We have to return Duty Drawback and MEIS partially.

[harkirat singh]

Dear Sir,

We have exported a consignment. Because of some quality issues buyer has raised a Debit note of 25 % of invoice value.

We have to refund approx. 24000 to customs and approx. 37000 to DGFT

And we have to return Partial Duty Drawback + interest @18 % to customs

Partial MEIS amount to DGFT on along with 18 % interest.

Can we return MEIS & Duty Drawback Amount + 18 % interest to DGFT by debiting MEIS.

Kindly advice.

Regards

Harkirat Singh

[email protected]

[YAGAY and SUN]

Scrip can be used for payment of

(i) Customs Duties for import of inputs or goods, except items listed in Appendix 3A;

(ii) Payment of excise duties on domestic procurement of inputs or goods, including capital goods and

(iii)Payment of service tax on procurement of services

(iv) Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.

However, you cannot reverse or pay any amount for MEIS as MEIS is granted for the foreign remittance received against the FOB value or actual receipt value which is lower.

AI Summary

MEIS reversal prohibited: scrips may pay specified customs, excise and service taxes, but MEIS amounts cannot be returned.
Scrips under the incentive scheme may be used to pay certain taxes and duties-customs duties on imports of inputs/goods (except listed exclusions), excise on domestic procurement including capital goods, service tax on procured services, and specified customs duties and fees-however MEIS cannot be reversed or used to pay back amounts because MEIS is granted on the basis of foreign remittance received against FOB or actual receipt value.