CIRCULAR NO. 41/2005-CUSTOMS
28th October, 2005

F.NO.609/17/2005-DBK

Government of india

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD  OF  EXCISE  & CUSTOMS

 

Sub:-  Eligibility of  brand rate of duty drawback where inputs used in the manufacture of export products are imported availing of DEPB  – Clarification – Regarding.

 

The undersigned is directed to invite your attention on the above mentioned subject and to state that an issue has been raised as to whether additional customs duty paid through debit under DEPB can be allowed as brand rate of duty drawback.

2. The matter  has been  examined  by the Board.   Hitherto,  the additional  customs      duty       paid       in    cash only  was  adjusted  as CENVAT credit or duty drawback while the same paid through debit under DEPB was not allowed as  duty drawback.  In the Foreign Trade Policy 2004-2009, which came into force w.e.f. 1.9.2004, it has been provided under paragraph 4.3.5 that the additional customs duty/excise duty paid in cash or through debit under DEPB shall be adjusted as CENVAT credit or Duty Drawback as per the rules framed by the Department of Revenue.  Taking note of this change, it has been decided that the additional customs duty paid through debit under DEPB shall also be allowed as brand rate of duty drawback.

3. Accordingly, the instructions contained in Circular  No.3/99-Cus dated 3.2.1999 stand modified.

4. A suitable Public Notice and Standing Order may be issued for the guidance of the trade and staff.  Difficulties faced, if any, in implementation of the Circular may be brought to the notice of the Board at an early date.

Receipt of the Circular may kindly be acknowledged.

Yours faithfully,
( Dr. M. SUBRAMANYAM)
DEPUTY SECRETARY(DBK)
TELEFAX:23360581

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