Excise Duty Debit
against FPS Duty Credit Scrip
[Central Excise Notification No. 29 dated 9th
July 2012]
Central Government exempts
capital goods when cleared against a Focus Product
Scheme duty credit scrip issued to an exporter by the Regional Authority
In
exercise of the powers conferred by sub-section (1) of section 5A of 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
Product Scheme duty credit scrip issued to an exporter by the Regional
Authority in accordance with paragraph 3.15 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 the said scrip
is issued against exports of the products listed in Appendix 37D of the
Handbook of Procedures, Volume I of the Foreign Trade Policy:
Provided
that the following categories of exports specified in paragraph 3.17.2 of the
Foreign Trade Policy shall not be counted for calculation of export performance
or for computation of entitlement under the Focus Product Scheme, namely:-
(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);
(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.
92/2009-Customs, dated the 11 th September, 2009 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;
(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 5
th 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 5 th
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]