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

Double benefit prohibition: rebate questioned after both drawback and rebate were claimed on identical exported inputs. Inputs purchased on which duty was paid (no credit availed) were used under bond for exported goods and export made under ARE-2; both rebate on inputs and drawback were claimed and sanctioned on the same inputs, the drawback was later returned with interest, and the central question is whether the rebate can still be denied given the prohibition on double availment of duty relief.