Section 20 in The Sugar Development Fund Rules, 1983
20.
(1)The Central Government may, having regard to the stock of sugar held by the sugar factories, prospects of sugar production and requirement of sugar for consumption in the country, domestic and international prices of sugar and such other factors as may be considered necessary, and after consultation with the Committee, decide from time to time to defray expenditure on internal transport and freight charges to sugar factories on export shipments of domestically manufactured sugar with a view to promoting its export for such period as it deems proper.(2)Subject to the decision of the Central Government under sub-rule (1), the expenditure on internal transport and freight charges on export shipment shall be defrayed from the Fund.(3)Any sugar factory which after obtaining release order issued under clause 5 of the Sugar (Control) Order, 1966, has transported its manufactured sugar for export shipments, and the same has been exported either by the sugar factory or through an exporter shall be eligible to apply for reimbursement of expenditure incurred on the internal transport and freight charges on such export shipments of sugar.Explanation I Where a sugar factory has delivered the export consignment of sugar ex-factory to an exporter and the exporter has, after complying with the legal requirements exported the sugar, it shall be construed to be an export of sugar by that sugar factory through an exporter [and that sugar undertaking in respect of a sugar factory shall be eligible for reimbursement of expenditure incurred on internal transport and freight charges on such export shipments of sugar, provided that the agreement entered into by the sugar undertaking in respect of a sugar factory] [Substituted vide GSR 599 dated 30.07.2012.] with the exporter of sugar stipulates that the expenditure on internal transport and freight charges shall be borne by that sugar factory.[Explanation II. - Where a sugar undertaking in respect of a sugar factory has exported sugar through an exporter, the customs attested Export Promotion copy of the Shipping Bill shall indicate the name of the exporter and of the sugar undertaking in respect of a sugar factory] [Substituted vide GSR 599 dated 30.07.2012.]Explanation III - An exporter means a person who holds an Importer-Exporter Code number allotted to him by the Director General of Foreign Trade of the Central Government.(4)A sugar factory eligible under sub-rule (3) shall prefer a claim for reimbursement of expenditure incurred on the internal transport and freight charges on export shipments of sugar in [Form VI-B] [Substituted vide GSR 787 (E) dated 06.10.03.] within thirty days of the issue of Bank Certificate of Export and Realisation as given in Appendix 22 of the Handbook of Procedure (Vol.I) for the period 1st April, 2002 - 31st March 2007 issued by the Central Government in the Ministry of Commerce and Industry, Department of Commerce.Provided that if a sugar [undertaking in respect of a sugar] [Inserted vide GSR 599 dated 30.07.2012.] factory fails to prefer the claim within the thirty days, such sugar factory may submit the claim in another thirty days but there shall be late cut at the rate of 10% on the entitlement and no claim shall be entertained after expiry of sixty days from the issue of the said Bank Certificate.[Provided further that ill respect of export shipments made on or after the 21st day of June 2002 against Release Orders issued up to 20th day of June 2004, the claims may be preferred within ninety days of the issue of the Bank Certificate and in case the factory fails to prefer the claims within the said period of ninety days, then it may submit the claims in another ninety days. In case the claim is submitted after the first ninety days from the date of issue of the Bank Certificate but within the next ninety days, there shall be deduction of 10% of the amount admissible under this rule and the resulting .amount shall be paid to the sugar factory. No claim shall be entertained after a period of one hundred and eighty days from the date of issue of Bank Certificate mentioned above.] [Inserted vide GSR 739(E) dated 9.11.04.](5)The claim referred to in sub-rule (4) shall be accompanied by the following documents failing which the claim, in the absence of valid reason, shall to be disallowed:(a)a certified copy of the release order issued under clause 5 of the Sugar (Control) Order, 1966;(b)a certified copy of the contract entered into by the sugar [undertaking in respect of a sugar] [Inserted vide GSR 599 dated 30.07.2012.] factory with the exporter where the sugar factory itself is not the exporter;(c)a certified copy of the Application made for Removal of Excisable Goods (FORM A.R.E. 1) certifying that the consignment of sugar has been shipped of;(d)a certified copy of customs attested Export Promotion (EP) copy of the Shipping Bill;(e)a certified copy of the Bank Certificate of Export and Realization as given in Appendix 22 of the Handbook of Procedure (Vol.I) for the period 1st April, 2002 - 31st March 2007 issued by the Central Government in the Ministry of Commerce and Industry, Department of Commerce.