OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE
AHMEDABAD – I
TRADE NOTICE NO. 83/20005
BASIC NO. 79/2005
Sub : Eligibility of brand rate of duty drawback where
inputs used in the manufacture of export products
are imported availing of DEPB - clarification – m/r.
The Govt. of India, Ministry of Finance, Department of Revenue, CBEC, New Delhi has issued a Circular No. 41/2005-Customs dated 28th October, 2005 from F.No. 609/17/2005-DBK under which an issue has been raised before the Board as to whether additional Customs duty paid through debit under DEPB can be allowed as brand rate of duty drawback.
02. 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.
03. Accordingly, the instruction contained in Circular No. 3/99-Cus. Dated 3.2.1999 stand modified.
04. The Trade Association/Chamber of Commerce and the Member of the RAC/PGC are requested to bring this to the notice of their members / constituents.
JOINT COMMISSIONER (Tech),
AHMEDABAD – I.
F.No.:IV/16-01/MP/2005-Pt.III Date : 23nd December, 2005.
Encl.: As above.
Copy to : As per mailing list of Trade & Deptt.