Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Duty Brawback not allowed as Cenvat Credit is being availed

1018 views 2 replies

Parivesh Goel

Partner

32 Points Posted on 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

Replies (2)

U S Sharma

glidor@gmail.com

21068 Points Posted on 02 March 2011

dealer can not avail both the facilities, duty drawback is the mode of replenishment of taxes suffered by the assessee who are unable to take credit due to procurement of input from open market without excise documents,

once u have availed cenvat credit, then u have option to go for duty drawback by reversing the cenvat credit availed on inputs, or keep the cenvat credit and scrap the duty drawback.