Customs, Central Excise and Service Tax Drawback Rules, 1995 Amended
CONSEQUENTLY, the Government has also amended the Customs, Central Excise and Service Tax Drawback Rules, 1995. This too comes into effect from 23rd November 2015.
1. "wheat" is brought under the brand rate mechanism.
2. At present, after export, a complete application for determination of brand under rule 7 of these Rules has to be filed at the Central Excise office to enable issuance of provisional drawback letter. The sub-rule (3) of Rule 7 has been amended so that Central Government may specify an amount for payment as provisional drawback by proper officer of Customs. Notification No. 110/2015-Customs (N.T.), dated 16.11.2015 (paragraph 3) specifies this amount as equivalent to the Customs component of AIR corresponding to the export goods, if applicable, and subject to the same conditions as applicable to a claim for the 'B' column in the Schedule.
3. The amount paid as provisional drawback shall be taken into account by the Central Excise to authorize further provisional drawback, where necessary.
4. A modified procedure for export under claim for brand rate under rule 7 of Drawback Rules 1995 has been prescribed.
The brand rate facilitation in terms of Para's 5A-5C of Instruction No. 603/01/2011-DBK dated 11.10.2013 would continue and there should be no delay by Central Excise formations in finalizing applications for fixation of brand rate.
Board expects the Commissioners to ensure due diligence to prevent any misuse. The shipping bills with parameters considered to be sensitive should be handled with adequate care at the time of export itself. Further, in case of claim of the composite (higher) rate of AIR, the processing should specifically ensure availability of 'Non-availment of Cenvat certificate' etc. at the export stage itself. There is also need for continued scrutiny for preventing any excess drawback arising from mismatch of declarations made in the Item Details and the Drawback Details in a shipping bill. It may continue to be ensured that exporters do not avail of the refund of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods through any other mechanism while claiming AIR.
CBEC Circular No. 29/2015-Customs, Dated: November 16, 2015 and Notification No. , Dated: November 16, 2015