Circular No.: ES/346/2020-21 27th October, 2020
To: Members of the Council
Sub: Notification regarding exemption of duties of Central Excise against scrips issued under the RoSL scheme for apparel and made-ups sectors
CBIC has issued Notification No. 7/2020-Central Excise dated 21st October, 2020 regarding exemption of duties of Central Excise against scrips issued under RoSL scheme for apparel and made-ups sectors. This shall be in accordance with paragraph 4.01(d) of FTP 205-20 read with paragraphs 4.97 and 4.98 of HBP 2015-20 from the whole of the duty of excise leviable thereon under the Fourth Schedule to the said Act.
The exemption shall be subject to the following conditions, namely:-
(1) The conditions (1) to (4) specified in paragraph 2 of Notification No. 38/2020-Customs, dated 21st October, 2020 are complied and the said scrip has been registered with the Customs Authority at the port of registration specified on the said scrip.
(2) The holder of the scrip, who may either be the person to whom the scrip was originally issued or a transferee-holder, presents details of the said scrip to the said Customs Authority along with a letter or proforma invoice from the supplier or manufacturer indicating details of its jurisdictional Central Excise Officer and the description, quantity, value of the goods to be cleared and the duties leviable thereon, but for this exemption.
(3) The said Customs Authority, taking into account the debits already made towards imports under Notification No. 38/2020-Customs, dated 21st October, 2020, and this exemption, shall debit the duties leviable, but for this exemption electronically in the customs automated system and send written advice of these actions to the said Officer.
(4) At the time of clearance, the holder of the scrip submits an undertaking addressed to the said Officer that in case of any amount short debited in the said scrip he shall pay on demand an amount equal to the short debit, along with applicable interest.
(5) Based on the said written advice received from the said Customs Authority and the said undertaking, the said Officer endorses the clearance particulars and validates, on the face of the said written advice, the details of the duties leviable, but for this exemption, which were debited by the said Customs Authority, and keeps a record of such clearances.
(6) The said Officer shall give duly attested copies of the said endorsed written advice to the scrip holder and the manufacturer, who retain it in support of the clearance under this notification.
(7) The said holder of the scrip, to whom the goods were cleared, shall be entitled to avail drawback or CENVAT credit of the duties of excise leviable under the Fourth Schedule to the said Act, against the amount debited in the said scrip and validated at the time of clearance.
Members may kindly make a note of the above.