Sub: Central Excise - Clarification regarding supplies of excisable goods, including fuel, without payment of duty as ship's stores for consumption on board a vessel bound for any foreign port.

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Copy of the Board's Circular No. 605/42/2001.CX (F.No. 209/25/2001-CX.6) dated 29^th November, 2001 on the above subject is communicated for information and necessary action. The Notification No. 42/2001 CE(N.T) dated 26-6-2001 mentioned in the above circular has already been communicated as Trade Notice No. 65/2001 dated 18-7-2001.

The contents of the Trade Notice may please be brought to the notice of all concerned.

(Issued from file C.No. IV/16/2/2001.CX. POL.)

Sd/-

(JANAKI ARUNKUMAR)

ADDITIONAL COMMISSIONER (TECHNICAL)

To

As per mailing list (For both Department and Trade)

I am directed to say that doubts have arisen whether excisable goods [including fuel] exported as ship's stores for consumption on board a vessel bound for any foreign port can be allowed without payment of whole of duty.

2. The board has examined the matter. It is clarified that notification No. 42/2001-CE(N.T) dated 26-6-2001 [effective from 1-7-2001] allows export of 'all excisable goods' without payment of duty. It includes all excisable goods supplied as ship's stores for consumption on board a vessel bound for any foreign port [including fuel for bunker], but does not include mineral oil products falling under Chapter 27 of the Schedule to the Central Excise Tariff Act, 1985 exported as stores for consumption on board of aircraft on foreign run. The expression 'export' used in rule 19 of Central Excise (No.2) Rules,2001 shall have the same meaning as explained under rule 18 of the said Rules. Since full rebate is also permissible on all excisable goods (including the excisable goods supplied as ship's store for consumption on board a vessel bound for any foreign port [including fuel for bunker]), no part payment of duty is required in cases where excisable goods, including fuel, are supplied as ship's stores for consumption on board a vessel bound for any foreign port.

Sd/-

(P.K. SINHA)

OSD (CX.6)