Problems faced by the Merchant Exporters of cotton madeups in getting the rebate of duty paid at the intermediate stage under Rule 12(1)(b) and Notification No. 42/94-C.E. (N.T.), dated 22-9-1994 - Central Excise - 164/75/95-CX

Problems faced by the Merchant Exporters of cotton madeups in getting the rebate of duty paid at the intermediate stage under Rule 12(1)(b) and Notification No. 42/94-C.E. (N.T.), dated 22-9-1994 Circular No. 164/75/95-CX Dated 18-12-1995 [From F. No. 209/63/95-CX.6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Problems faced by the Merchant Exporters of cotton madeups in getting the rebate of duty paid at the intermediate stage under Rule 12(1)(b) and Notification No. 42/94-C.E. (N.T.), dated 22-9-1994. It has been represented to the Board by the Cotton Textile Export Promotion Council that Merchant Exporters of cotton madeups are facing difficulties in getting the rebate of duty paid at the inputs stage. It has been further stated that the merchant exporters were being allowed to export the goods directly from the factory of the manufacturer of export goods working under Rule 191A/12 (1) (b) on AR-4/AR-5 form used for export bearing the name of such merchant exporters in addition to the name of the manufacturer of the said export goods. 2. In this regard attention has been invited to para 2.3 of the Board Circular No. 129/40/95-CX, dated 29-5-1995 according to which benefit of input stage rebate can be claimed by a manufacturer of finished goods only if the export is in his own name. It has been further stated that benefit of the input stage rebate shall not be extended where the exports are through merchant exporters. Thus the grant of input duty which was earlier available under sub-rule 17 of Rule 191A, was denied by these instructions. 3. The issue has been re-examined by the Board. It is observed that Rule 12 and the Notification No. 42/94-C.E. (N.T.), do not restrict the benefit of rebate of inputs only to the manufacturer exporter. As such it has been decided to allow the rebate of duty paid on the inputs to the merchant exporters in aforesaid type of cases where the export goods are directly cleared from the factory and the name of the merchant exporter also appears on AR-5 subject to fulfillment of other conditions prescribed in this behalf. The Board's earlier Circular No. 129/40/95-CX, dated 29-5-1995 is modified to this effect. 4. Trade and field formations may be informed suitably.