Procedure for Reimbursement of Duty (RoD) in lieu of drawback for supply of goods to SEZ Developers against Indian Rupees
The Empowered Group of Ministers (EGoM) on SEZ in its meeting held on 7th August 2008 agreed to the request received from the various quarters for “Reimbursement of Duty” (‘RoD') for supply of goods to SEZ Developers against Indian Rupees. Accordingly Rule 30(8) of SEZ Rules has been amended vide GSR 72(E) dated 3rd February 2009.
In terms of the said Rules, the following procedure shall be followed for ‘RoD' in lieu of drawback against supply of goods to SEZ Developers:-
(i) The Developer shall file a duty reimbursement claim in prescribed format (designated as Form‘1') with the Development Commissioner within a period of twelve months from date of payment on a monthly or quarterly basis at the option of claimant.
(ii) On applications received within six months after the expiry of last date, 2% cut shall be imposed. In case application is received after this period but within another six months, 5% cut shall be imposed.
(iii) The developer shall enclose the following documents in original along with the self attested copies:
(a) Assessed triplicate copy of bill of export;
(b) Original invoice of the supplier issued under Rule 11 of Central Excise Rules 2002;
(c) Original ARE-1, if applicable;
(d) Proof of payment in (Form ‘2')
(e) Disclaimer Certificate from DTA supplier on letter head that no CENVAT on raw material has been availed.
The ‘RoD' shall be given on the basis of “All Industry Rate of drawback”. In cases where “All Industry Rate of drawback” is not available for the product on which reimbursement is sought, the developer can claim the reimbursement on the basis of actual duty paid subject to submission of original duty paid documents.
On receipt of application complete in all respects, the Development Commissioner shall process the reimbursement claim and if satisfied that the claim is in order, shall sanction the claim within 30 days of such claim being filed.
After processing of reimbursement claim, original documents evidencing payment shall be defaced with the remark ‘Duty Paid/Rejected'. Five percent of Bank Certificates and Duty paying documents shall be sent for verification to the respective Banks/Commissionerates post sanction. The claims shall be selected at random personally by the Development Commissioner every 6 months.
The ‘RoD' can also be claimed by DTA supplier based on the disclaimer certificate issued by SEZ developer.
Reimbursement of Duty shall be admissible w.e.f. 10.2.06. In respect of goods received in the SEZ prior to this Notification, duty claim shall be filed within 6 months from the date of this Notification.
If the RoD is admissible from 10.02.06 as provided above, then going by the time period for claiming reimbursement as provided for at sub clauses (i) and (ii) above, it would be interesting to see how claims for goods received in an SEZ after 10.02.06 but payments made therefor prior to February 2007 could be processed. Because in such cases it could be beyond the two six monthly extension that is possible as per sub clause (ii) above.
Ministry Instruction No. , Dated: February 18, 2009