Served from India Scheme (SFIS) - domestic procurement of goods- Board issues instructions, but what about DFIA?
Board has issued instructions regarding the procedure to be followed for procurement of goods from units in India without payment of excise duty. These goods are exempted under Notification No. 34/2006 C.E. The procedure is like this:-
i) Produce the original scrip before the jurisdictional Central Excise officer for debiting of the duties leviable on the goods but for the exemption contained in notification No.34/2006-CE dated 14.6.2006.
ii) The jurisdictional Central Excise officer shall get the genuineness of the scrip verified from the Customs authorities at the Port of Registration along with the details of the last debit entry, if any when the scrip is received first time.
iii) The holder of the SFIS scrip shall intimate in writing the details of debit by Excise to the Customs authorities at the Port of Registration for entering full details of such debit by Excise in the records of Customs at the Port of Registration.
iv) The scrip holder shall give this intimation to Customs before clearance of any further consignment either by way of import or domestic procurement. The jurisdictional Central Excise officer shall also intimate in writing the details of debit made to the Customs authorities at the Port of Registration.
v) It shall be the responsibility of the scrip holder to ensure that he gives proper intimation of debit by Excise to the Customs authorities at the Port of Registration before further clearances.
vi) The Customs authorities at the port of registration shall permit duty debit on imports after verifying the details of debit, if any done by Central Excise authorities.
Board feels that this procedure would obviate the need for issue of TRAby the Customs authorities at the Port of Registration for debit by Excise, as original scrip would be produced to the Excise authorities for debit.
DDT had raised a question regarding the procedure for domestic procurement by DFIA holders. There is neither a notification nor a circular. Will the Board clarify?
CIRCULAR NO. , Dated: November 3, 2006