Section 37B, Order No.60/1/2006-CX dt.13.1.2006 Regarding Non Levy of AED, SAED, NCCD, and Education Cess on Export of Goods under Bond.

16th January, 2006

F.No. 232/16/2004 (Part II)-CX.7
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE & CUSTOMS

Subject : Section 37B order No.60/1/2006-CX dt.13.1.2006 regarding non levy of AED, SAED, NCCD, and Education Cess on export of goods under bond.- Request for uploading on CBEC’s website.

Please find enclosed text of Section 37B Order No. 60/1/2006-CX dt.13.01.2006, issued by the Board, on the above subject. It is requested that the same may be uploaded on the Departmental website under the category of Section 37B Orders issued by the Board on Central Excise matters.

A copy of the said Section 37B order is also enclosed.

Yours faithfully,
(NIKHIL CHANDRA)
Deputy Secretary to the Govt. of India
Ph. No. 011-26161208

F. No.232/16/2004-CX-7
Govt. of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Dated, the 13th January, 2006

Section 37B Order No.60/1/2006-CX

In exercise of the power conferred under section 37B of the Central Excise Act, 1944, the Central Board of Excise and Customs having been satisfied that it is necessary and expedient so to do for the purpose of uniformity with respect to levy of duties of excise on goods exported under bond under rule 13 of the Central Excise Rules, 1944, rule 19 of the Central Excise Rules, 2001 and rule 19 of the Central Excise Rules 2002, issues following orders, instructions and directions:-

1.  As per rule 19 of the Central Excise Rules, 2002, any excisable goods may be exported without payment of duty under bond. Prior to coming into force of the Central Excise Rules, 2002, rule 19 of the Central Excise Rules, 2001 and rule 13 of the Central Excise Rules, 1944, had similar provisions.
   
2.  Apart from the duties chargeable under the Central Excise Act, 1944, certain other duties of excise are chargeable under different Acts of Parliament. The relevant Acts explicitly stipulate that the provisions of the Central Excise Act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of such other duties of excise as they apply in relation to the levy and collection of the duties of excise leviable under that Act or those rules, as the case may be.
   
3.  Accordingly, none of the duties leviable under any such Act of Parliament is required to be paid on export of goods under bond under rule 19 of the Central Excise Rules, 2002 or rule 19 of the Central Excise Rules, 2001 or rule 13 of the Central Excise Rules, 1944.
   
4. A number of instructions and circulars, indicating the position as above have been issued by the Board from time to time in respect of various such duties brought in by various Acts from time to time. Some of such circulars are as follows:-
   • Circular No.278/112/96-CX dated 11.12.1996 (F.No. 209/52/96-CX.6),
   • Circular No. 641/32/2002-CX dated 26.6.2002(F.No. 209/44/96-CX.6)
   • M.F.(D.R.) F.No.345/2/2004-TRU(Pt.) dated 10.8.2004
   • Circular No. 807/4/2005-CX dated 10.2.2005[F.No.209/41/2004-CX.6(Pt. II)],
     
5. Objections over non-payment/ non-collection of some of the said duties, such as Additional Duty of Excise (AED) and Special Additional Excise Duty (SAED) on Motor Spirit (MS) and High Speed Diesel oil (H.S.D.) and Education Cess and National Calamity Contingent Duty (NCCD) on various goods are still being raised and demands are being issued by the field formations in pursuance thereof or otherwise. This is causing hardship to the exporting community and may adversely affect country’s exports. To put an end to the uncertainty for the trade and industry and to bring in clarity, the Board, for the purpose of uniformity with respect to levy of duties of excise, hereby orders that as per rule 19 of the Central Excise Rules, 2002, rule 19 of the Central Excise Rules, 2001 and rule 13 of the Central Excise Rules, 1944, none of the duties chargeable under any Act of Parliament which provides that in relation to levy and collection of such duty, the provisions of the Central Excise Act and the rules made thereunder, shall, as far as may be, apply; was/is payable on export of goods under bond. Such duties, inter alia, include the following:-
   1. the Central Excise Act, 1944 (1 of 1944);
   2. the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
   3. the Additional Duties of Excise (Textile & Textile Articles) Act, 1978 (40 of 1978);
   4. the Additional Duties of Excise as levied vide section 111 of the Finance Act,1998 (21 of 1998) as amended by section 167 of the Finance Act,2003 (32 of 2003);
   5. the Additional Duties of Excise as levied vide section 133 of the Finance Act,1999 (27 of 1999) as amended by section 168 of the Finance Act,2003 (32 of 2003) read with Notification No. 28/2002-C.E. dated 13.5.2002 as amended by Notification No. 62/2002-C.E., dated 31.12.2002; No.16/2003-C.E., dated 1.3.2003 and No.12/2004-C.E., dated 4.2.2004;
   6. the Special Additional Duties of Excise as levied vide section 147 of the Finance Act,2002 (20 of 2002) ;
   7. the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended by section 169 of the Finance Act, 2003 (32 of 2003) which was amended by section 3 of the Finance Act, 2004 (13 of 2004);
   8. the Additional Duties of Excise as levied vide section 157 of the Finance Act,2003 (32 of 2003);
   9. the Education Cess as levied and collected under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004);
   10. the Additional Duties of Excise as levied vide section 85 of the Finance Act,2005 (18 of 2005);
   11. any special excise duty collected under a Finance Act.
6. Accordingly, none of the duties leviable under any such Act of Parliament is required to be paid on export of goods under bond under rule 19 of the Central Excise Rules, 2002, rule 19 of the Central Excise Rules, 2001 and rule 13 of the Central Excise Rules, 1944.
7. Based on the above, pending cases may be disposed off. Past instructions, Circulars and Orders on the issue may be considered as suitably modified.

2.  Suitable Trade Notice may be issued for the information and guidance of the trade.
3. Receipt of this order may please be acknowledged.
4. Hindi version will follow.

(Prashant Kaduskar)
Under Secretary to the Government of India.

30th January, 2006

F.No.232/16/2004 -CX.7
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

Corrigendum

In exercise of the power conferred under section 37B of the Central Excise Act, 1944, the Central Board of Excise & Customs hereby orders that in Section 37B Order No.60/1/2006-CX dated 13 January 2006, (d), (e), (f) and (g) in sub-para (v) of the opening paragraph, be substituted and read as follows: -

4. the Additional Duties of Excise as levied vide section 111 of the Finance (No.2) Act, 1998 (21 of 1998) as amended by section 167 of the Finance Act, 2003 (32 of 2003) and section 119 of Finance Act, 2005 (18 of 2005)
5. the Additional Duties of Excise as levied vide section 133 of Finance Act, 1999 (27 of 1999) as amended by section 168 of Finance Act, 2003 (32 of 2003) and section 120 of Finance Act, 2005 (18 of 2005).
6. The Special Additional Duties of Excise as levied vide section 147 of the Finance Act, 2002 (20 of 2002)read with Notification No. 28/2002-CE dated 13.5.2002 as amended by Notification No. 62/2002-CE dated 31.12.2002, No. 16/2003-CE dated 1.3.2003, No. 12/2004-CE dated 4.2.2004 and No. 40/2004-CE dated 4.8.2004.
7. The National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended by section 169 of the Finance Act, 2003 (32 of 2003) which was amended by section 3 of the Finance Act, 2004 (13 of 2004) and section 123 of Finance Act, 2005 (18 of 2005).

Nikhil Chandra
Deputy Secretary to the Government of India