Rebate of duty paid - department reject claim

[Guest]

Goods exported by debiting duty under Rule 18 ie.to claim rebate of duty paid on goods exported. Admissible drawback of duties involved in raw materials also claimed by filing drawback shipping bill. Dept.intends to reject rebate claim saying that both cannot be claimed.We feel it is not correct.

[sudhir V S]

Refund of CENVAT is governed by CCR 2004. Proviso to Rule 5 restricts refund of CENVAT if duty draw back is claimed either under rule 18/19. Hence both will not be available

AI Summary

Exporter Challenges Rejection of Duty Rebate Claim; Department Cites CENVAT Credit Rules, Proviso to Rule 5 A party exported goods by debiting duty under Rule 18 to claim a rebate on the duty paid and also filed for a drawback on duties involved in raw materials. The department intends to reject the rebate claim, arguing that both benefits cannot be claimed simultaneously. The party disputes this rejection. A respondent clarified that, according to the CENVAT Credit Rules 2004, specifically the proviso to Rule 5, a refund of CENVAT is restricted if a duty drawback is claimed under Rule 18 or 19, indicating that both benefits are not permissible.