Dear Sir,
Can we take benefit both secheme duty draw back and depb. we have excess credit our excise duty rate 4% and 25% Export , input credit 8%. we claim excise duty under rebate claim of duty. Still we have more credit. if we can take duty draw back then it can be reduce because input rate of duty 8% and 4% additional duty. Please tell me am i right or wrong. Can it is possible or any other alternative. Thanks
Both duty drawback of custom portion and DEPB is not permissible.You can take refund of excess cenvat under Rule 5.
This is one problem which is affecting many exporters. One solution can be to shift some product manufacturing of group company in the exporting unit, so that excess credit cant be utilised on payment of duty on that product. Another solution can be to take job work from outside and clearance after job work on payment of duty.
Dear Sir,
Custom portion means Basic duty or cvd ?
In the drawback schedule you will find two drawback rates- when cenvat is taken and when cenvat is not taken. When cenvat is not taken, the rate is a combined rate of custom & excise duty. When cenvat is taken, rate is for custom portion only.
Dear Sir,
We can utilised DEPB to pay cvd & cess. We can take cenvat credit utilised Depb then why we cant use both Depb & Duty Draw back. Can it is possible that we are not take cenvat on imported goods and take benefit Duty draw back.
Dear Sir,
Can a manufacturer take credit of additional duty although final products which the manufacturer producing not liable for additional excise duty. pls reply as soon as possible sir
Yes you can take cenvat credit 4% addition duty which is related to imported material.
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