Duty Drawback against Exports

[Kaustubh Karandikar]

XYZ exported the goods under LUT without payment of GST. The foreign customer had subsequently refused to pay part payment against the supply. XYZ got this unpaid amount as refund from ‘Export Credit Guarantee Corporation (ECGC)’. The amount not received from the customer XYZ had claimed Duty Drawback against this supply. Will the duty drawback claimed needs to be partly paid back to the extent of the amount not received from the customer?

[Rajagopalan Ranganathan]

Sir,

The reply to your question is yes.