clarification

[kamal chordia]

Dear Sir

Please note that earlier in 2006 we had filed Rebate Refund claim under Rule-18 with respect of duty paid on input as well as on the final product as per notification no 21/2004 CE (NT) dt 06.09.2014.

For which we had taken permission of Input/Output norms from C.Ex department.

Now in today's date should we require to again take permission from central excise department with respect to notification no 21 or earlier permission which we had taken in 2006 will prevail on today date.

Please clarify.

Kamal

[Rajagopalan Ranganathan]

Sir,

Para (1) of Notification No.21/2001-CE (NT) dated 06.09.2004 stipulated that "the manufacturer or processor shall file a declaration with the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture describing the finished goods proposed to be manufactured or processed along with their rate of duty leviable and manufacturing/processing formula with particular reference to quantity or proportion in which the materials are actually used as well as the quality. The declaration shall also contain the tariff classification, rate of duty paid or payable on the materials so used, both in words and figures, in relation to the finished goods to be exported. It does not prescribe any time limit for its validity. Therefore the declaration to be made is one time affair. However if there is any change in rate of duty due to Budget proposals, then you have file a revised declaration.

[KASTURI SETHI]

Sh.Kamal Chordia Ji,

I endorse the views of Sh.Rajagopalan Ranganathan Sir. Authority : Para No.2.2 (2.5) of Chapter 7 Part-VI of CBEC's Excise Manual of Supplementary Instructions, 2005 as amended.

[kamal chordia]

Yes, I agree with the opinion of Sh Ranganathan Ji and KASTURI SETHI Ji.

But if permission taken in 2006 with respect to notification no 21/2004 and thereafter if we again start export under this route in 2016, then should we need to take fresh permission from central excise Deptt or the permission taken in 2006 will serve our purpose.

Thanks & regards

Kamal

[KASTURI SETHI]

Sh.Kamal Chordia Ji,

As per Board's instructions you are to take permission again only if there is any change in input-output ratio. Change may be because of any reason not because of any budgetary changes. Change can occur because of advancement in science & technology.( New machinery, machines are computerized and revolution in information technology, modern ways and means to enhance the production etc. are vital factors to be considered.) As per Board's instructions, permission already taken in 2006 is still valid but there has been a considerable gap of 10 years since the last permission. Keeping in view the advancement in Science & Technology, earlier criteria adopted for arriving at input-out ratio may have lost its sheen. Moreover as per Board's instructions issued under F. No. 96/85/2015-CX.I, dated 7-12-2015(Para No.B.45), CBEC's Excise Manual of Supplementary Instructions, 2005 is being examined for revision of instructions contained therein.

In view of the above, it is better for you to opt for revised input-out ratio as a precautionary measure. It is your own interest. You will also be tension free.Latest permission based on latest formula for input-out ratio will be liked by every officer of the department. These are the practical benefits. There is no harm if you go ahead with the latest.

 

[KASTURI SETHI]

I want to add further new machinery yields better results regarding input-output ratio instead of old and used/worn out machinery. This is also one of the factors for change in input-out ratio.

[Suryanarayana Sathineni]

Dear Sirs,

The views expressed by all our friends are absolutely right. However, as a matter of abundant caution,it would be better to inform the department about exporting the product under the said procedure in terms of the permission given in 2006 in case there is no change whatsoever in the parameters considered in the said permission.

Regards

suryanarayana

AI Summary

Declaration under export rebate notification - one time filing remains valid; obtain fresh permission if input output ratio changes. The export notification requires a one time declaration describing finished goods, formula, tariff classification and duty on materials; it remains valid without a prescribed time limit but must be revised if duty rates change. Permissions granted earlier (e.g., in 2006) continue to operate unless the input output ratio or other material production parameters have changed, in which case fresh permission or an updated declaration is advised, and informing the department before resuming exports under an old permission is prudent.