Rebate of whole of the duty paid on excisable goods used in manufacture or processing of export goods - 021/2004 - Central Excise - Non Tariff

Rebate of whole of the duty paid on excisable goods

NOTIFICATION NO. 21/2004-CE(N.T.)

DATED 06/09/2004
 

In exercise of the powers conferred by of rule 18 of the Central Excise Rules, 2002 and in supersession of the Ministry of Finance, Department of Revenue, notification No. 41/2001-Central Excise (N.T.), dated the 26th June, 2001 [G.S.R.470 (E) dated the 26thJune, 2001], the Central Government hereby, directs that rebate of whole of the duty paid on excisable goods (hereinafter referred to as 'materials') used in the manufacture or processing of export goods shall, on their exportation out of India, ⁵[to any country except Bhutan], be paid subject to the conditions and the procedure specified hereinafter: -

⁶[(1A)] Filing of declaration. - The manufacturer or processor shall file a declaration with the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture describing the finished goods proposed to be manufactured or processed along with their rate of duty leviable and manufacturing/processing formula with particular reference to quantity or proportion in which the materials are actually used as well as the quality. The declaration shall also contain the tariff classification, rate of duty paid or payable on the materials so used, both in words and figures, in relation to the finished goods to be exported.

⁷[(1B) The declaration filed under paragraph (1A) shall be accompanied by a Chartered Engineer’s certificate in respect of correctness of the ratio of input and output where a copy of the Standard Input Output Norms notified by Director General of Foreign Trade, Ministry of Commerce, if fixed, is made available to the Chartered Engineer before obtaining the certificate, in respect of goods manufactured or processed.]

⁸[(2) Approval of declaration.- The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise may grant permission to the applicant for manufacture or processing and export of finished goods before commencement of export of such goods on the basis of certificate issued by the Chartered Engineer and the declaration filed under paragraph(1A); Explanation: In case of doubt in respect of the correctness of such declaration, the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, may visit the factory and verify correctness of such declaration filed.]

(3) Procurement of material. - The manufacturer or processor shall obtain the materials to be utilised in the manufacture of the finished goods intended for export directly from the registered factory in which such goods are produced, accompanied by an invoice under rule 11 of the Central Excise Rules, 2002:

Provided that the manufacturer or processor may procure materials from dealers registered for the purposes of ⁹[the CENVAT Credit Rules, 2004] under invoices issued by such dealers.

¹⁰[Provided further that no CENVAT credit shall be availed by the manufacturer or the processor.]

(4) Removal of materials or partially processed material for processing. - The Assistant Commissioner of Central Excise or the Deputy Commissioner 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 or processing of finished 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 finished goods and return the same to his factory without payment of duty for further use in the manufacture of finished 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 or process; or

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

(c) any waste arising from the processing of materials may be removed on payment of duty as if such waste is manufactured or processed in the factory of the manufacturer or processor.

(5) Procedure for export. - The goods shall be exported on the application in Form A.R.E. 2 specified in the Annexure to this notification and the procedures specified in Ministry of Finance (Department of Revenue) notification No.19/2004-Central Excise (N.T.), dated the 6th September, 2004 or in notification No. 42/2001-Central Excise (N.T.), dated the 26th June, 2001 shall be followed.

(6) Presentation of claim of rebate. - The claim for rebate of duty paid on materials used in the manufacture or processing of goods ¹¹[shall be lodged, before the expiry of the period specified under section 11B of the Central Excise Act, 1944(1 of 1944),] only with the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise having jurisdiction of the place approved for manufacture or processing of such export goods.

Explanation: - "duty" means for the purposes of this notification, duties of excise collected under the following enactment, namely: -

(a) the Central Excise Act, 1944 (1 of 1944);

(b) the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);

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

(d) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended by Section 169 of the Finance Act, 2003 (32 of 2003) and further amended by Section 3 of the Finance Act, 2004 (13 of 2004);

(e) special excise duty collected under a Finance Act;

(f) additional duty of excise as levied under section 157 of the Finance Act, 2003 (32 of 2003);

⁴[(g) Education cess on excisable goods as levied under section 91 read with section 93 of the Finance (No.2) act 2004(23 of 2004).]

³[(h) the additional duty of excise leviable under clause 85 of the Finance Bill, 2005, the clause which has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law.]

¹[(i) the additional duty leviable under section  3 of the Customs Tariff Act,  1975  (51 of  1975), equivalent to the duty of excise specified under clauses (a),(b),(c),(d),(e) and (g) above.]

¹³[(j) Secondary and Higher Education Cess on excisable goods leviable under clause (126) read with clause(128) of the Finance Bill, 2007, which has, by virtue of declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law.

(k) Infrastructure Cess, leviable under sub-clause (1) of clause 159 of the Finance Bill, 2016, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law.]

