Levy of cess on vegetable oils produced in Free Trade Zones when cleared to Domestic Tariff Area/Export - Clarification regarding - Central Excise - 48/88-CX.8

Levy of cess on vegetable oils produced in Free Trade Zones when cleared to Domestic Tariff Area/Export - Clarification regarding Circular No. 48/88-CX.8 Dated 12-9-1988 [From F. No. 262/4/88-CX.8] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Levy of cess on vegetable oils produced in Free Trade Zones when cleared to Domestic Tariff Area/Export — Clarification regarding. Doubts have been raised as to whether cess would be payable on vegetable non-essential oils produced in Free Trade Zones and cleared to Domestic Tariff Area or exported out of India. 2. The matter has been examined in consultation with Administrative Ministry of Law. Law Ministry has opined that for purposes of exemption of cess, a separate notification under Rule 8 of Central Excise Rules read with sub-section 4 of section 3 of Vegetable Oils Cess Act, 1983 would be required. 3. On this analogy a separate Notification under Rule 12 would also be necessary for grant of rebate of cess. Since no notification under Rule 12 of Central Excise Rules, 1944, allowing rebate of cess paid on vegetable oils exported has been issued no rebate would appear to be admissible. Similarly no notification exempting cess on vegetable oils produced in Free Trade Zones has been issued therefore cess would be leviable on clearances of vegetable oil to D.T.A. if any. 4. The advice of Ministry of Law has been accepted and it has been decided that neither cess is exempted on vegetable oils produced in Free Trade Zone nor rebate of cess can be allowed on vegetable oil exported under rule 12 of Central Excise Rules, 1944. The export under bond without payment of cess under Rule 13 would also not be permissible. Field formations may be advised accordingly. Cases if any of this nature may be settled accordingly.