Notification No. 76/2021-Customs (N.T.) dated 23.09.2021 and Notification No. 77/2021-Customs (N.T.) dated 24.09.2021 was issued by the Government of India, Ministry of Finance (Department of Revenue) which notifies the manner to issue duty credit for goods exported under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) and Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) respectively, which are also in accordance with paragraph 4.01(e) of the Foreign Trade Policy (hereinafter referred to as “FTP”) and in accordance with Government of India, Ministry of Textiles notification No.12015/11/2020-TTP dated the 13th August, 2021 respectively.
The said notifications have laid down the guidelines and rules related to issuance, further utilisation and transfer of Duty Credit Scrip issued under the scheme of Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL). The said Notification comprises of clauses which were ambiguous and imprecise relating to Recovery of amount of Duty Credit and where export proceeds are not realised in case of any default and misutilisation of Duty Credit Scrips.
Consequent to above, a Writ Petition was filed by ASC Consulting Private Limited at Hon’ble High Court of Delhi having Writ Petition reference number W.P.(C) 11178/2022, seeking the remedy to the above hardship and provide a response on the representation which was filed by ASC Consulting Private Limited to the DGFT along with CBIC and Ministry of Finance. It was requested to put some light on the specific clauses and to take out all the ambiguity and misrepresentation. The Hon’ble High Court of Delhi heard us and passed an order dated July 27th 2022 where Hon’ble Justice ordered the Respondents to deliberate on the representation made by the petitioner and thereafter, pass an appropriate speaking order and further disposed of the Writ Petition.
In furtherance to the Order passed by the Hon’ble High Court of Delhi, and by complying to that Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs issued an amendment dated September 14th2022 to the Notification No. 76/2021-Customs (N.T.) dated 23.09.2021 and Notification No. 77/2021-Customs (N.T.) dated 24.09.2021 which is as follows: -
The above amendments clear all the dusts and moreover give clarity to the entire industry regarding the recovery of the amount of duty credit scrip in the event of default by the exporter. Following are the conclusions from the said notification: -
For any further clarifications on the above notification, feel free to contact professionals at ASC Group.
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