DBK Circular No. 10/2001-Cus
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Ministry of Finance
Department of Revenue
Sub: All Industry Rates of Drawback in respect of Ready-made Garments falling under SS No.62.02 of the Drawback Table regarding.
References have been received from the field formations seeking clarifications whether the drawback caps of Rs.65.00 per piece mentioned against SS No.62.01 and of Rs.39.00 per piece indicated in SS No.62.02 are applicable to a single piece of garment or they are also applicable to sets/ensembles of garments. Such sets/ensembles being Ghagra-Choli. Lehnga-Choli, Suits (coat-pant), pant and shirt, ladies suits (salwar-kameez),etc.
2. The issue has been examined. The applicability of drawback caps should be decided taking into account the normal commercial practice of marketing, packing and invoicing, i.e., whether the goods like Lehnga-Choli. Skirt-Blouse, etc, are being sold as one unit of ready made garment at one price or these are individual components and being asked for buyers as separate pieces of garments and invoices issued separately (or prices shown separately on the same invoice). If the garments though in sets are treated as individual components and billed and packed individually then the drawback cap may be applied to each such single piece of garment. However, where the garment though in ensembles, viz.Ghagra-Choli, Choli-Lehnga , etc., are sold and marketed at one price as single unit of garment, drawback caps of Rs.65.00 and Rs.39.00 would be applicable to complete sets/ensembles.
3. All past cases may be reviewed in the light of above and recoveries may kindly be effected wherever necessary.
4. Suitable public Notice for information of the trade and standing orders for guidance of the staff may kindly be issued on the above lines.
5. Receipt of the Circular may please be acknowledged.