REBATE AND DUTY DRAWBACK

[KULDEEP SINGH]

We are claiming the duty drawback for custom duty portion only and exporting the finished goods  after payment of duty. Now department is barring our rebate calim under Rule 18 and instructing us to claim only one benefit either duty drawback of custom portion or rebate claim for finished goods clered under payment of duty.

Please provide the latest case laws to refer to the ddepartment to solve the issue and comment.

[Alok Kumar]

 

Dear Mr. Kuldeep,

As per the existing conditions and limitations as prescribed in the relevant notifications , you can claim the whole amount of duty paid on your final excisable goods cleared for exports.

there are no restrictions placed on you in case you avail the beneifit of duty drawback alongwith the rebate of duty paid on your excisable goods.(i.e.you can avail both simultaneously).

However the restrictions are there in cae you had availed the input stage rebate alongwith the duty drawback.(then your range officer was correct).

The relevant portion of para (extracted from CBEC Manual) is given below to understand your case better:-

 The benefit of input stage rebate cannot be claimed in any of the following situations:

(i) where the finished goods are exported under Claim for Duty Drawback.

(ii) where the finished goods are exported in discharge of export obligations under a Value Advance Licence or a Quantity Based Advance Licence issued before 31-3-95.

(iii) where facility of input stage credit is availed under CENVAT Credit Rules, 2002.

(iv) The market price of the goods is less than the rebate amount.

(v) The amount of rebate admissible is less then Rs. 500/-

Thanks,

Alok Kumar

[YAGAY andSUN]

Department can't restric your claim on Excise Duty provide you had not claimed CENVAT credit on the inputs used in the manufacturing of finished goods.

[Jayant Kuvelkar]

As you have claimed duty drawback of Customs Duty only (presumably thru BRU procedure), there is no scope for revenue to reject your rebate claim.

Precise judgment in this case is 2003 (154) E.L.T. 300 (G.O.I.) -Benny Impex Pvt. Ltd.

AI Summary

Duty drawback and rebate entitlement: exporters may claim both where no input-stage rebate or CENVAT credit has been availed. Exporters who pay duty on finished excisable goods and claim customs duty drawback may also claim rebate on those finished goods so long as they have not claimed input-stage rebate or availed CENVAT credit. Input-stage rebate is barred where exports are under duty drawback, where exports fulfil advance licence obligations issued before 31-3-95, where CENVAT credit is taken, where market price is below the rebate, or where the admissible rebate falls below the prescribed threshold. A cited authority is Benny Impex Pvt. Ltd.