Drawback entitlement clarified: Customs portion admissible where excise input rebate (except diesel) is taken, subject to specified caps. Customs component of AIR drawback is available even if rebate of Central Excise duty on raw materials is taken under Rule 18 or inputs are procured duty-free under Rule 19(2); in such cases Customs portion is admissible as per specified rates and caps, except where input-stage rebate or duty-free procurement applies to diesel, in which event no drawback is admissible. ARE-2 declaration (d) and related instructions have been amended to reflect this position, and officers must deny or recover excise on diesel where declarations are breached.