electronic
Hardware Technology Parks or Biotechnology Parks which are availing direct tax
benefits or exemption;
(ii) Export of imported goods covered under
Para 2.35 of the Foreign Trade Policy;
(iii) Exports through transshipment, meaning
thereby that exports originating in third country but transshipped through
India;
(iv) Deemed Exports;
(v) Exports made by Special Economic Zone
units or Special Economic Zone products exported through Domestic Tariff Area
units;
(vi) Items, which are restricted or prohibited
for export under Schedule-2 of Export Policy in ITC (HS);
(vii) Supplies made to Special Economic Zone
units;
(viii) Service Exports;
(ix) Diamonds and other precious, semi precious
stones;
(x) Gold, silver, platinum and other precious
metals in any form, including plain and studded jewellery;
(xi) Ores and Concentrates, of all types and in
all forms;
(xii) Cereals, of all types;
(xiii) Sugar, of all types and in all forms;
(xiv) Crude or Petroleum oil and Crude or
Petroleum based products covered under ITC HS codes 2709 to 2715, of all types
and in all forms; and
(xv) Export of milk and milk products covered
under ITC HS Codes 0401 to 0406, 19011001, 19011010, 2105 and 3501;
(xvi) Export of Meat and Meat Products;
(xvii) Export of Cotton;
(xviii) Export of Cotton
Yarn;
(xix) Export which are subject
to Minimum Export Price or Export Duty:
[SNos.
(xvi) to (xix) inserted by 31-CE/26.12.2013]
“Provided further that for
the purpose of calculation of export performance or for computation of
entitlement under paragraph 3.14.4 or paragraph 3.14.5 of the Foreign Trade
Policy, the incremental growth shall be in respect of each exporter [Importer
Exporter Code (IEC) holder] without any scope of combining the export for group
company or for transferring export performance from any other IEC holder and
the incremental growth shall be in terms of freely convertible currency to the
designated markets. The following categories of exports shall not be counted
for calculation of export performance or for computation of entitlements:
(i) Export of imported goods or exports made
through trans-shipment;
(ii) Export from SEZ/ EOU /EHTP /STPI
/BTP/FTWZ;
(iii) Deemed Exports;
(iv) Service Exports;
(v) Third Party exports;
(vi) Diamond, Gold, Silver, Platinum, other
precious metal in any form including plain and studded jewellery and other
precious and semi-precious stones;
(vii) Ores and concentrates of all types and in
all formations;
(viii) Cereals of all types;
(ix) Sugar of all types and all forms;
(x) Crude / petroleum oil and crude / primary
and base products of all types and all formulations;
(xi) Export of milk and milk products;
(xii) Export performance made by one exporter on
behalf of other exporter;
(xiii) Supplies made to SEZ units;
(xiv) Items, export of which requires an export
authorisation (except SCOMET);
(xv) Export of Meat and Meat Products;
(xvi) Exports to Singapore, UAE and Hong Kong,
(xvii) SEZ/EOU/EHTP/BTP/FTWZ products exported
through DTA units;
(xviii) Cotton (for the
paragraph 3.14.5 of the Foreign Trade Policy);
(xix) Cotton Yarn (for the
paragraph 3.14.5 of the Foreign Trade Policy);
(xx) Export which are
subject to Minimum Export Price or Export Duty (for the paragraph 3.14.5 of the
Foreign Trade Policy);
[Proviso inserted by
21-CE/13.06.2013; SNos. (xviii) to (xx) inserted by 31-CE/26.12.2013; SNo.
(xix) omitted by 05-CE/24.02.2014]
(b) that the benefits under this notification shall
not be available to clear the items listed in Appendix 37B of the Handbook of
Procedures, Volume I;
(c) that the benefits under this notification
shall not be available to goods or items, the imports of which are not
permitted against the said scrip;
(d) that the said scrip is registered with the
Customs authority at the port of registration (hereinafter referred as the said
Customs authority);
(e) that the holder of the scrip, who may
either be the person to whom the scrip was originally issued or a
transferee-holder, presents the said scrip to the said Customs authority along
with a letter or proforma invoice from the supplier or manufacturer indicating
details of its jurisdictional Central Excise Officer (hereinafter referred as
the said Officer) and the description, quantity, value of the goods to be
cleared and the duties leviable thereon, but for this exemption;
(f) that the said Customs authority, taking into
account the debits already made towards imports under Notification No.
93/2009-Customs, dated the 11th September, 2009, the debits made under
notification No. 6 of 2013-Service Tax, dated the 18th April, 2013 and this
exemption, shall debit the duties leviable, but for this exemption in or on the
reverse of the said scrip and also mentions the necessary details thereon,
updates its own records and sends written advice of these actions to the said
Officer;
[Substituted
by 17-CE/16.05.2013]
(g) that at the time of clearance, the holder
of the scrip presents the said scrip debited by the said Customs authority to
the said Officer along with an undertaking addressed to the said Officer that
in case of any amount short debited in the said scrip he shall pay on demand an
amount equal to the short debit, along with applicable interest;
(h) that based on the said written advice and
undertaking, the said Officer endorses the clearance particulars and validates,
on the reverse of the said scrip, the details of the duties leviable, but for
this exemption, which were debited by the said Customs authority, and keeps a
record of such clearances;
(i) that the manufacturer retains a copy of
the said scrip, debited by the said Customs authority and endorsed by the said
Officer and duly attested by the holder of the scrip, in support of the
clearance under this notification; and
(j) that the said holder of the scrip, to whom
the goods were cleared, shall be entitled to avail the drawback or CENVAT
credit of the duties of excise leviable under the First Schedule and the Second
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), section 3 of the
Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of
1957) and section 3 of the Additional Duties of Excise (Textiles and Textile
Articles) Act, 1978 (40 of 1978), against the amount debited in the said scrip
and validated at the time of clearance.
Explanation
- For
the purposes of this notification,-
(A) “Foreign Trade Policy” means the Foreign
Trade Policy, 2009-14, published by the Government of India in the Ministry of
Commerce and Industry, vide notification No.01 (RE 2012)/2009-2014, dated the 5th June, 2012.
(B) “Handbook of Procedures Volume 1” means the
Handbook of Procedures Volume 1, 2009-14, published by the Government of India
in the Ministry of Commerce and Industry, vide Public Notice No.01
(RE 2012)/2009-2014, dated the 5th June,
2012.
(C) “Regional Authority” means the authority
competent to grant a duty credit scrip under the Foreign Trade (Development and
Regulation) Act, 1992 (22 of 1992).
[F. No. 605/12/2012-DBK