CIRCULAR
No.39/2001 Dated 6th July, 2001
Extension
of Brand Rate of Drawback Scheme to exports under DEPB Scheme against DEPB-cum-Drawback
shipping bills – regarding.
Attention
is invited to Board’s Circular Nos. 68/97-Cus. Dated 2.12.97 and 39/99-Cus.
Dated 25.6.99 (both issued from F.No.605/145/97-DBK in terms of which facility
of brand rate of Duty Drawback Scheme was extended to exports made under DEPB
Scheme against DEPB-cum-Drawback
shipping bills subject to conditions specified in the said two Circulars.
2.
Certain doubts have arisen in regard to the types of cases whereunder the
facility of both DEPB as well as Brand Rate of Drawback will be admissible. It
has been observed that Exim Policy provisions are very clear and indicate that
exports made under DEPB Scheme shall not be entitled for Drawback. However, the
additional customs duty paid in cash on inputs under DEPB can be claimed for
adjustment/relief by way of Modvat Credit or Duty Drawback as per rules of DOR.
Under duty exemption schemes, facility of drawback for duties paid if any was
extended only for inputs not covered by SION or inputs not permitted under
Advance licences to avoid unintended benefit. It is accordingly clarified that
facility of Brand Rate of Drawback for export made under DEPB Scheme against
DEPB-cum-Drawback shipping bills shall be allowed only in the following
situations:
|
(a) |
where
the additional duty of customs has been paid in cash on inputs imported
under DEPB Scheme used in export products & no MODVAT (CENVAT) has
been availed for such additional duty paid; and |
|
|
|
|
(b) |
Where
excise duty is paid on indigenous inputs not specified in relevant SION,
but used in export product and no MODVAT (CENVAT) has been availed for
such excise duty paid. |
3.
Brand rate of drawback in such cases shall be considered irrespective of whether
the export product is dutiable/excisable or not.
4.
Circular Nos.68/97-Cus. Dated 2.12.97 and 39/99-Cus dated 25.6.99 shall stand
corrected to the extent mentioned above in the preceding paragraphs and other
conditions of the said two Circulars shall continue to apply.
5.
All pending brand rate applications for exports made under DEPB Scheme against
DEPB-cum-Drawback shipping bills may be processed/disposed of
accordingly.
6.
Decisions in respect of past exports made against DEPB-cum-Drawback shipping
bills, where brand rate of drawback has already been granted, shall be examined
separately and suitable instructions shall follow.
7.
Suitable instructions/Standing Order may be issued for the
guidance of Trade/field staff.
8. Receipt of this Circular may please be acknowledged.
Sd/-(R.K. Talajia)S.T.O. (DBK)