Drawback and Central Excise Rules 2002

[Asked by Guest]

(1)

We are Export Guar Gum Powder (HS Code 13023230) under Central Excise Rule, 2002. We are purchased Packing material under General Bond as per Notification No. 43/2001 CE (N.T.)  dated the  26-6-2001 for Export Purpose. We are Export under ARE2 also.

(2)We are availed Drawback. but custom and Central Excise saying that both benefits can't be availed as stated under N.T. No. Notification No. 68 / 2011 - Customs (N.T.) dated dated the 22^nd September, 2011 and Central Excise Rule, 2002.

Please provide your suggestion and clarification on above matter.

Regards,

Arvind Sundhesha

[Mahir S]

Please recheck and confirm the Central Excise Notification Number referred above.

[Vijay kumar]

Yes, the department is right. Nofn.43/2001 CE(NT)  provides for procurement of inputs without payment of duty for use in export goods. Drawback is a scheme meant to offset incidence of input duty. Thus, when the inputs have not suffered any duty under the said notification, the question of allowing DBK does not arise. You can see that  Nofn.43/2001 CE(NT)clearly mentions that DBK should not be claimed, obviously on account of the said reasoning.

AI Summary

Drawback inapplicable where inputs procured duty-free under Notification No. 43/2001 CE(NT) for export.
Procurement of packing material under Notification No. 43/2001 CE(NT) allows duty-free acquisition for export; because such inputs do not bear central excise duty, the export drawback scheme-which offsets input duty-is inapplicable, and the notification explicitly precludes claiming drawback for inputs obtained duty-free.