duty drawback New 2011

[SNEHAL SHAH]

Sir,

We are Manufacturing of Textile product  , there is some confusion about duty drawback :

We are export material under Rebate claim . We want to go for Cenvate not availed sheme opton for duty drawback .

Now quetion is that , we are export only 3 Container per month & import lots of material for Mfg of final product .

If we go for Cenvat not awailed scheme , we can take cenvat credit full ( all input material ) after that we can proportionate debit this duty which is exported , is it right or not please suggest .

Can we can claim rebate claim also simulteneusly ?

Pl.Suggest .

SACHIN

[YAGAY andSUN]

You can either go for All industry rate or brand rate fixation if you don't avail the CENVAT credit on the Inputs.  If you avail CENVAT credit then only BCD portion would be available as duty drawback.

AI Summary

Duty drawback treatment when CENVAT credit is availed limits drawback to BCD portion and affects rebate options. If an exporter avails CENVAT credit, input duties can be credited under CENVAT but duty drawback entitlement is limited to the BCD portion; if CENVAT is not availed, the exporter may seek duty drawback under an all industry rate or brand rate fixation to obtain broader drawback benefits.