TMI BlogProblems faced by Merchant Exporters regarding availment of drawback on garments - regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... d those made thereafter till the Finance Bill was enacted.) Though normally it is the actual manufacturer who is to pay duty of excise leviable on any commodity, considering the peculiar and very decentralised nature of garment producing sector certain special provisions have been made, wherein the merchants who get their garments produced by supplying materials to producing job working units have been recognised for registration/ duty payment etc. purposes. Vide Rule 4(3) of Central Excise (No.2) Rules, 2001, a merchant manufacturer, i.e., a merchant, who gets the goods manufactured from a job worker on his own account, is required to pay duty on the garments manufactured on his behalf on job work basis, either himself or authorise such jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to furnish such certificate in every case. Further, it has also been represented that most of garment exporters are merchant-manufacturers who are exempted from the levy of Central Excise as their domestic clearances do not exceed Rs.1 crore. They have, therefore, requested that instead of insisting on a Cenvat non-availment certificate in every case, drawback at higher rate may be permitted on the basis of suitable declaration from such exporters. The Department could check independently if need be to check its veracity. 4 The issue and request has been examined and the production and export pattern and system of excise control and duty payment/CENVAT in garment industry also looked into. It is observed that in the case of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of these declarations 8 The Custom Houses shall get the veracity of the declaration given by the exporters and their supporting manufacturers/ job workers, verified at random by the jurisdictional Deputy / Assistant Commissioner of Central Excise on quarterly basis. The criteria for random selection of such declarations to be verified by the Excise authorities, may be formulated by the Commissioner of Customs. If on verification any misdeclaration is discovered, the higher drawback granted by the Customs would be recovered and only lower benefits admitted for future shipments to such exporters. 9 All Chief Commissioners of Central Excise are requested to cause preparation of a list of all duty paying manufacturing and me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Commissionerate/ Division/Range: 5 Address of the Manufacturing Unit(s)/ Job Work Premises: We, M/s. _________________ , the Exporters of the above mentioned goods, hereby declare that - (a) we are not registered with Central Excise authorities, (b) we have not paid any Central Excise duty on these goods, and (c) we have not availed of the Cenvat facility under the CENVAT Credit Rules, 2001 or any notification issued thereunder, and (d) we have not authorised any supporting manufacturer/job-worker to pay excise duty and discharge the liabilities and comply with the provisions of Central Excise (No.2) Rules, 2001, under the proviso to Rule 4(3) of the said Rules. We also undertake that in case it is discovered th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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