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)