9911796707
TMI BlogExport of excisable goods under Rule 18 of the Central Excise Rules, 2002 by using the materials imported under advance licence - Availing of rebate of duty paid on the said goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... dated 26-9-2006 on the above subject and to say that the matter has been examined by the Board. 2. To understand the issue in proper perspective, it will be necessary to know the relevant CE Rules and the notifications governing imports/exports under Advance License Scheme as they have evolved over the years. 2.1 The erstwhile Rule 12 of CE Rules, 1944 dealt with grant of rebate (a) of duty paid on the excisable goods; and (b) duty paid on materials used in the manufacture of export goods. Rule 13 dealt with (a) export of excisable goods in bond without payment of duty; and (b) removal of excisable materials without payment of duty for the manufacture of export goods. These rules have now been replaced by Rule 18 and Rule 19 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CE Rules, 2002 . However, at the time of issue of notification No. 43/2002-Cus. an inadvertent error occurred in condition (v) of the said notification inasmuch as, it debarred the benefit of the Advance Licence Scheme if the licence holder had availed of any rebate of duty under Rule 18 of the CE Rules 2002 [under which an exporter could avail of the rebate of excise duty paid on the materials used in the manufacture of export products as also the terminal excise duty paid on the export products]. Since right from the beginning the objective of condition (v) was to debar the simultaneous availment of rebate of duty paid on the materials and the benefit of Advance Licence Scheme only (there was no bar in the said condition from avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime at the time of issuance of Notification No. 93/2004-Cus . pursuant to coming into force of the new Foreign Trade Policy w.e.f. 1-9-2004. The inadvertent error crept in because of a minor variation in the language of Rule 12(1) of CE Rules, 1944 (which had two parts - one dealt with rebate of duty paid on the excisable goods and the other dealt with rebate of duty paid on materials used in the manufacture of export goods) and the new Rule 18 under which both the facilities are available without differentiation being shown part wise. 4. Thus, the position as of now is that in case of exports under Advance Licence Scheme the exporter cannot avail of rebate of duty paid on the input materials but he can avail of the rebate of the termin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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