Duty Drawback for supplies to SEZ
CBEC has issued a circular explaining the scheme. As the SEZ scheme is effective from 11.5.2004, drawback is also eligible from that date. And the Board clarifies this after 9 months!
• The Deputy Commissioner /Assistant Commissioner posted in the SEZ shall be the authority for granting these drawback claims.
• triplicate copy of the assessed Bill of Export shall be treated as the drawback claim and processed in the Customs Section of the SEZ.
• The jurisdictional Commissioner of Customs in consultation with the Pay & Accounts Officer shall make arrangements for issue of authorisation and drawback cheque books ;
• It should be ensured that the claims are processed and amounts disbursed within the time limit prescribed by CBEC;
• In case of EDI Ports, the drawback amounts should be sanctioned within 3 working days and in case of such locations where the Shipping Bills are manually processed, drawback amount should be sanctioned within 5 working days.
The Board circular says that Circular No.24/2003-Customs, dated 1.4.2003, that had been issued for providing detailed guidelines in this regard was withdrawn vide Customs Circular No.2/2004-Customs dated 8.1.2004, as the date of effect of Chapter X-A (SEZ) of the Customs Act, 1962 had not been notified.
But look at what Circular No.2/2004 states,
Hence, the instructions contained in Circular No. 24/2003-Customs, dated 1-4-2003, concerning payment of duty drawback to the supplies from DTA Unit to the SEZ Unit, shall also become operative from the date when Chapter XA of the Customs Act, 1962 comes into effect.
That is as per Circular No. 2/2004, the instructions in Circular No. 24/2003 will come into force from 11.5.2004, when the SEZ scheme has come into effect. But now the Board Circular says that Circular No. 24/2003 was withdrawn when actually it was not. It was to come into force from 11.5.2004. Hasn’t it come into force? Any way now Board says that it is indeed effective from 11.5.2004. A lot of confusion can be avoided if Board stops issuing clarifications.
CBEC Circular No. 6 / 2005-Cus dated 3.2.2005