Simultaneous availment of drawback and rebate on the inputs

[Mukund Nyalkalkar]

The situation is the inputs were purchased on payment of duty, the credit of which is not availed and the same were used in or in relation to the manufacture of exported goods without payment of duty under UT-1/bond. Export is made under ARE-2.

The rebate of duty paid on the said inputs is claimed/sanctioned and the drawback on the same also is claimed/sanctioned. In other words, there is double availment of both drawback and rebate on the same inputs, which is not allowed.

Subsequently, when pointed out the mistake, the said drawback is returned to the customs along with appropriate interest.

Now, the question is whether the department can still deny the rebate on the said inputs?

AI Summary

Can Rebate Be Denied After Correcting Dual Claim Error on Exports? Exploring Drawback and Rebate Eligibility. A query was raised regarding whether both drawback and rebate can be simultaneously claimed on inputs used in the manufacture of exported goods. The inputs were purchased with duty paid, but credit was not availed. Exports were made without duty payment under UT-1/bond and ARE-2. Initially, both rebate and drawback were claimed, which is not permissible. Upon realizing the error, the drawback was returned with interest. The question now is whether the rebate can still be denied by the customs department after the correction was made.