Duty Drawback not admitted when Cenvat Facility has been availed

[Parivesh Goel]

Dear Sir,

We are manufacturing & exporting Brass Strips in Coils under Drawback Schedule Heading 7409-B i.e Drawback when cenvat facility has been availed. We are preparing ARE-1 under N.T. 19/2004 of CE dt. 06/09/04 (as amended), issued under Rule 18 of CE (No.2) Rules, 2001. We are also claiming Cenvat Credit on the finished goods and debiting the duty on the same day. But, our case is being rejected by Customs saying that both benefits can't be availed as stated under 8(e) of N.T. No. 103/08 dt. 29.08.08.

We feel that the same is incorrect. Kindly, clarify.

Regards,

Parivesh Goel

AI Summary

Exporters face duty drawback rejection due to Cenvat use; debate over Notification 103/2008 and Rule 18 interpretation. An exporter manufacturing and exporting brass strips is facing rejection of their duty drawback claim by Customs because they have availed the Cenvat facility. According to Customs, both benefits cannot be availed simultaneously as per Notification 103/2008. Some forum participants argue that exporters can claim duty drawback on customs duty even if Cenvat credit is availed, while others agree with Customs, citing the prohibition under Rule 18 of the Central Excise Rules. The discussion highlights the complexity and lack of clarity in regulations, with participants seeking guidance and relevant judgments to support their claims.