Drawback Ciruclar No. 27/2001-Cus
24th April, 2001
Government of India
Ministry of Finance
Department of Revenue
Sub: Eligibility of Drawback for exports made under DFRC Scheme – reg.Online GST Certification Course by TaxGuru & MSME- Click here to Join
Kind attention is invited to Circular Nos. 33/2000 – Cus. dated 2.5.2000, 42/2000-Cus. dated 12.5.2000, 62/2000 – Cus. dated 14.7.2000 and 102/2000-Cus. dated 1.12.2000 which have been issued by the Board clarifying the procedure etc. to be followed for export/import under DFRC Scheme which was announced in Exim Policy 2000-2001. In terms of Para 2(vi) of Circular No. 33/2000 read with Circular No. 42/2000, it was clarified that All Industry Rate of Drawback could be availed in respect of inputs specified in SION and which were imported and cleared on payment of CVD under DFRC Scheme provided no cenvat was availed. It was also clarified that in respect of non SION inputs which were procured indigenously, the exporter could avail brand rate of drawback provided no cenvat was availed.
2 Circular No. 102/2000 was issued clarifying that in respect of exports made under DFRC Scheme during the period 1.4.2000 to 31.5.2000, AIR of Drawback equivalent to central excise duty portion could be availed even though General Note No.2(b) of earlier AIR Notification No. 31/99-Cus (NT) dated 31.5.99 had not been amended like later AIR Notification No.41/2000-Cus (NT) dated 1.6.2000. The issue of these circulars became necessary because doubts were raised by field formations about the eligibility of drawback for exports made under DFRC Scheme.
3 It is reiterated that in respect of exports made under DFRC Scheme, AIR of drawback or brand rate of drawback, as the case may be, shall be available as mentioned in Para 1 above. Further AIR of Drawback in respect of export made during the period 1.4.2000 to 31.5.2000 shall also be available as mentioned in para 2 above.
4.This may be brought to the notice of the staff concerned and the trade by issuing suitable standing order and Public Notice respectively.
5.The receipt of this Circular may please be acknowledged.
6 Hindi version will follow.