 

Annexure

ARE 2 No.______________

Original (White)/Duplicate (Buff)/Triplicate (Pink)
Quadruplicate (Green)/ Quintuplicate (Blue)

Form A.R.E. 2

Combined application for removal of goods for export under claim for rebate of duty paid on excisable materials used in the manufacture and packing of such goods and removal of dutiable excisable goods for export under claim for rebate of finished stage Central Excise Duty or under bond without payment of finished stage Central Excise Duty leviable on export goods.

To

The Superintendent of Central Excise,

(Address)


___________________ (full postal address)

1. Particulars of the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise from whom rebate shall be claimed / with whom bond is executed and his complete postal address __________________.

2. I / We ______________ of ________________ propose to export the under mentioned goods (details of which are given in Table 1 below) to ____________________ (country of destination) by *air/sea / land /post parcel* under claim for rebate of duty paid on excisable materials used in the manufacture and packing of such goods.

3. *The finished goods being exported are not dutiable.

or

We intended to claim the rebate of Central Excise Duty paid on clearances of goods for export under notification No.19/2004-Central Excise (N.T.), dated the 6th September, 2004 issued under Rule 18 of Central Excise Rules, 2002.

or

The export goods are intended to be cleared without payment of Central Excise Duty under notification No.42/2001-Central Excise (N.T.), dated the 26th June, 2001 issued under Rule 19 of Central Excise (No.2) Rules, 2001.

TABLE 1

(Details of goods to be exported)

Sl. No.	Description of pack-ages	Marks and Nos. on pack-ages	Gross Weight	Net Weight and quan-tity of goods**	Des-crip-tion of finished goods	Value
1	2	3	4	5	6	7

 

Finished Stage Central Excise Duty		Invo-ice No. and date	Bond/ Under-taking execu-ted under rule 19 (if any)	Amount of Rebate Claimed under rule 18	Rema-rks
Rate	Amo-unt
8	9	10	11	12	13

*Strike out portion not applicable

**Quantity of goods to be furnished in units of sale where it is different than weight.

#Write NA where exports are under bond/letter of undertaking in terms of Rule 19 or where goods are not chargeable to duty.

TABLE 2

Details of duty paid on excisable Materials and Packing materials used in manufacture of export goods for which rebate under notification _________ dated _____ is being claimed

S. No.	Name/ description of materials/ packing with tech-nical specification/ Quan-tity	Cen-tral Excise Tariff Sub-head-ing	Unit	Qty used	Name of Supplier	Invoice No. and Value/ Unit (Rs.)
(1)	(2)	(3)	(4)	(5)	(6)	(7)

 

Ass-ess-able Value/ Unit (Rs.)	Rate of Central Exc-ise duty	Duty Amt. per unit (Rs.)	Total Wastages		Reb-ate admissible under rule 18 (Rs.)	Rem-arks
			Rec-over-able	Irre-cove-rable
(8)	(9)	(10)	(11)	(12)	(13)	(14)

Declaration:

(a) We hereby certify that we have not availed facility of CENVAT credit under ¹²[the CENVAT Credit Rules, 2004].

(b) We hereby declare that the export is not in discharge of export obligation under a Value based Advance License issued prior to 31.03.95.

(c) We hereby declare that the materials on which input stage rebate in claimed are not sought to be imported under a Quantity Based Advance License issued prior to 31.03.95.

(d) We further declare that we shall not claim any Drawback on export of the consignment covered under this application.

(e) I / We hereby declare that the above particulars are true and correctly stated.

(f) We have been granted permission by Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise Vide C.No. __________ date __________ for working under Notification No.21/2004-Central Excise (N.T.), dated the 6th September, 2004.

Time of Removal __________________

Signature of owner or his authorised agent with date

 

Name in Block Letters & Designation

SEAL

Note 1 : The A.R.E. 2 should be submitted by the manufacturer at least 24 hours before intended removal of goods for export, to the Superintendent of Central Excise.

Note 2 : A running serial no.of the factory starting with one in every financial year should be allotted to every A.R.E. 2.

 

FOR DEPARTMENT USE

PART A

CERTIFICATION BY THE CENTRAL EXCISE OFFICER

1. Certified that

*duty has been paid on the goods described above or duty is payable as recoded at entry number___ in Daily Stock Account.

or

*the owner has entered into B-1 bond No ____________ /given an Undertaking ______under Rule 19 of Central Excise Rules, 2002 with the ____________________________ or *the finished goods being exported are not dutiable.

2. Certified that I have opened and examined the packages No. ___________________ and found that the particulars stated and the description of goods given overleaf read with the invoice and the packing list (if any) correct *[and that all the packages have been stuffed in the container No. _______________ with Marks ________________]*and the same has been sealed with Central Excise Seal/*One Time Seal (OST) No. ________________

3. I have verified with the records, the declaration of the manufacture given at Sl. No. 3 overleaf regarding non-availment of credit under ¹²[the CENVAT Credit Rules, 2004] and found it to be true.

4. Certified that I have drawn three representative samples from the consignment and have handed over two sets thereof duty sealed to the manufacturer/ his authorised representative (wherever feasible).

