2.    The related issues have been examined and by way of abundant precaution the position is being clarified as under :

i)    Simultaneous availment of DEPB and Drawback in permitted only in situations covered by our Circular No. 68/ 97- Cus. dated 2.12.97.

ii)    To dispel all doubts in the field it needs to be reiterated that Brand rate of drawback is admissible only against cash payment of duties, as is already laid down under Proviso (ii) of Rule 3 of the Customs & Central Excise Duties Drawback Rules, 1995. A debit of duties payable under DEPB Scheme / Passbook Scheme on import of goods is in effect availment of exemption of duty under the Customs Act. Being operated through an Exemption Notification, such debit does not constitute payment of duties. Therefore, no drawback is admissible against debit of duties made in a DEPB Book or in a Passbook issued under the erstwhile Passbook Scheme.