MUMBAI, July 25: The revenue department is considering a proposal of allowing merchant-exporters to reverse the modified value added tax (Modvat) credit on goods exported under the advance license scheme.

Announcing at a meeting organised by the Federation of Indian Export Organisations (FIEO), revenue secretary N K Singh said his department has already asked the Member (Customs) at the Central Board of Excise and Customs (CBEC) to work out the modalities that would enable the finance ministry to extend the amnesty to merchant-exporters.

By accepting the proposal in-principal, Singh indicated that the revenue department will forego recoverable import duty on duty free imports that were effected against exports of goods made of excisable/modvatable inputs.

In January this year, the ministry had announced a 28-day long scheme allowing all the manufacturer-exporters to reverse the modvat credit if they intended to retain the import duty benefits.

At today's meeting, Singh set a deadline of August 14 for reversal of modvat on imports under value-based advance licences (Vabal) by merchant-exporters.

The scheme was introduced as an amnesty allowing the exporters to retain benefits of import duty exemption.

According to trade estimates, the exporting community had not responded to the amnesty scheme as was anticipated by the government.

Responding to other demand, Singh said he will issue an order for setting up an office of assistant commissioner exclusively dedicated for export purpose.

Singh shared FIEO's concern about delays faced by the export-import community in faster clearances of their consignments and documents. He said why can not we go in for a compulsory post-shipment inspection of import/export. He hinted that the revenue department was also working in that direction and added that a report of an expert's committee is in advance stage of consideration.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.