Rebate on export of unmanufactured tobacco – Complicated formula
NEXT time you hire a consultant or lawyer for your Central excise work, be sure to check up whether he has a sound knowledge of mathematics.
The CBEC has notified rebate for exports of Unmanufactured tobacco, bearing a brand name, falling under tariff heading 2401 and chewing tobacco falling under tariff item 2403 99 10 and on which duty of excise has been paid under section 3A of the Central Excise Act, 1944.
The extent of rebate is ‘monthly average rate of rebate per pouch' subject to a ‘maximum amount of rebate per pouch'.
Now this ‘monthly average rate of rebate per pouch' is D divided by Q, where,
D = Total duty paid for a month for the packing machines used for manufacture of Chewing Tobacco or Unmanufactured Tobacco of the Retail Sale Price which has been exported
Q = Total quantity of pouches manufactured from said machines in the month
Explanation1 .- For the removal of doubts, it is hereby clarified that for the purposes of calculating D and Q, all packing machines used for manufacture of goods of said Retail Sale Price which has been exported, shall be taken into account whether the goods manufactured from said machines have been cleared for export or for other clearances.
Explanation2 :- Total duty paid for a month shall include the duty paid by utilisation of cenvat credit.
The ‘maximum amount of rebate per pouch' means the amount of rebate calculated in the following manner:-
“Duty payable per machine per month as provided in Notification No dated 27th February, 2010 divided by Total number of pouches deemed to be produced per machine as per rule 5 of the said rules”.
Very simple – try getting the rebate!
Notification No. , Dated: May 18, 2010