Export - Rebate on materials used in manufacture of goods exported out of India - 42/94 - Central Excise - Non Tariff

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Export - Rebate on materials used in manufacture of goods exported out of India

Notification No. 42/94-C.E. (N.T.)

Dated 21-9-1994

In exercise of the powers conferred by clause (b) of sub-rule (1) of rule 12 of the Central Excise Rules, 1944, the Central Government hereby directs that rebate of duty paid on materials used in the manufacture of goods as specified in column (2) of the Table annexed hereto shall, on their exportation out of India, to any country except Nepal and Bhutan, be made to the extent specified in column (3) thereof :

Provided that -

(i) the manufacturer shall file a declaration with the Collector of Central Excise having jurisdiction over the factory of manufacture describing the finished goods proposed to be manufactured along with their rate of duty leviable and manufacturing formula with particular reference to quantity or proportion in which the materials are actually used as well as the quantity. The declaration shall also contain the tariff classification, amount of excise duty paid on the materials so used, both in words and figures, in relation to the finished goods to be exported;

(ii) the Collector of Central Excise may call for samples of finished goods or may inspect such goods in the factory of manufacture to satisfy himself about the correctness of the ratio of input and output mentioned in the declaration filed before the commencement of manufacture of such goods;

(iii) the manufacturer shall obtain the excisable materials to be utilised in the manufacture and packing of the finished goods intended for export directly from the registered factory in which such goods are produced, accompanied by documents evidencing payment of duty :

Provided that the manufacturer may procure excisable goods from open market :

Provided further that such excisable goods shall be in original packed condition and documents evidencing having duty paid on such excisable goods are furnished;

(iv) the Collector of Central Excise may permit a manufacturer to remove the materials as such or after the said materials have been partially processed during the course of manufacture of export goods to a place outside the factory -

(a) for the purposes of test, repairs, refining, reconditioning or carrying out any other operation necessary for the manufacture of the final goods and return the same to his factory without payment of duty for further use in the manufacture of export goods or remove the same without payment of duty in bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the said factory of the manufacture;

(b) for the purpose of manufacture of intermediate products necessary for the manufacture of final product and return the said intermediate products to his factory for further use in the manufacture of final product without payment of duty or remove the same, without payment of duty in bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the factory of manufacturer;

(v) the manufacturer shall, mutatis mutandis, follow the procedure set out in Chapter X of the Central Excise Rules, 1944 for procuring materials from the factory of manufacture subject to the conditions that the Collector of Central Excise, may, in writing, waive any or all of the provisions of any rule of that Chapter, if those are considered not necessary and essential in the interest of revenue.

Explanation I - "Duty" for the purpose of this notification means duties of excise collected under the following enactments, namely :-

(a) the Central Excises and Salt Act, 1944 (1 of 1944);

(b) the Mineral Products (Additional Duties of Excise and Customs) Act, 1958 (27 of 1958);

(d) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(e) Special excise duty collected under a Finance Act.

Explanation II - The expressions "manufacture" and "material" used in the notification shall have the meanings respectively assigned to them in rule 12 of the Central Excise Rules, 1944.

TABLE

S. No.	Description	Extent of rebate of duty
(1)	(2)	(3)
1.	Materials used in the manufacture of goods falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) that are exported out of India.	Whole