Drawback claim

[Himansu Sekhar]

Sir,

(1) an assessee procures indegenous goods and claims input stage credit

(2) and export the goods under payment of duties

(3) Claims rebate for the said duties

(4) Also Claims Drawback at the AIR rate.

(5) AIR rate for both Cenvat and non cenvat is same

Is there any irregularity. Kindly clarify

AI Summary

Drawback eligibility: generally unavailable where CENVAT credit is taken, while excise rebate remains a separate claim.
Duty drawback is intended to compensate customs duties on imported inputs used in exports and is generally not admissible where CENVAT credit has been taken on those inputs; rebate of excise on exported goods is a separate remedy. Board clarifications and AIR methodology have led to debate that input origin may be immaterial for AIR calculation and that drawback has been claimed in practice on exempted or directly imported goods, though admissibility and valuation can vary.