Rule 6. Cases where amount or rate of drawback has not been ddetermined

Official text

Rule 6. Cases where amount or rate of drawback has not been determined. —

(1) (a) Where no amount or rate of drawback has been determined in respect of any goods, any manufacturer or exporter of such goods may, within three months from the date relevant for the applicability of the amount or rate of drawback in terms of sub-rule (3) of rule (5), apply in writing to the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner or Commissioner of Customs and Central Excise, having jurisdiction over the manufacturing unit, of the manufacturer exporter or, of the supporting manufacturer, as the case may be, for determination of the amount or rate of drawback thereof stating all the relevant facts including the proportion in which the materials or components or inputs services are used in the production or manufacture of goods and the duties paid on such materials or components or the tax paid on input services:

Provided that (i) The Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise, or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise, as the case may be, may extend the aforesaid period of three months by the period of three months and that the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or Principal Commissioner or Commissioner of Custom and Central Excise, as the case may be, may further extend the period by a period of six months;

(ii) The Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise, or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise or Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or Principal Commissioner of Commissioner of Custom and Central Excise, as the case may be, may, on an application and after making such enquiry as he thinks fit, grant extension or refuse to grant extension after recording in writing the reasons for such refusal;

(iii) An application fee equivalent to 1% of the FOB value of exports or Rs. 1000/- whichever is less, shall be payable for applying for grant of extension by the Assistant Commissioner of Central Excise or Assistant Commissioner of Custom and Central Excise or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise, as the case may be and an application fee of 2% of the FOB value or Rs. 2000/ whichever is less, shall be payable for applying for grant of extension by the Principal commissioner of Central Excise or Commissioner of Central Excise, as the case may be or Principal Commissioner of Commissioner of Customs and Central Excise, as the case may be;

(b) On receipt of an application under clause (a) the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner of Commissioner of Customs and Central Excise, as the case may be, shall, after making or causing to be made such inquiry as it deems fit, determine the amount or rate of drawback in respect of such goods.

(2)(a) Where a manufacturer or an exporter desires that he may be granted drawback provisionally, he may, while making an application under clause (a) of sub-rule (1) apply in writing to the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner or Commissioner of Customs and Central Excise, as the case may be, that a provisional amount be granted to him towards drawback on the export of such goods pending determination of the amount or rate of drawback under clause (b) of that sub-rule.

(b) The Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner of Commissioner of Customs and Central Excise, as the case may be, may, after considering the application, allow provisionally payment of an amount not exceeding the amount claimed by the manufacturer or exporter in respect of such export:

Provided that the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner or Commissioner of Customs and Central Excise, as the case may be, may, for the purpose of allowing provisional payment of drawback in respect of such export, require the manufacturer or exporter to enter into a general bond for such amount, and subject to such conditions, as he may direct; or to enter into a bond for an amount not exceeding the full amount claimed by such manufacturer or exporter as drawback in respect of a particular consignment and binding himself,-

(i) to refund the amount so allowed provisionally, if for any reason, it is found the duty drawback was not admissible; or

(ii) to refund the excess, if any, paid to such manufacturer or exporter provisionally if it is found that a lower amount was payable as duty drawback:

Provided further that when the amount or rate of drawback payable on such goods is finally determined, the amount provisionally paid to such manufacturer or exporter shall be adjusted against the drawback finally payable and if the amount so adjusted is in excess or falls short of the drawback finally payable, such manufacturer or exporter shall repay to the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner or Commissioner of Customs and Central Excise, as the case may be, the excess or be entitled to the deficiency, as the case may be;

(c) The bond referred to in clause (b) may be with such surety or security as the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner or Commissioner of Customs & Central Excise, as the case may be, may direct.

(3) Where the Central Government considers it necessary so to do, it may-

(a) revoke the rate of drawback or amount of drawback, determined under clause (b) of sub-rule (1) by the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner or Commissioner of Customs and Central Excise as the case may be; or

(b) direct the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be or the Principal Commissioner or Commissioner of Customs and Central Excise as the case may be, to withdraw the rate of drawback or amount of drawback determined.

(4)[Omitted]