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Customs Circular No. 2/ 2003-Cus dated 3.1.2003
Duty drawback rates for Non-Alloy steel and Alloy steel forgings - regarding.

Attention is invited to the SS Nos.73.29 and 73.30 of the Drawback Schedule, 2002-2003, whereby duty drawback rates have been provided for non-alloy/ carbon steel forgings, etc. and alloy steel forgings, etc., respectively. However, these entries have composite rates of drawback, i.e., having both Customs and Central Excise components. The admissibility of drawback under these entries is further subject to the condition of 'non-availment of Cenvat facility'.

2. The Engineering Export Promotion Council has represented that for those cases where the Cenvat facility has been availed, the drawback equivalent to the Customs component may be provided as has been made available to other products.
3. The issue has been examined. Since the basic objective of stipulating the condition of 'non-availment of Cenvat facility' has been to prevent accrual of double benefits on account of Central Excise component only, no revenue loss shall entail if at least the Customs component is permitted to those exporters who avail of Cenvat facility.

4. It is, therefore, clarified that in all those cases relating to SS No.73.29 and 73.30 of the Drawback Schedule, where the exporters avail of the Cenvat facility, the relevant Customs component of the notified drawback rate may be allowed as drawback.

5. All pending cases of the parties may be decided accordingly.

6. Suitable public notices for information of the trade and standing orders for guidance of the staff may kindly be issued on the above lines.

7. The receipt of this Circular may kindly be acknowledged.

Yours faithfully,

(S.S. Renjhen)
Joint Secretary to the Government of India
Telefax No. 23341079

F.No.609/112/2002-DBK
Government of India; Ministry of Finance & Company Affairs; Department of Revenue