TaxTMI 
TaxTMI 
Admissibility of drawback and Market verification for ascertaining the present market value under Drawback Scheme -reg
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....BKGovernment of India Ministry of Finance & Company Affairs Department of Revenue Sub: Admissibility of drawback and Market verification for ascertaining the present market value under Drawback Scheme -reg. Attention is invited to Board's Circular No.26/2001-Cus dated 24.4.2001 which was issued in the wake of various cases of over-valuation under the Drawback scheme reported by the DRI....
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....l rule, FOB value of the exports should be the basis for extending the drawback benefits since FOB value is recognised for export transactions both in the Customs Act, 1962 as well as in the Duty Drawback Schedule where the rates have been expressed as a percentage of the f.o.b. values. The duty drawback rates are computed by taking into account the average duty incidence suffered on the inputs us....
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....ing to the above decision, Hon'ble CEGAT inter alia relied upon similar judgement of Calcutta High Court in the matter of Pankaj V. Seth vide 1997(90) ELT 31. 4. In cases of specific information that the FOB value declared is inflated or there is prima-facie evidence to suggest such over-valuation, the field formations should resort to market verification to ascertain the correct market pr....
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....on merits in terms of section 14 and 113 read with sections 76(1)(b) and 114 of the Customs Act, 1962. 6. It must be ensured that the market verifications are not resorted to in a routine manner and should be undertaken only on the basis of information/intelligence and/or prima-facie evidence which should be first recorded and, thereafter, orders of Additional Commissioner/Joint Commission....