Board Explains Drawback Rules Amendments
WHILE commenting on the amendments to the Drawback Rules, - 21.06.2010, had observed,
Now after the amendment, the manufacturer has to apply to the Commissioner within three months and the delay will be condoned by the Assistant Commissioner . How this is possible? In short, before this amendment, the rule and the proviso were in harmony as both contained Commissioner. Now it is disturbed. Rule says Commissioner and proviso AC.
May be the assessee should apply to the Commissioner with a copy to the AC for condonation of delay and the poor Commissioner should ask his AC, “Sir, have you condoned the delay so that I can go ahead with the file?”.
Now the Board clarifies this: The applications for fixation of Brand Rate of drawback have to be filed in the office of the Commissioner of Central Excise (or Customs & Central Excise) as provided in rules 6 and 7 of the Customs, Central Excise & Service Tax Drawback Rules, 1995 and as already advised vide the above mentioned circular. If there is a delay in making the application, the Assistant/Deputy Commissioner of Central Excise (Technical) or such other Assistant/Deputy Commissioner in the office of the Commissioner of Central Excise who has been assigned the work relating to fixation of Brand Rate of drawback, may grant the first extension of upto 3 months. If the delay is of more than 3 months, extension may be granted only by the Commissioner.
Further, Rule 16A (4) of the Customs, Central Excise & Service Tax Drawback Rules, 1995 has been amended to provide that in cases where the sale proceeds are realized by the exporter after the amount of drawback has been recovered from him under Rule 16A (1) of the Drawback Rules, 1995 due to non realization of export proceeds, he shall be allowed to produce evidence of such realization within a period of 3 months from the date of realization of export proceeds instead of the previous provision of one year from the date of recovery of amount of drawback provided the foreign exchange has been realized within the period permitted by RBI. The period may be extended by the Commissioner of Customs by 9 months subject to the condition that the amount has been realized on a date covered by the extensions of time limit given by the RBI for realizing export proceeds. Application fee equivalent to 1% of the FOB value of exports or Rs. 1000/-, whichever is less, shall be payable for applying for grant of extension by the Commissioner.
CBEC Circular No. 13/2010-Cus., Dated: June 24, 2010