QUESTION
Mr. A has Imported Aluminium Alloy ingots from X and paid the duty using licences. After some time he has Re-Exported the goods to Mr. Y . now he want drawback refund under Section 74 of Customs Query - he has not Re Exported the goods to same supplier X, is he eligible for drawback refund under Sec 74? Mr A Paid BCD by using licenses and not actually paid anything at that time , can he get refund of drawback?
ANSWER
Facts of the case: Mr. A has imported aluminium alloy ingots from X and paid the duty using licences. After some time he has re-exported the goods to Mr. Y . Is he eligible for drawback refund under sec 74? Mr A paid BCD by using licenses and not actually paid anything at that time, can he get refund of drawback?
Law Applicable: Notification No. 24/2015 - Customs Dated 08/04/2015
Regarding implementation of
Merchandise Export from India Scheme (MEIS) under FTP 2015-2020- G.S.R. 269
(E).- In exercise of the powers conferred by sub-section (1) of section 25
of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied
that it is necessary in the public interest so to do, hereby exempts goods when
imported into India against a duty credit scrip issued by the Regional Authority
under the Merchandise Exports from India Scheme in accordance with paragraph
3.04 read with paragraph 3.05 of the Foreign Trade Policy (hereinafter referred
to as the said scrip) from,-
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2. The exemption shall be subject to the following conditions, namely :-
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(8) that the importer shall be entitled to avail of the drawback of the duty of
customs leviable under the First Schedule to the said Customs Tariff Act against
the amount debited in the said scrip;
(9) that the importer shall be entitled to avail drawback or CENVAT credit of
additional duty leviable under sub-sections (1), (3) and (5) of section 3 of the
said Customs Tariff Act against the amount debited in the said scrip;
Reply: As per Notification
No. 24/2015 - Customs Dated 08/04/2015 vide clause 2(8) and 2(9) the importer
shall be entitled to avail of the drawback of the duty of customs leviable under
the First Schedule to the said Customs Tariff Act against the amount debited in
the said scrip and shall be entitled to avail drawback or CENVAT credit of
additional duty leviable under sub-sections (1), (3) and (5) of section 3 of the
said Customs Tariff Act against the amount debited in the said scrip. (Reply
dt. 05/07/2021)