Amendments in the Customs and Central Excise Duties Drawback Rules, 1995 - 020/03 - Customs - Non Tariff

Amendments in the Customs and Central Excise Duties Drawback Rules, 1995 3 rd March, 2003. Notification No. 20/2003 - Customs (N.T.) In exercise of the powers conferred by sub-section (2) of section 75 of the Customs Act, 1962 (52 of 1962) and section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Customs and Central Excise Duties Drawback Rules, 1995, namely:- 1. Short title and commencement - (1) These rules may be called the Customs and Central Excise Duties Drawback (Amendment) (No.2) Rules, 2003. 2. They shall come into force on 1 st April, 2003. 3. In the Customs and Central Excise Duties Drawback Rules, 1995 (hereinafter referred to as the said rules), in rule 6,- (1) in sub-rule 1,- (i) for clause (a), the following clause shall be substituted, namely:- "(a) Where no amount or rate of drawback has been determined in respect of any goods, any manufacturer exporter or exporter of such goods may, within sixty days from the date relevant for the applicability of the amount or rate of drawback in terms of sub-rule (3) of rule (5), apply in writing to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, having jurisdiction over the manufacturing unit, of the manufacturer exporter or, of the supporting manufacturer, as the case may be, for determination of the amount or rate of drawback thereof stating all the relevant facts including the proportion in which the materials or components are used in the production or manufacture of goods and the duties paid on such materials or components: Provided that such Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, may, if he is satisfied that the manufacturer exporter or exporter was prevented by sufficient cause from filing the application within the aforesaid time allow such manufacturer exporter or exporter to file such application within a further a period of thirty day"; (ii) In clause (b), for the words "Central Government", the words "Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be", shall be substituted; (2) in sub-rule (2), – (i) in clause (a), for the words "Central Government", the words "Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be", shall be substituted; (ii) for clause (b), the following clause shall be substituted, namely:- "(b) The Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, may, after considering the application, allow provisionally payment of an amount not exceeding the amount claimed by the manufacturer exporter or exporter in respect of such export: Provided that the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, may, for the purpose of allowing provisional payment of drawback in respect of such export, require the manufacturer exporter or exporter to enter into a general bond for such amount, and subject to such conditions, as he may direct; or to enter into a bond for an amount not exceeding the full amount claimed by such manufacturer exporter or exporter as drawback in respect of a particular consignment and binding himself,- (i) to refund the amount so allowed provisionally, if for any reason, it is found the duty drawback was not admissible; or (ii) to refund the excess, if any, paid to such manufacturer exporter or exporter provisionally if it is found that a lower amount was payable as duty drawback: Provided further that when the amount or rate of drawback payable on such goods is finally determined, the amount provisionally paid to such manufacturer exporter or exporter shall be adjusted against the drawback finally payable and if the amount so adjusted is in excess or falls short of the drawback finally payable, such manufacturer exporter or exporter shall repay to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, the excess or be entitled to the deficiency, as the case may be"; (iii) in clause (c), for the words "Commissioner of Customs", the words "Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be" shall be substituted; (3) for sub-rule (3), the following sub-rule shall be substituted, namely:- "(3) Where the Central Government considers it necessary so to do, it may- (a) revoke the rate of drawback or amount of drawback, determined under clause (b) of sub-rule (1) by the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be; or (b) direct the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, to withdraw the rate of drawback or amount of drawback determined." 4. In rule 7 of the said rules,- (i) for sub-rule (1), the following rule shall be substituted, namely:- "(1) Where, in respect of any goods, the manufacturer exporter or exporter finds that the amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, for the class of goods is less than four-fifth of the duties paid on the materials or components used in the production or manufacture of the said goods, he may within sixty days from the date relevant for the applicability of the amount or rate of drawback in terms of sub-rule (3) of rule (5), make an application in writing to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise having jurisdiction over the manufacturing unit, of the manufacturer exporter or, of the supporting manufacturer, as the case may be, for determination of the amount or rate of drawback thereof stating all relevant facts including the proportion in which the materials or components are used in the production or manufacture of goods and the duties paid on such materials or components: Provided that the Commissioner of Central Excise or the Commissioner of Customs and Central Excise may, if he is satisfied that the manufacturer exporter or exporter was prevented by sufficient cause from making the application within the aforesaid time, allow such manufacturer exporter or exporter to make such application within a further period of thirty days."; (2) in sub-rule (2), for the words "Central Government" the words "Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be", shall be substituted; (3) for sub-rule (3), the following sub-rule shall be substituted, namely:- "(3) Where an exporter desires that he may be granted drawback provisionally, he may, while making an application under sub-rule (1), apply to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, in writing in this behalf in the manner as has been provided in clause (a) of sub-rule (2) of rule 6 for the applications made under that rule and the grant of provisional drawback shall be considered in the manner and subject to the conditions specified in clauses (b) and (c) of sub-rule (2), and sub-rule (3) of rule 6, subject to the condition that bond required to be executed by the claimant shall only be for the difference between amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4 by the Central Government and the provisional drawback authorised by the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, under this rule. "(4) Where the Central Government considers it necessary so to do, it may- (a) revoke the rate of drawback or amount of drawback, determined under sub-rule (2) by the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, or (b) direct the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, to withdraw the rate of drawback or amount of drawback determined." 5. In 9 of the said rules, in clause (d), for the words " the Central Government to be relevant or useful", the words, "Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, to be relevant or useful", shall be substituted. 6. In rule 13 of the said rules, in sub-rule (2), in clause (iv), for the words "Central Government", the words "Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be" shall be substituted. 7. In rule 15 of the said rules, in sub-rule (1),- (i) for the words ‘Central Government’, the words ‘Central Government or Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, shall be substituted; (ii) in the second proviso, in clause (a), for the words, "Assistant commissioner of Customs" the words, "Assistant Commissioner of Customs and Central Excise or Assistant Commissioner of Central Excise, as the case may be," shall be substituted; (iii) in the second proviso, in clause (b), for the words, "Commissioner of Customs", the words, "Commissioner of Customs and Central Excise or Commissioner of Central Excise, as the case may be," shall be substituted. S.S. Renjhen Joint Secretary to the Government of India F.No.609/18/2003-DBK. Note: The Customs and Central Excise Duties Drawback Rules, 1995, were notified vide Customs notification No.37/95-Cus.(NT) dated 26 th May, 1995 which was published in the Gazette of India (Extraordinary), vide GSR No.441(E) dated the 26 th May, 1995 and was last amended by Customs notification No. 19/2003-Cus.(NT) dated 3 rd March, 2003, published in the Gazette of India (Extraordinary), vide GSR No.185(E) dated the 3 rd March, 2003.