CBIC amends Customs regulations pertaining to RoSCTL and RoDTEP schemes

This Tax Alert summarizes recent Notifications ^[1] issued by Central Board of Indirect Taxes and Customs (CBIC) amending regulations relating to Rebate of State and Central Taxes and Levies (RoSCTL) and Remission of Duties and Taxes on Exported Products (RoDTEP) schemes under Customs.

The key changes are as follows:

• The validity period of scrip under Duty Credit Regulations ^[2] is increased from one year to two years. The validity period shall be computed from the date of creation and will not change on scrip transfer.
  
• Earlier, RoSCTL and RoDTEP schemes ^[3] had provisions for recovery of excess duty credit from exporter as well as transferee on account of non-realization of export proceeds or any other reason.  The amendment in the schemes limits such recovery only from the exporter. 

Comments:

It is relevant to note that as per Customs Act 1962, recovery of excess duty credit can also be done from the transferee in case of collusion, wilful misstatement or suppression of facts. One may need to evaluate the amendment in line with the provisions of the Customs Act.  

^[1] Notification Nos. 75 and 76/2022-Customs (N.T.) dated 14 September 2022 and Notification No. 79 /2022-Customs (N.T.) dated 15 September 2022
^[2] Electronic Duty Credit Regulations, 2021 notified vide Notification No. 75/2021 dated 23 September 2021
^[3] Notification No. 76/2021 – Customs (N.T.)  dated 23 September 2021 and Notification No. 77/2021 – Customs (N.T.) dated 24 September 2021