Interpretation of Clause (ii) of Explanation II to Rule 13 of the Central Excise Rules, 1944 - Instructions regarding - Central Excise - 209/41/88-CX. IV

Interpretation of Clause (ii) of Explanation II to Rule 13 of the Central Excise Rules, 1944 - Instructions regarding F. No. 209/41/88-CX. IV Dated 6-3-1989 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Interpretation of Clause (ii) of Explanation II to Rule 13 of the Central Excise Rules, 1944 - Instructions regarding. A doubt has been raised as to whether duty is required to be paid in respect of raw materials used in the manufacture of goods exported under bond under Rule 13, in view of provision of Clause (ii) of Explanation II to the said Rule. 2. The matter has been examined by the Board. It is observed that the above clause to the Explanation was inserted in Rule 13 in the year 1970. The amendment was made with a view not to collect compounded levy duty (then leviable) in respect of yarn which was used in the manufacture of fabrics exported under bond. The Board is, of the view that if the above Explanation to Rule 13 can be applied to compounded levy there is no reason why it should not apply to normal levies also. 3. In view of this it has been decided by the Board that no duty need be collected on intermediate goods produced and used in the same factory in the manufacture of finished excisable goods exported under bond, irrespective of the fact whether there is any provision in the Central Excise Rules permitting either deferment or non-payment of duty on these intermediate goods. 4. These Instructions are in supersession of any previous Instructions of the Board contrary to these. 5. Field formations may be suitably advised