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Central Excise matters
Procedure for debiting the original scrips issued under
Served from India Scheme (SFIS) for payment of central excise duty in the case
of domestic procurement of goods
Circular No. 837 / 14
/2006-CX dated 16.11.2006
Kind attention is invited to paragraph 184.108.40.206 of the Foreign
Trade Policy, 2004-09 dealing with imports under Served from India Scheme (SFIS).
In terms of this paragraph, duty credit scrip issued under SFIS can be used for
import of any capital goods including spares, office equipment, professional
equipment, office furniture and consumables that are otherwise freely importable
under ITC(HS) Classification of Export and Import Items. The imports shall
relate to any service sector business of the applicant. In the case of hotels,
golf resorts having catering facility and stand alone restaurants, the duty
credit entitlement may also be used for the import of consumables including food
items and alcoholic beverages. Notification No.92/2004-Cus. dated 10.9.2004
governs imports under SFIS. Vide
notification No.12(RE-2006)/2004-2009 dated
14.6.2006, the Foreign Trade Policy has been amended and a new para 220.127.116.11 has
been inserted to provide that duty free credit scrips earned under the Scheme
shall be permitted to be utilized for payment of excise duty in terms of the
notification issued by Department of Revenue in this behalf for procurement from
domestic sources of such inputs that are permitted for imports under Para
18.104.22.168. Accordingly, notification No.34/2006-CE dated 14.6.2006 has been issued
to permit domestic procurement of goods against scrips issued under SFIS without
payment of central excise duty.
2. References have been received from Trade and DGFT to prescribe a procedure
for debiting the original scrip issued under SFIS for payment of central excise
duty in the case of domestic procurement of goods. The matter has been examined
by the Board and it has been decided that the following procedure shall be
followed for debiting the original scrip by the Central Excise authorities in
i) Whenever a holder of scrip issued under SFIS desires to procure goods
from a domestic supplier/manufacturer, he shall, at the time of clearance of
such goods, produce the original scrip before the jurisdictional Central
Excise officer for debiting of the duties leviable on the goods but for the
exemption contained in notification No.34/2006-CE dated 14.6.2006.
3. The above procedure would obviate the need for issue of TRA by the Customs
authorities at the Port of Registration for debit by Excise, as original scrip
would be produced to the Excise authorities for debit.
ii) The jurisdictional Central Excise officer shall get the genuineness of
the scrip verified from the Customs authorities at the Port of Registration
along with the details of the last debit entry, if any when the scrip is
received first time. The said officer shall, after verifying that the scrip
is valid for import and sufficient balance is available in the scrip to
debit the duties leviable on the goods, debit the original scrip and also
endorse the name and address of the supplier/manufacturer on the back side
of the scrip alongwith details of the excise duty debited. The Central
Excise officer shall also keep a record of such clearances.
iii) The holder of the SFIS scrip shall intimate in writing the details of
debit by Excise to the Customs authorities at the Port of Registration for
entering full details of such debit by Excise in the records of Customs at
the Port of Registration. The scrip holder shall give this intimation to
Customs before clearance of any further consignment either by way of import
or domestic procurement. The jurisdictional Central Excise officer shall
also intimate in writing the details of debit made to the Customs
authorities at the Port of Registration.
iv) It shall be the responsibility of the scrip holder to ensure that he
gives proper intimation of debit by Excise to the Customs authorities at the
Port of Registration before further clearances.
v) The Customs authorities at the port of registration shall permit duty
debit on imports after verifying the details of debit, if any done by
Central Excise authorities.
4. A suitable Public Notice and Standing Order may be issued for the guidance of
the trade and staff. Difficulties faced, if any in implementation of the
Circular may be brought to the notice of the Board at an early date.
Receipt of this Circular may kindly be acknowledged.