2.    These issues have been considered in the Board, and the decision on each issue is given below.

3.    Since there is no restriction on the nature of goods to be imported under DEPB Scheme, goods which are being imported under other Schemes like EPCG Schemes and Project Import can also be cleared against DEPB Scrips. In such cases, the exemption from Special Additional Duty of Customs of 4% vide Notification No. 48/ 98- Cus. dated 17.7.98 will also be admissible to goods imported against DEPB Scrips.

4.    It may be recalled here that Notification No. 34/97 dated 7.4.97 is an exemption notification which fully exempts goods imported against a DEPB scrip from the whole of basic customs duty and / or additional customs duty. This exemption is operated by making a debit of duty leviable in the DEPB scrip. In case the import goods are eligible for another partial exemption from payment of duty, such exemption would also be applicable to goods imported against a DEPB scrip, provided the import goods meet the conditions, if any, laid down in the partial exemption exemption notification. In other words, the duty debitable in the DEPB scrip, in such a case would take into account the concessional rate of duty permitted under the partial exemption notification, and not tariff rate of duty.