CIR NO.687/03/2003-CX, DT. 03/01/2003

Payment of rebate amount of the duty paid from Cenvat credit account in cash-reg.

I am directed to draw your attention to Board’s circular No. 21/89-CX6 dated 11.5.89 issued from F.No. 210/21/87-CX6, circular No. 153/64/95-CX dated 12.10.95 issued from F.No.209/47/95-CX6 and circular No. 262/96/96-CX dated 6.11.96 issued from F.No.209/36/96-CX6 wherein it has been, inter alia, clarified that rebate could be sanctioned in cash in respect of the duty payment made through credit accounts of Modvat scheme on inputs or capital goods or deemed credit account. Subsequently, Board has been receiving representations from trade to say that the rebate is not being granted in cash.

2. The matter has been examined by the Board. It is the view that there is no discretion with the sanctioning authority to give the refund of the duty paid on goods exported through credit accounts. It is therefore clarified that the duty paid through the actual credit or deemed credit account on the goods exported must be refunded in cash.

3. Field formations may please be informed suitably.

4. Receipt of the same may be acknowledged.

5. Hindi version will follow.

Yours faithfully,

(Vijay Mohan Jain )
Under Secretary to the Govt. of India

F.No. 267 /57/2002-CX-8

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