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Duty drawback

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)

20 October 2011

A manufacturer exporter, imports some raw materials under advance licence. Also procure some raw materials locally and avails cenvat credit. Final products are exported without dutyunder LUT. Can he claim duty draw back under all industry rate ? If not can he apply for brand rate ?

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5 Replies

ACCOUNTANT (Student) (559 Points)
Replied 21 October 2011

Dear Sir..,

Imported inputs obtained under Advance License(DEEC scheme) without payment of duty are not eligible for duty drawback.....

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 21 October 2011

Thank you Swetha. Any notification to support ?

ACCOUNTANT (Student) (559 Points)
Replied 22 October 2011

Ur welcome sir....

AS PER FOREIGN TRADE POLICY, 2009-2014, PARA 4.1.4, actually, advance authorization / license / scrip are exempted from payment of basic custom duty, additional custom duty, education cess, antidumping duty, and safe guard duty, if any however import of supplies covered under paragraph 8.2 (h) & (1) will not be exempted from payment of applicable anti dumping and safe guard duty, if any (SUPPLY TO 100% EOU AND UN AGENCY)

So when the duty is not paid under license...there would be no option to claim drawback...

1 Like

Dinesh Eknath Wani (Jr Managar Accounts) (26 Points)
Replied 03 November 2011

Dear Sir,

my two queries are as follows:

1) Our Company is manufacturing Company & they are charging excise while goods moving out of factory premises.(Service tax they are not charging) & while we make payment to some vendors invoices they are charging service tax . can we take credit of service tax we paying on vendor & how . because we are not charging service tax to client.

2) how i can get bifurcation of cenvat credit utilised & outstanding during the year for input & capital goods. (RG23A & RG23C) because while filing monthly ER1 Return there is no bifurcation as such.

Please help me,

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 09 November 2011

Originally posted by : Dinesh Eknath Wani

Dear Sir,

my two queries are as follows:

1) Our Company is manufacturing Company & they are charging excise while goods moving out of factory premises.(Service tax they are not charging) & while we make payment to some vendors invoices they are charging service tax . can we take credit of service tax we paying on vendor & how . because we are not charging service tax to client.

You can take credit and adjust on excise duty payable for clearance of your final product

2) how i can get bifurcation of cenvat credit utilised & outstanding during the year for input & capital goods. (RG23A & RG23C) because while filing monthly ER1 Return there is no bifurcation as such.

You can maintain annexure10 and abstrack for input, capital goods, input service tax separately. In ER-1 there is no separete column given for input and capital goods and separate coloumn is available for S.tax. You can maintain yourself only