Brand rate drawback allowed for SKD exports when evidence showed the complete product and the circular permitted such claims.

Brand rate of drawback was held admissible for goods exported in SKD condition where the record showed export of the complete product and the governing circular permitted drawback for CKD, SKD or unassembled exports supported by adequate evidence. The authority applied the interpretative rule that an article described in a heading includes the complete article presented unassembled or disassembled. Because the exporter proved that the SKD shipment constituted the complete chiller, rejection of brand rate drawback was not justified and the appellate order allowing the claim was maintained.

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Issues: Whether brand rate of drawback could be fixed for goods exported in SKD condition when an All Industry Rate of drawback was available for the complete product.

Analysis: The exported goods were found to be complete chillers exported in SKD condition. The relevant Board circular stated that goods exported in CKD/SKD or unassembled condition may still qualify for All Industry Rate or brand rate of drawback, provided adequate evidence shows that the components constitute the complete export product. The authority also applied the interpretative rule that an article referred to in a heading includes the complete article presented unassembled or disassembled. Since the circular expressly permitted brand rate drawback in such cases and the factual record showed export of the complete product in SKD condition, denial of brand rate was not justified.

Conclusion: Brand rate of drawback was admissible, and the rejection of the claim was unsustainable.

Final Conclusion: The revision application failed and the appellate order allowing fixation of brand rate of drawback was maintained in favour of the exporter.

Ratio Decidendi: Where the governing circular expressly permits brand rate drawback for CKD, SKD or unassembled exports supported by adequate evidence, drawback cannot be denied merely because the complete product is classifiable under a heading carrying an All Industry Rate.

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