Advance authorisation - bank guarantee - limit of Rs. 1 crore - CBEC clarification
The manufacture exporters registered with Central Excise who have paid excise duty of Rs. 1 crore or more during the preceding financial year are exempted from executing bank guarantee under Advance Authorisation and EPCG Schemes in terms of Para 3.1(e) of CBEC Circular No. 58/2004-Cus, dated 21.10.2004.
There were doubts whether the limit of Rs. 1 crore of Central Excise duty prescribed in the Circular refers to duty payment from PLA only or whether payments through Cenvat credit accounts can also be taken into consideration while calculating the total duty paid by an assessee.
Board has examined the matter and clarifies that the excise duty paid through Cenvat credit shall also be taken into account while calculating the excise duty paid by a manufacturer exporter for the purposes of Para 3.1(e) of the circular.
CIRCULAR NO., Dated : August 21, 2007