Clearance of excisable goods for manufacture of export goods- export only under Rule 19
As per Rule 19(2) of the central excise Rules, 2002, goods can be removed without payment of duty for manufacture of export goods subject to the procedure prescribed under Notification No.43/2001 –CE(NT). This notification was amended by notification No.10/2004 – CE(NT) dt.3.6.2004 to stipulate that the resultant goods manufactured out of these duty free goods has to be exported under the procedure prescribed under notification No. 42/2001 – CE(NT). Board had also issued a circular stating that the amendment was only clarificatory. If the amendment was clarificatory, the question that arose was whether it had retrospective effect. Seven months and several show cause notices later, Board now clarifies that the clarificatory amendment will have only prospective validity from 3.6.2004.
The whole crux of the notification is that exports cannot be made under claim for rebate. TIOL in its “looking back, the year 2004” had wondered why this restriction at all.
Board circular No. dt.11.1.2005