Under the Merchandise Exports from India Scheme (MEIS), are we required to submit copies of shipping bills, e-BRC, proof of landing, etc., for registration of the duty credit scrip with the Customs?
Public Notice no. 58/2015-16 dated August 10, 2015 issued by the Customs at JNPT, Nhava Sheva deals with registration of duty credits issued under the MEIS scheme. It does not mention anything about submission of such documents for registration of the MEIS duty credit scrips.
We have submitted our application for fixation of brand rate to our Central Excise authorities. They have rejected the application on the grounds that our application is time-barred. Do we have any recourse?
As per Rule 6 of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, you must submit your application for fixation of brand rate within three months from the relevant date (usually the date of export). If you are late, you can pay a fee of Rs 1,000 or 1% of the FOB value of exports, whichever is less, and seek an extension of a further three months. You can ask the Commissioner to grant further time of six months by paying a fee of Rs 2,000 or 2% of the FOB value of exports, whichever is less. Please refer to the proviso to the said Rule 6.
No. Advance authorisation is available to manufacturers or merchant exporters tied to supporting manufacturers. The imported goods are subject to ‘Actual User’ condition. They cannot be sold in the domestic market. They must be used in factory of the manufacturer or supporting manufacturer.
Where can we find instructions for maintaining Central Excise records in electronic form?
You may refer to Part III of Chapter 6 of the CBEC’s Central Excise Manual of Supplementary Instructions for electronic maintenance of records and preparation of returns and documents.
We are a 100% EOU. The audit department has now raised an objection regarding payment of basic custom duty by using our Cenvat Credit on sales to domestic tariff area (DTA) in February 2009. Can we take a plea that we have destroyed the records because as per Para 2.1 (vi) of Chapter 6 of the CBEC’s Central Excise Manual, we are required to preserve the records only for a period of five years immediately after the financial year to which such records pertain?
Yes. You can also say that what the EOU pays on DTA sales is excise duty and not customs duty. You may refer to the judgment in the case of Vikram Ispat [2000 (120) ELT 0800 (Tri-LB)], wherein it is held that the nature of the duty levied on goods from a 100% EOU is excise duty and nothing else, whereas for determining the quantum of duty the measure adopted is duty leviable under the Customs Act as held by the Supreme Court in many cases.
Public Notice no. 58/2015-16 dated August 10, 2015 issued by the Customs at JNPT, Nhava Sheva deals with registration of duty credits issued under the MEIS scheme. It does not mention anything about submission of such documents for registration of the MEIS duty credit scrips.
We have submitted our application for fixation of brand rate to our Central Excise authorities. They have rejected the application on the grounds that our application is time-barred. Do we have any recourse?
As per Rule 6 of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, you must submit your application for fixation of brand rate within three months from the relevant date (usually the date of export). If you are late, you can pay a fee of Rs 1,000 or 1% of the FOB value of exports, whichever is less, and seek an extension of a further three months. You can ask the Commissioner to grant further time of six months by paying a fee of Rs 2,000 or 2% of the FOB value of exports, whichever is less. Please refer to the proviso to the said Rule 6.
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As traders, can we obtain advance authorisation and import the goods free of duty and re-sell them in the domestic markets?
No. Advance authorisation is available to manufacturers or merchant exporters tied to supporting manufacturers. The imported goods are subject to ‘Actual User’ condition. They cannot be sold in the domestic market. They must be used in factory of the manufacturer or supporting manufacturer.
Where can we find instructions for maintaining Central Excise records in electronic form?
You may refer to Part III of Chapter 6 of the CBEC’s Central Excise Manual of Supplementary Instructions for electronic maintenance of records and preparation of returns and documents.
We are a 100% EOU. The audit department has now raised an objection regarding payment of basic custom duty by using our Cenvat Credit on sales to domestic tariff area (DTA) in February 2009. Can we take a plea that we have destroyed the records because as per Para 2.1 (vi) of Chapter 6 of the CBEC’s Central Excise Manual, we are required to preserve the records only for a period of five years immediately after the financial year to which such records pertain?
Yes. You can also say that what the EOU pays on DTA sales is excise duty and not customs duty. You may refer to the judgment in the case of Vikram Ispat [2000 (120) ELT 0800 (Tri-LB)], wherein it is held that the nature of the duty levied on goods from a 100% EOU is excise duty and nothing else, whereas for determining the quantum of duty the measure adopted is duty leviable under the Customs Act as held by the Supreme Court in many cases.