Refund of service tax as well as duty drawback

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This query is : Resolved

JITENDRA KUMAR DHINGRA (Querist)

13 March 2013 Hello Everyone!!

Can an Exporter of goods claim refund of Duty drawback as well as Refund of Service tax paid.?
If yes then what should be the provisions for claiming such refund?

Answer with reference of legal provisions are highly appreciable...

RAJIV VIJ

RAJIV VIJ (Expert)

04 September 2013 Dear Jitendra,
Lets understand first the meaning of Duty Drawback : As per the duty drawback rules( known as the custom , central excise duties and service tax drawback rules 1995), drawback means
1. the rebate of duty or tax chargeable on any imported materials used
2. the rebate of duty or tax chargeable on any excisable material used
3. the rebate of duty or tax on taxable services used as input

now first provisio to rule 3(1) of drawback rules (https://www.cbec.gov.in/customs/cs-act/formatted-htmls/cs-rulee.htm ) says that
- if inputs are obtained without payment of customs/excise duty or input services are obtained without payment of service tax, we can not claim drawback.
- if custom duty / excise duty/ service tax is paid on part of inputs/input services then only that part on which duty/service tax is paid will be eligible for drawback.

- if any rebate/ refund is obtained against the amount so paid as custom/excise dutyor service tax , the draw back admisible on the said goods shall be reduced by the amount so availed as rebate refund

the following two link can also be used for the reference
1. https://www.cbec.gov.in/customs/cs-circulars/cs-circulars10/circ35-2k10-cus.htm

2. https://www.cbec.gov.in/customs/cs-circulars/cs-circulars11/circ42-2k11-cus.htm

so if we apply for service tax refund then the amount we get as refund shall be reduced from the duty drawback amount

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