According to official sources, the facility of self-declaration for non-availment of Cenvat will be extended to pending cases also. The decision of the revenue department is expected to help Central Board of Excise and Customs (CBEC) in disposing of past cases pertaining to duty drawback claims expeditiously.
Talking to FE, president of the Federation of Indian Export Organisation (FIEO) M Rafeeque Ahmed said, any decision which places more trust on exporters is welcome. He said expeditious disbursal of drawback claims will help the exporters. They will have to borrow less to that extent, he added.
The CBEC scheme has allowed manufacturer-exporters to give a self-declaration that, they or the supporting manufacturers are not registered with central excise and that they do not avail/have not availed Cenvat facility.
As per the instructions issued by the revenue department, the manufacturer-exporters who are not registered with the central excise or such merchant exporters whose supporting manufacturers are not registered with the central excise, shall not be required to furnish any certificate as to the non-availment of Cenvat facility from the jurisdictional central excise authorities while claiming duty drawback.
The scheme was framed on the basis of the Kelkar committee report on indirect taxes which was presented to finance minister Jaswant Singh in December 2002. The committee underlined the need for relaxing norms for availing duty drawback claims by manufacturer-exporters. It had recommended that, the customs should accept self-declaration from the merchant exporters that their supporting manufacturers are not registered with central excise and they do not avail Cenvat benefit. Similar self-declaration should be accepted from manufacturer-exporters. Such claims, the committee suggested, should be subjected to post-disbursal verification on basis of intelligence and risk assessment techniques.
While relaxing the norms for availment of duty drawback claims, the revenue department has also spelled out the steps to rule out the possibility of misdeclaration by the exporters. The department has decided to selectively pick up declarations given by the exporters for verification by the jurisdictional central excise field formations.