Duty drawback in case of export

Vikash Agarwal (Business) (24 Points)

26 May 2016  
We are the Manufacturers of Leather Bags, wallets, etc.in Kolkata. We purchased material locally on which we only pay VAT and manufacture the goods and export and no excise duty as raw leather is a non-excisable product. We are not registered with Central Excise currently so we export as Merchant exporters on which we get duty drawback as a certain percentage on the invoice value. Now we are planning to do domestic sale in case of which we will have to register ourselves with Central Excise. The clarification needed is Will we still be getting duty drawback in case we get ourselves with Central excise and export goods without payment of duty using Letter of Undertaking.