Drawback on supplies made by DTA units to SEZ – Who Gives?
CBEC Circular No. dated 5th December, 2007 clarified that the Specified Officer posted in an SEZ is the appropriate authority for granting drawback in respect of goods supplied from DTA units to Developers and units in SEZ except where the unit or Developer issues a disclaimer to the DTA supplier in which case the Commissionerate of Central Excise /Customs & Central Excise having jurisdiction over the DTA unit would sanction drawback. With regard to issue of cheque books for disbursal of drawback claims, the circular provided that the jurisdictional Commissioner of Customs in consultation with the Pay & Accounts Officer shall make arrangements for issue of authorization and drawback cheque books (wherever EDI facilities are not available for directly crediting the said amount to the Bank Accounts of the exporters).
It has been reported by Central Excise formations that this arrangement of obtaining authorization and cheque books from the jurisdictional Custom Houses causes delays and some of the divisions are facing difficulties in getting the cheque books issued from the PAOs of the custom houses. It has been suggested that since drawback is required to be disbursed in a time bound manner and has interest clause, the procedure may be modified so as to allow the Commissioner of Central Excise and Customs/ Central Excise to sanction and disburse drawback claims without having to approach the jurisdictional Commissioner of Customs for issue of authorization and cheque books.
Now the Board clarifies that:-
The Commissioners of Central Excise or Customs and Central Excise, as the case may be, may issue authorization to Dy ./ Asstt . Commissioners of Central Excise posted in Divisions under them for the purpose of disbursing drawback to DTA units against disclaimers issued by SEZ units/developers.
The cheque book issued by the Pay & Accounts Officer of the jurisdictional Central Excise or the Customs and Central Excise Commissionerate, as the case may be, to the Central Excise Division for making refunds may be used for disbursement of drawback and the accounting procedure as laid down in the Principal, CCA's office letter No. Coord /2(8)/98/ 434 dated 13.06.2005 may be followed in this regard.
Board wants suitable Public Notice, standing order to be issued by the Commissioners.
CBEC Circular No. 39/2010-CUSTOMS, Dated : October 15, 2010