Procedure for Duty Credit for Goods Exported under RoSCTL - Recovery of Amount of Duty Credit Clause Amended

[Notification No. 76/2022-Customs (N.T.) dated 14th September, 2022]

G.S.R…(E).- In exercise of the powers conferred by sub-section (1) of section 51B of the Customs Act, 1962 (52 of 1962), the Central Government, hereby makes the following amendments in the notification published in the Gazette of India, Extra-ordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 663(E), dated the 24th September, 2021, namely:-

In the said notification, namely: -

(i) In clause 4, sub-clause (2) shall be omitted.

(ii) In clause 5, sub-clause (5) shall be omitted.

(iii) In clause 6, the words “or the transferee” shall be omitted.

[F. No. CBIC-140605/12/2021-O/o Dir (Drawback)-CBEC]

[The amended clauses of the Notification No. 77/2021-Customs (N.T.) dated 23 September 2021 are giving below. The portions in strikethrough are omitted]

[Please see BIG’s Easy Reference Customs Manual Feb 2022 Edn. @p.263 for detail]

4. Recovery of amount of duty credit.- (1) Where an amount of duty credit has, for any reason, been allowed in excess of what the exporter is entitled to, the exporter shall repay the amount so allowed in excess, himself or on demand by the proper officer, along with interest, at the rate as fixed under section 28AA of the said Act for the purposes of that section, on that portion of duty credit allowed in excess, which has been used or transferred, and where the exporter fails to repay the amount along with interest, as applicable, it shall be recovered in the manner provided in section 142 of the said Act.

(2) The duty credit amount that an exporter is so required to repay under sub-clause (1) shall be deemed never to have been allowed, and if the exporter fails to repay the said amount within a period of fifteen days along with interest so demanded, then the proper officer of Customs may, without prejudice to any action against the exporter, proceed for recovery of the said duty credit amount from the transferee in the manner as provided in section 142 of the said Act.

5. Recovery of amount of duty credit where export proceeds are not realised.- (1) Where an amount of duty credit has been allowed to an exporter but the sale proceeds in respect of such export goods have not been realised by the exporter in India within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), the exporter shall, himself or on demand by the proper officer, repay the amount of duty credit, along with interest, at the rate as fixed under section 28AA of the said Act for the purposes of that section, within fifteen days of expiry of the said period.

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(5) The proper officer of Customs may, without prejudice to any action against the exporter, proceed for recovery of said duty credit amount from the transferee in the manner as provided in section 142 of the said Act.

6. During the pendency of any recovery, as provided in clauses 4 and 5, no further duty credit, on any subsequent exports, shall be allowed to such exporter till the time such recovery is made and any unutilised duty credit with the exporter or the transferee shall be suspended pending such recovery.