2007 (6) TMI 484

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....tantial question of law is proposed for admission of this appeal. "Whether on facts and circumstances of the case the Income Tax Appellate Tribunal was right in allowing the deduction u/s 80IA of the Income Tax Act, 1961 by including the amount of duty draw back?" 3. The Tribunal has considered the issue raised in the question as under : "5. We have considered the rival contentions. This ....

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....ct of the duty drawback scheme is to reimburse exporters for tariffs paid on the imported raw materials and intermediates and Central Excuse Duties paid on domestically produced inputs which enter into export production. Customs duties and excise duties on inputs raise the cost of production in industries and thereby affect the competitiveness of exports. Therefore, exporters need to be assisted f....

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.... cost of manufacturing the goods. The very scheme of duty drawback is framed and embodied in the statutory provisions in order to relieve the goods to be exported of the burden of customs duties and excise duties. The objection of the duty drawback is to reimburse custom duties and excise duties paid by the assessee. As customs duties and excise duties are admittedly an integral part of the cost o....