Excise Duty Debit
against VKGUY Duty Credit Scrip
[Central Excise Notification No. 32 dated 9th
July 2012]
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 Vishesh
Krishi and Gram Udyog Yojana (Special Agriculture and Village Industry Scheme)
duty credit scrip issued to an exporter by the Regional Authority in accordance
with paragraph 3.13.2 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 37A 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 Vishesh Krishi and Gram Udyog Yojana, 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 for clearance of 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. 95/2009-Customs, dated the 11th 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 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]