Custom duty drawback & rebate under rule- 18

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Ankur Garg

Article

33 Points Posted on 16 October 2013

Please suggest me whether the Drawback of Custom portion under all industry drawback rates on PURCAHSE OF IMPORTED GOODS FROM DOMESTIC BUYER can be claimed if firm is exporting dutiable goods under Rule- 18 of CER i.e under rebate. Whether the cenvat credit of inputs and capitals goods is also available or that is not available in case of drawback?????

Please explain along with the supporting case laws or sections?????

Replies (9)

RAMESH KUMAR VERMA

CS PURSUING

28836 Points Posted on 16 October 2013

No....noted only general unit who direct import from SEZ,100%EOU,EHTP AND STP exportert can avail the Deemed export drawback.

Deemed Exports are supplies that do not leave country, are paid in Indian Rupees, but are still deemed to have been exported, because they compete with the duty free imports. They are eligible for almost all benefits of physical exports but not for DEPB/FMS/FPS/SFIS and Sales Tax. The benefits of Advance Authorization / DFIA / EPCG (Export Promotion Capital Goods) and Drawback are available on inputs, while Exemption from or refund of Excise Duty is available on output.

Supplies to following are considered as deemed exports and they get the benefits as follows:

EOU's, BTP, EHTP, STP

Supplies to EOU, BTP, EHTP, STP from DTA (Domestic Tariff Area) are considered deemed exports. This gives rise to certain benefits to the suppliers to the EOUs etc. They can get the Advance Authorization for their imports for the purpose of supplies to EOUs. They can also get the drawbacks for their supplies. The benefits can be taken by the suppliers or the EOU themselves.

Ankur Garg

Article

33 Points Posted on 16 October 2013

We are not directly importing the inputs but we are purchasing the same. And we are directly exporting the final dutiable product. So there is no case of deemed export. So my questions is whether the custom portion drawback can be claimed under ALL INDUSTRY DRWABACK RATES along with the rebate when we are availing CENVAT CREDIT.