5. Certified that the material consumption as indicated in Table 2 overleaf are in accordance with the declaration No. ________ filed by ________ on __________

Place : __________________

Date : __________________

Signature

Signature

(Name in Block Letters)

(Name in Block Letters)

Superintendent of Central Excise

Inspector of Central Excise

*Strike out inapplicable portions

Note 3 : The details given in Table 2 may be verified by the Superintendent of Central Excise subsequent to clearances. For this purpose, a detailed verification report may be submitted by the Superintendent to the Assistant/ Deputy Commissioner of Central Excise along with Triplicate copy of A.R.E.2 2.

Note 4 : The original -duplicate and Quintuplicate shall be returned to the manufacturer for presenting to the Customs Officer.

 

PART B

Certification by the Officer Of Customs

1. Certified that I have examined the consignment described overleaf and the seals on the packages were found intact and I have satisfied myself that particulars of the consignment are as specified overleaf except for the shortages mentioned below:
_____________________________________________________________________________________________

2. Certified that the exports are not under Duty Drawback Scheme. It is further certified that exports are not in discharge of export obligation under Value Based Advance License or a Quantity Based Advance License issued before 31.03.95.

3. Certified that all copies of Shipping Bill / Bill of export contain endorsement of A.R.E. 2 No. in the space provided for indicating ARE 1.

4. Certified that the consignment was shipped under my supervision under *Shipping Bill No. / Bill of Export No. ____________ dated _______________ which left for _________________ on _________________/ which passed the frontier on ____________

Duplicate copy of A.R.E. 2 Forwarded to Assistant/Deputy Commissioner of Central Excise ... on ........

Place

Date

Signature

(Name and designation of the Customs Officer in Block letters)

(Seal)

Note 5 : The customs shall send the duplicate to the address given at Sl. No. 1 overleaf and handover original and quintuplicate to the exporter.

 

PART C*

Rebate Sanction Order Under rule 18(1)
(On Original, Duplicate and Triplicate)

Refund Order No. ______________ dated ______________ Rebate of Rs. ___________ (Rupees _____________ sanctioned vide cheque No. ___________ dated ____________

Place ______________

Date ______________

Assistant/Deputy Commissioner of Central Excise

 

PART D

Rebate Sanction Order under rule 18(2)
(On Original, Duplicate and Triplicate)

Refund Order No. _______________ dated ______________________ Rebate of Rs. ____________________ (Rupees ________________________________ sanctioned vide cheque No. ___________________ dated __________________

Place __________________

Date _______________

Assistant/Deputy Commissioner of Central Excise

[F.No.209/24/2003-C.X.6]

*Strike out inapplicable portions

(Neerav Kumar Mallick)

Under Secretary to the Government of India

***************************

Notes :

1. Has been inserted vide Notification No. 12/2007 CE (NT) dated 1/3/2007

2. Has been inserted vide Notification No. 17/2007 CE (NT) dated 8/3/2007

3. Has been inserted vide Notification No. 15/2005 CE (NT) dated 1/3/2005

4. Has been substituted vide Notification No. 30/2004 CE (NT) dated 21/10/2004

5. Substituted vide notification no. 2/2012 CE(NT) dated 22-2-2012 w.e.f. 1.3.2012, before it was read as, “to any country except Nepal and Bhutan”

6. Renumbered as (1A) vide Not. 21/2016 - Dated 1-3-2016 w.e.f. 1st March, 2016

7. Inserted vide Not. 21/2016 - Dated 1-3-2016 w.e.f. 1st March, 2016

8. Substituted vide Not. 21/2016 - Dated 1-3-2016, w.e.f. 1st March, 2016 before it was read as,

"(2) Verification of Input-output ratio. - The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise shall verify the correctness of the ratio of input and output mentioned in the declaration filed before commencement of export of such goods, if necessary, by calling for samples of finished goods or by inspecting such goods in the factory of manufacture or process. If, after such verification, the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise is also satisfied that there is no likelihood of evasion of duty, he may grant permission to the applicant for manufacture or processing and export of finished goods."

9. Substituted vide Not. 21/2016 - Dated 1-3-2016, w.e.f. 1st March, 2016before it was read as, “the CENVAT Credit Rules, 2002”

10. Inserted vide Not. 21/2016 - Dated 1-3-2016 w.e.f. 1st March, 2016

11. Substituted vide Not. 21/2016 - Dated 1-3-2016,  w.e.f. 1st March, 2016 before it was read as,  “ shall be lodged ”

12. Substituted vide Not. 21/2016 - Dated 1-3-2016, w.e.f. 1st March, 2016 before it was read as,  “the CENVAT Credit Rules, 2002”

13. Substituted vide  Not. 26/2016 - Dated 5-5-2016  before it was read as,  ²[(j) Secondary and Higher Education Cess on excisable goods leviable under clause (126) read with clause (128) of the Finance Bill, 2007, which has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law]