Circular No_510/06/2000-CX — THE CENTRAL EXCISE ACT, 1944

Circular No_510/06/2000-CX FNO.209/29/99-CX.6 Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs New Delhi;, the 3, Feb. 2000 Subject: Export 77F simplified procedure re-determination of rebate under Rule12813 It is directed to say that doubts have arisen relating to the determination of the amount of rebate of excise duty in cases where prices of export-goods are doubted in foreign currency and as Valero excise duty is paid after converting the value in equivalent Indian rupee. Another doubt is that once duty is paid, should rebate be reduced and if the rebate is reduce, can the manufacturer be allowed to take reaccredit of the duties paid through debits in RG-23A Part-Il or RG-23C Part-Ilon the relevant export goods? Yet another doubts is that in case any short payment is detected but the assessee pays the duty prior to sanction of rebate, wether the rebate amount should be reduced? 2 The Board has examined the matter: Itis clarified that in aforementioned case, the duty on export goods should be paid by applying market rate as it prevails at the time the duty is paid on such goods. Once value (in accordance with section 4 of the Central Excise Act; 1944) is determined and duty is paid, rebate has to be allowed equivalent to the duty paid. Board has already clarified in Circular No. 203/37/96-CX dated 26.4.96 that AR-4 value is to be determined under section 4 of the Central Excise Act; 1944 and this value is relevant for the purposes of rule 12 & rule 13. Thus, the duty element shown on AR-4 has to be rebated, if the jurisdictional Range officer certifies it to be correct There is no question of re-quantifying the amount of rebate by the rebate sanctioning authority by applying some other rate of exchange prevalent subsequ