Policy Circular No.13(RE-01)/ 2001-2002, Dt. 16/10/2001.

Refund of Excise Duty paid on tea procured by EOU/ EPZ units in the period 01.03.1999 to 30.11.1999

Sub:

Refund of Excise Duty paid on tea procured by EOU/ EPZ units in the period 01.03.1999 to 30.11.1999

The Union Budget for the year 1999-2000 which came into effect on 01.03.1999 had imposed an excise duty of Rs 2 per kg on bulk tea. Subsequently the Drawback Directorate in the Department of Revenue fixed an All Industry Drawback Rate of Rs 2 per kg on 01.06.1999 for the same commodity. One of the purposes for fixation of this rate was to refund the excise duty paid at the stage of auction by the EOU/ EPZ units who would subsequently export the same after processing.

On receipt of a request from the EOU/ EOZ units for refund of the excise duty paid by them on procurement of bulk tea from the auction centres, the office of the DGFT issued a Notification No 36 dated 01.12.1999. The said Notification permitted the Development Commissioner of the respective zone to re-imburse the Central Excise Duty paid on bulk tea procured from the licenced auction centres by the EOU/ EPZ units . Since notifications are prospective in nature unless otherwise specified, the said facility of reimbursement of Central Excise Duty was available only from 01.12.1999 onwards.

In this regard, representations have been received from the industry on the need for reimbursement of the Central Excise Duty paid on bulk tea procured from the licence auction centres by the EOU/ EPZ units for the period 01.03.1999 t0 30.11.1999 i.e from the date of levy of this Central Excise Duty in the Union Budget to the date of issue of Notification by the office of the DGFT for the reimbursement of this Central Excise Duty paid on bulk tea procured from the licence auction centres by the EOU/ EPZ units. The matter was deliberated upon in the Policy Review Committee on 30.07.2001 whereby the Committee was agreeable in principle to the proposal for retrospective effect to Notification No.36 dated 01.12.1999.

Hence it is hereby decided that Central Excise Duty paid on bulk tea procured from the licence auction centres by the EOU/ EPZ units for the period 01.03.1999 to 30.11.1999 would be re-imbursed by the Development Commissioner on submission of proof of having paid the excise duty.

This issues with the approval of the Commerce and Industry Minister.

Bipin Menon
Dy Director General of Foreign Trade

(File No: 01/94/180/52/AM02/ PC IV)

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