Fixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7 of the Customs and Central Excise Duties Drawback Rules, 1995 - Removal of difficulties – regarding

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.... of Excise & Customs Subject: Fixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7 of the Customs and Central Excise Duties Drawback Rules, 1995 - Removal of difficulties - regarding. Attention is invited to the Customs Circular Nos. 14/2003 dated 6.3.2003, 83/2003 dated 18.9.2003, 89/2003 dated 25.9.2003 and 97/2003 dated 14.11.2003 whereby detail....

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....t of appropriate duty. 3. Doubts have been expressed by some Central Excise field formations that while computing the duty drawback amount, the duty incidence on the original import value or local value, as the case may be, should be deducted from the total drawback amount in terms of Rule 3(2)(d) of the Customs and Central Excise Duties Drawback Rules, 1995. 4. It is clarified that Rule 3(2)(....

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....ginal value of prime goods. 5. It is, therefore, clarified that for determining drawback, first the duty incidence amount should be computed on all the raw materials including the reasonable quantum of waste and, if any such waste is sold then the average amount of duties on such waste so sold shall be deducted. Illustration for computation of drawback where recoverable waste is involved: Fo....

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....able wastage has sale value of Rs. 10.50 per kg. , i.e., total value of wastage per car would be Rs.10.50 x 3.626 = Rs. 38.07. The net incidence of duty on account of GA Coil consumed in the manufacture of one car, which merits to be factored into the brand rate of drawback shall be computed as detailed below:- 1. Quantity of imported 'GA Coil'. 1,48,510 Kgs. 2. C.I.F. value of such Impo....