Standard Input Output Norms can support brand rate drawback fixation where exact input consumption proof is unavailable.

Brand rates of drawback may be fixed on the basis of Standard Input Output Norms where exact proof of actual input consumption is not available, provided the application is supported by the required statements, documents and drawback declarations. The record showed that the gross quantity of inputs was worked out through recognised export-import norms, wastage was accounted for, and the method had been applied consistently in earlier years. In the absence of material disproving those findings or showing any statutory breach, the norm-based computation was treated as valid and the Revenue's objection was rejected.

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Issues: Whether the Original Authority was justified in directing fixation of brand rates of drawback on the basis of Standard Input Output Norms despite the Revenue's objection that actual quantity of inputs used had not been proved.

Analysis: The applications were supported by the required statements, documents and enclosures, including the drawback declarations. The dispute centred on whether drawback had to be denied because the exporter did not produce exact proof of actual input consumption. The record showed that the gross quantity of inputs had been worked out on the basis of Standard Input Output Norms, which are recognised norms used in export-import commerce and are accepted for determining input-output ratios where exact consumption cannot be precisely ascertained. The impugned order also recorded that the drawback computation accounted for wastage and that the method adopted was consistent and had been accepted in earlier years. No material was shown to discredit those findings or to establish any statutory violation apart from the use of the recognised norm-based method.

Conclusion: The direction to fix brand rates of drawback on the basis of Standard Input Output Norms was valid, and the Revenue's challenge failed.

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