cenvat credit on input stage, Drawback and rebate of duty on finished product

[Hemant Kumar]

We are exporting the goods. As per all industry rate, drawback rate is 3.20% whether cenvat facility has been availed or not. We are availing cenvat credit facility on raw material and Drawback @ 3.20%. In this case, we are exporting against Letter of undertaking.
Now, we want to avail cenvat credit facility on raw material, drawback (when cenvat credit has been availed) and rebate of duty on finished product.
Can we avail cenvat credit on input stage, Drawback (when cenvat credit availed) and rebate of duty on finished product? If we can then please arrange notification or circular.

Your kind guidance in this regard shall be highly appreciated.

regards

Hemant Sharma

[Guest]

Yes, you can do so. you have to pay the excise duty on exported goods & rebate can be claimed later on when export is completed

Drawback can also be claimed if the product is covered in all industry rate drawback schedule.

[GANTI SARMA]

Yes, you can get both benefits of rebate and drawback. Draw back is incentive by Govt. of India to encourage the exports and rebate claim is whatever duty we have paid on raw materials that we are taking back. Hence, you can avail both benefits without any doubts.

 

AI Summary

Cenvat credit, drawback and rebate can be availed together for exports subject to paying duty and applicability of all industry drawback Exporters availing Cenvat credit on inputs may also claim drawback at the all industry rate and a rebate of duty on the finished product: excise duty on exported goods must be paid/accounted for with rebate claimable after export completion, and drawback is claimable only if the product is covered in the all industry drawback schedule.