(f)a certified copy of the distance Certificate issued under in sub-rule (8) regarding the distance between the sugar factory and the loading railhead;(g)a certified copy of the railway freight receipt from loading railhead to railhead nearest to the port;(h)a certified copy of the certificate of railway freight chargeable as specified in sub-rule (9);(i)a certified copy of the certificate issued by the port authorities certifying the distance between the railway station nearest to the port and loading point at the port as specified in sub-rule (10);(j)a certified copy of the receipt and challan of the road transporter indicating the vehicle number and quantity transported where the sugar [undertaking in respect of a sugar] [Inserted vide GSR 599 dated 30.07.2012.] factory has transported the export consignment of sugar by road.(6)A sugar [undertaking in respect of a sugar] [Inserted vide GSR 599 dated 30.07.2012.] factory shall be free to transport export consignment of sugar either by rail or road or both but the reimbursement of expenditure shall be restricted in the manner prescribed in sub-rule (7),(7)The reimbursement of expenditure on internal transport and freight shall be restricted as under:(i)for the distance from sugar factory to the nearest loading railhead, the transportation rate as specified in the Sugar (price Determination for Production) Order of the relevant sugar season;(ii)for the distance from loading railhead nearest to the sugar factory to the railhead nearest 10 the port, the railway freight by the shortest route;(iii)for the distance from railhead nearest to the port to the point of loading at port, the transportation rate as specified in the Sugar (Price Determination for Production) Order of the relevant sugar season;(iv)[ where a sugar undertaking in respect of a sugar factory has preferred to transport export consignments of sugar by road instead of railway, the claim for reimbursement of expenditure on internal transport and freight charges shall be restricted to the total of transportation charges and railway freight charges as specified in clauses (i) to (iii) or the actual transportation charges by road incurred by the sugar undertaking in respect of a sugar factory, whichever is less.] [Substituted vide GSR 599 dated 30.07.2012.]Explanation - The restriction imposed in the Sugar (Price Determination for Production) Order of any relevant sugar season, as regards the transportation charges, shall not apply for the purpose of this sub-rule and the sugar [undertaking in respect of a sugar] [Inserted vide GSR 599 dated 30.07.2012.] factory shall get reimbursement for the full distance between the sugar factory and the nearest railhead.(7A)[ For the purposes of reimbursement of expenditure incurred on internal transport and freight charges on export shipments of sugar, a sugar factory may be allowed to claim and may be paid the following(i)An amount calculated at the rate of three hundred and fifty rupees per tonne, in respect of the quantity of sugar exported by it by sea from an Indian Port, on or after the 14th day of February 2003; and(ii)Handling and marketing charges at the rate of five hundred rupees per tonne on the quantity of sugar exported by it on or after the 3rd day of October, 2003.][Explanation - For the purposes of this Sub-rule, "reimbursement" means the amount payable in respect of clauses (i) and (ii) irrespective of the actual expenditure incurred by the sugar factory or anyone else on behalf of such sugar factories in actual expert shipment of sugar.] [Inserted vide GSR 149(E) dated 2.3.05.](8)A sugar [undertaking in respect of a sugar] [Substituted vide GSR 599 dated 30.07.2012.] factory claiming reimbursement of expenditure in respect of sub-rule 7(i) above shall produce a distance certificate from the District Collector or any officer authorised by him in this behalf of the District where the sugar factory is situated, as a proof of distance between the sugar factory and the nearest loading railhead.(9)A sugar [undertaking in respect of a sugar] [Substituted vide GSR 599 dated 30.07.2012.] factory claiming reimbursement of expenditure in respect of sub-rule 7(ii) above shall produce a certificate from the concerned Railway authorities specifying the railway freight chargeable from the railhead nearest to the sugar factory to the railhead nearest to the port by the shortest route for the quantity of sugar transported.(10)A sugar [undertaking in respect of a sugar] [Substituted vide GSR 599 dated 30.07.2012.] factory claiming reimbursement of expenditure in respect of 7(iii) above shall produce a distance certificate from the concerned Port authorities specifying the distance between railhead nearest to the port and the point of loading at the port.(11)[ The reimbursement claim of the sugar undertaking in respect of a sugar factory shall be settled within forty-five days of the receipt of the complete documents from the sugar undertaking in respect of that sugar factory unless the Central Government has communicated in writing to the sugar undertaking in respect of that sugar factory to furnish any requisite document within the said period.] [Substituted vide GSR 599 dated 30.07.2012.](12)In a case where it is found at any time that a sugar undertaking has wilfully suppressed the facts or concealed some material information or furnished false information or forged documents, then-(a)the reimbursement claim of that sugar undertaking shall be rejected;(b)its future claim shall not be entertained, and(c)if the claim has already been settled, the sugar undertaking shall be liable to refund the amount along with such interest as the Committee may decide.
