No:S-11/2/2000 Dated:25.7.2001

At present the facility of Brand Rate of Drawback is extended to exports made under DEPB Scheme against DEPB-cum-Drawback Shipping Bills subject to specified conditions.

Certain doubts have arisen in regard to the types of cases where under the facility of 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 Duty Drawback Rules. Under duty exemption scheme, 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 duty 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

1. 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 .

(P. KARTHIKEYAN)
COMMISSIONER

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