Duty drawback

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Ritesh (Querist)
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05 June 2012 Dear Sir,

We are manufacturer exporter. We purchase raw materials or inputs from the Indian market and take cenvat credit of exciseble goods in our Books of Accounts. From the raw materials, we produce final product and export it.We dispatch the materials under Rebate Claim of Excise duty.

Can we fine shipping bill for export product under the duty drawback (All Industrial Rates)if we availing above practice for the inputs?

Can duty drawback and rebate of excise duty both are available? If yes, then at what rates (i) Cenvat facility availed or (ii) Cenvat facility not availed?
If duty drawback rates are same then at what rates we exports the our final products?

Hitendra Jain

Hitendra Jain (Expert)
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05 June 2012 Rule 3 of Duty Drawback Rules, 1995 provides that where any goods are produced or manufactured from imported materials or excisable materials, or using any taxable service as input services-
The duty / tax chargeable on which has been paid only on some of such materials / input services and not on the rest, or the duty / tax chargeable on which has been paid in part, or
The duty / tax paid has been rebated or refunded in whole or in part or given as credit, under any of the provisions of the Customs Act, 1962 and the rules made thereunder, or the of the Central Excise Act 1944 and the rules made thereunder or the Finance Act 1944 and the rules made thereunder,
“THE DRAWBACK ADMISSIBLE ON THE SAID GOODS SHALL BE REDUCED TAKING INTO ACCOUNT THE LESSER DUTY / TAXES PAID OR THE REBATE OR CREDIT OBTAINED.”
So you can avail both the facility. The drawback will be available for duty tax paid less: (Cenvat Credit + Rebate).

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