Duty Drawback-All Industry Rates

[Sanjay Sharma]

Dear Experts,

This query is regarding Duty Drawback of All Industry Rates-

Exported goods has not suffered any incidence of Customs duty on the inputs and procured indigenously wholly, in other words we can say that no imported inputs involved in the making of export goods,

Inputs procured indigenously and whatever duty paid on the same inputs taken the CENVAT credit for the duty paid on that,

In this situation can we avail the duty drawback Customs duty portion of All Industry rates of DBK or not,?

Pls. clarify.

[YAGAY andSUN]

Dear Sanjay,

Duty Draw Back under All Industry Rates has two aspects, namely:

1. DBK AIR with availment of CENVAT credit
2. DBK AIR without availment of CENVAT credit

You can avail the DBK AIR with availment of CENVAT credit which is either equivalent to DBK AIR without availment of CENVAT credit or may be lesser than of it.

Please check under which category and under which Tariff Heading your finished goods duly falls and then opt the appropriate clause A or B in your shipping bill and DBK AIR Tariff.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Duty drawback all-industry rates can be claimed with CENVAT credit where applicable; select the correct tariff clause. DBK AIR has two modalities: DBK AIR with availment of CENVAT credit and DBK AIR without availment. An exporter who has availed CENVAT credit may claim DBK AIR under the with-credit modality, whose rate will be equal to or lower than the without-credit rate; the exporter must identify the correct tariff heading and choose the appropriate clause A or B in the shipping bill and DBK AIR tariff.