Duty draw back under custom

[Krishan Gopal]

We have filed duty draw back claim u/s 74 of custom act for a machine return back after approx 2 years used, as per rules, we can claim duty draw back only 70% therefore we will suffer loss of 30% duty.Please advise that we can claim depreciation on cenvat 2.5% each quarter under rule 5 sub rule (5A) (b) of cenvat credit rule 2004 RegardsK.GOpal

[YAGAY andSUN]

Dear Krishan,

According to Section 76 (2) of the Customs Act, 1962, if the imported goods are used before re-export, the drawback will be allowed at a reduced percentage. If the goods were removed more than of 18 months, from the date of importation, then, NIL Drawback will be available. For details please refer Notification No. 23/2008-Cus dated 01-03-2008. In a result you won't get any Drawback under Section 74 of the Customs Act, 1962. Further, you would have to apply for permission from Board for getting the goods exported which are more than 2 years old otherwise you cannot export of said goods.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

 

 

 

 

AI Summary

Duty Drawback Claim Denied for Machine Re-exported After Two Years Under Section 76(2) of Customs Act. A query was raised regarding the duty drawback claim under Section 74 of the Customs Act for a machine returned after two years of use. The claimant expected a 70% drawback but expressed concern about a 30% loss. The response highlighted that under Section 76(2) of the Customs Act, 1962, goods used before re-export are eligible for a reduced drawback, and no drawback is available if goods are exported after 18 months from importation. It was advised to seek permission from the Board for exporting goods over two years old, as per Notification No. 23/2008-Cus.