Cir. No.262/96/1996-CX, dt. 06/11/1996
- Document type
- Circular
- Reference no.
- C
- Dated
Payment of rebate
2. The matter has been examined by the Board.
3. Rule 12(i)(a) of Central Excise Rules read with Notification No. 41/94-CE (NT) dated 22/9/94 as amended provides, inter alia, theft the excisable goods shall be exported after payment of duty. There is no stipulation that such duty should be paid only by cash or through PLA. "Chapter V(AA) dealing with MODVAT on inputs and Chapter V(AAAA) dealing with MODVAT on capital goods do not prohibit payment of rebate in cash/by cheque.
4. The provisions relating to capital goods under sub-rule (3) of Rule 57S merely provide that the credit of duty available in RG 23C Part II account shall not be refunded in cash or by cheque. However, rebate of duty paid on the goods exported by utilising credit in RG 23C Part II Account stand on different footings.
5. Moreover, the Board has already clarified that rebate of duty paid through RG 23A Part II is admissible- by Circular No. 153/64/95-CX dated 12th October, 1995. The same will also apply to rebate of duty paid through RG 23C Part II.
6. It is, thereof clarified that rebate of duty paid through RG 23C part II is also admissible and is permitted to be paid in cash/through cheque.
7. All pending claims should disposed of expeditiously in view of above clarification.
Sd/-
(P.K.Sinha)
Under Secretary to the Govt., of India