Import of machinery and then used as input for products , the products are exported

[kanika jain]

We have imported a new machinery to India. The machinery will be used in the production of some fruits and vegetables in India and the same will be exported. Please tell that would be given any drawback on the machinery imported. Please specify the relevant Section.

[Snehal Kulkarni]

Dear jain

 

The query is not being clear. R u going to manufacture the Fruit and Vegetable Product from the Imported Machinery.

Under Duty Drawback Scheme relief of Customs and Central Excise Duties suffered on the inputs and not the Capital Goods used in the manufacture of export product is allowed to Exporters.

For the Capital Goods you are not entitled to claim the Duty Drawback..

AI Summary

Duty drawback: relief covers duties on inputs, not on imported capital machinery used in export production. Under the Duty Drawback Scheme, relief is available only for Customs and Central Excise duties on inputs consumed in manufacture of exported goods; duties on capital goods or imported machinery used in production are not eligible for duty drawback.