Duty Drawback not admitted as Cenvat Credit has been availed
This query is : Resolved
01 March 2011
Dear Sir,
We are manufacturing & exporting Brass Strips in Coils under Drawback Schedule Heading 7409-B i.e Drawback when cenvat facility has been availed. We are preparing ARE-1 under N.T. 19/2004 of CE dt. 06/09/04 (as amended), issued under Rule 18 of CE (No.2) Rules, 2001. We are also claiming Cenvat Credit on the finished goods and debiting the duty on the same day. But, our case is being rejected by Customs saying that both benefits can't be availed as stated under 8(e) of N.T. No. 103/08 dt. 29.08.08.
We feel that the same is incorrect. Kindly, clarify.
Regards,
Parivesh Goel
We are manufacturing & exporting Brass Strips in Coils under Drawback Schedule Heading 7409-B i.e Drawback when cenvat facility has been availed. We are preparing ARE-1 under N.T. 19/2004 of CE dt. 06/09/04 (as amended), issued under Rule 18 of CE (No.2) Rules, 2001. We are also claiming Cenvat Credit on the finished goods and debiting the duty on the same day. But, our case is being rejected by Customs saying that both benefits can't be availed as stated under 8(e) of N.T. No. 103/08 dt. 29.08.08.
We feel that the same is incorrect. Kindly, clarify.
Regards,
Parivesh Goel
02 March 2011
ARE-1 procedure could save debiting of Duty if exported under Bond or LUT;
You seem to be aviling CENVAT credit on inputs for manufacturing exportable finished goods (you could not be availing CENVAT credit on finished goods);
If you are not exporting under Bond / LUT, you stand to get Drawback of Duty debited on finished goods !
You seem to be aviling CENVAT credit on inputs for manufacturing exportable finished goods (you could not be availing CENVAT credit on finished goods);
If you are not exporting under Bond / LUT, you stand to get Drawback of Duty debited on finished goods !
03 March 2011
In case of drawback, you can not avail the benefit of CENVAT credit. If you have availed CENVAT credit, please reverse the same.
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