ELIGIBILITY OF DRAWBACK

[MEHUL ASHAR]

Respected Sir,

As regarding above subject, one of my clients is a merchant exporter who purchases goods from an exciseable unit against CT-1 BOND & exports, then is he eligible 4 customs drawback or not.Please reply.

[Suryanarayana Sathineni]

Dear Friend,

He is eligible to claim DBK since he is the ultimate exporter.

Best Regards

S Suryanarayana

[S G]

Hi,

To claim the Duty Drawback on the goods exported by him, he is require to mention the same while filing the Shipping Bill. He will get the Duty Drawback as per All Industry Rate.

Thanks

Sumit Aggarwal

[Rajagopalan Ranganathan]

Sir,

Question of claiming drawback does not arise since the merchant exporter obtains the excisable goods under CT-1 without payment of duty from the manufacturer.

[MUKUND THAKKAR]

Agree view given by Rajagopalan Ranganathan sir,

[Suryanarayana Sathineni]

Dear Sirs,

With due respects, I differ with the view of Shri. Rangarajan Ii, in view of merchant exporter being the ultimate exporter and the Shipping Documents including Shipping Bill who is ultimately receiving the Foreign exchange.

Further, there is no such restriction that if goods are exported under CT-1 does not qualify for DBK. once goods exported claiming DBK by the ultimate exporter, he would be eligible for DBK in terms of DBK Rules either under category A or B.

Best Regards

Suryanarayana

[MEHUL ASHAR]

Respected Sirs, Thanks 2 U ALL 4 UR REPLIES 2 MY QUERY

AI Summary

Drawback eligibility: merchant exporters buying under CT 1 face conflicting views on entitlement and shipping bill disclosure.
Whether a merchant exporter who purchases excisable goods under a CT 1 bond and exports them may claim duty drawback is contested: one view treats the merchant as the ultimate exporter eligible to claim drawback if declared in the shipping bill and assessed under drawback rules (including All Industry Rate), while an opposing view holds that goods received duty free under CT 1 preclude a drawback claim.