CHAPTER 8

EXPORT UNDER CLAIM FOR REBATE
Part-VI

SPECIAL PROCEDURE FOR EXPORT OF TEA UNDER CLAIM OF REBATE
1. Introduction

1. In rule 18 of the Central Excise (No.2) Rules, 2001 and Notification No. 41/2001-CE(N.T.), dated 26.6.2001, the expression “processing” has been used. It includesblending, packaging or any other operation. One problem which comes into the way isthat the Notification No. 41/2001-CE (N.T.), supra, provides for procurement of goodsdirectly from the factory of manufacture and the open market procurement is allowedonly where goods are in original packed condition and the invoices are issued byregistered dealers. In case of tea, condition relating to open market purchase cannot befulfilled. Accordingly, a special procedure has been framed for export of tea bought inauctions (on which duty is paid at specific rate), under claim of rebate regard arespecified below: -

2.Procedure

2.1 The exports shall be made under the provisions of notification No.41/2001-CE (N.T)dated 26.6.2001. Board’s instructions in Part-I of this Chapter may be followed mutatismutandis.

2.2 For the purpose of export of blended/packaged tea where suchblending/packaging was/is done after purchasing bulk tea from the open market or inauctions, the condition of the aforesaid notification regarding procurement of materials(tea in this case), directly from the factory will be relaxed, provided:

(i) Deputy/Assistant Commissioner of Central Excise is satisfied that the bulktea contained in the blended/packaged tea has actually been exportedand appropriate duty of excise has been paid. For this purpose, the copiesARE.2 together with Bill of Lading and Shipping Bill duly endorsed by theCustoms at the place of export may be verified.

(ii) in case of tea purchased in auctions, the brokers catalogue indicating thedetails of the invoices on which the bulk tea was removed from the factoryfor home consumption on payment of appropriate duty and the broker’scontract relating to purchase of such tea is submitted along with rebateclaim.

(iii) in case tea is purchased other than in auctions, copies of relevant invoicesevidencing payment of duty are submitted along with rebate claim.

2.3 It shall be ensured that exporters do not claim drawback as well as rebate undernotification 41/2001-CE(N.T.), supra., simultaneously.

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