Procedure to re-credit 4% Special Additional Duty (SAD) of Customs in DEPB, VKGUY, FPS, FMS, MLFPS scrips - DGFT clarifies
REFER Customs Notification No. dated 14th September, 2007 (as amended), Customs Circular No. dated 28th April, 2008 and dated 9th February, 2009 on the provision to re-credit the 4% SAD to applicants who qualify for the re-credit subject to compliance of the conditions stated therein. This re-credit facility is available in case of debit of the 4% SAD from the duty credit scrips such as DEPB , VKGUY , FPS and FMS Scrips subject to fulfilment of the conditions.
Various importers, exporters, trade and industry associations have sought clarification regarding the procedure for re-credit of 4% Additional Duty of Customs (SAD) leviable under sub-section (5) of Section 3 of the Customs Tariff Act, 1975 in pursuance of Notification No. dated 14.9.2007 and the Customs circulars stated above. Department of Revenue have also referred the matter for a corresponding procedure for re-credit for uniform action by the field formations of DGFT and the Customs.
Accordingly DGFT had issued Policy Circular No. 22 dated 3.2.2010 wherein the detailed procedure for re-credit of 4% Special Additional Duty (SAD) in the Duty credit scrip was laid down. It was stated therein that “ in case the validity of the scrip is less than 6 months on the date of submission of request to the RA, the scrip may be revalidated for 6 months from the date of endorsement for utilization of the re-credit amount so allowed by the RA.
CBEC had also recently issued a Circular No. dated - 13.08.2010 (see - 16.08.2010)
It seems representations have been received from Trade and Industry that re-credit and revalidation of the scrips is not being allowed in cases where validity of the scrips submitted for such re-credit may have expired on or before the date of submission of the request to the Regional Authority.
DGFT now clarifies,
Intention of the aforesaid provision for revalidation is to allow the utilization of the re-credited amount. Hence, it is clarified that the validity of the re-credited scrips shall be six months from the date of endorsement by Regional Authorities or the original validity of the duty credit scrip, whichever is later. This revalidation shall be irrespective of the fact as to whether the scrip has expired on or before the date of submission of the scrip to the Regional Authority. All the Regional Authorities shall take appropriate action accordingly .
When will we be able to make things simpler?
DGFT Policy Circular No. 02/2009-2014, Dated : October 8, 2010