Query about duty drawback

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2015 Dear members
Our company is exporting glass bottles which are purchased locally from a manufacturer. We are merchant exporter and we purchase goods on the basis of H form for sales tax and CT-1 for excise duty. Thus no taxes are paid on purchase of such goods. Said goods are consigned directly from the premises of our vendor to our foreign client.
Now our company is claiming duty drawback on the said exported goods @1.9% of FOB.
As per my knowledge DDB is allowed only and only if duty is paid on exported goods. But goods which are exported by us are purchased from local vendor hence their is no custom duty, we purchase goods on the basis of CT-1 hence excise duty is also nil, For sales tax we give H form to our vendor. All in all we pay zero tax on our purchase. So my question is HOW WE ARE CLAIMING DUTY DRAWBACK ON GOODS EXPORTED BY US. MY CHA JUST SAID THAT IT IS AS PER CBEC NOTIFICATION WE CAN'T TELL YOU OUR BUSSINESS SECRETS IF YOU DON'T WANT DDB CLAIM THAN ITS UPTO YOU. But to be on safe side I want to know "are we good at claiming DDB???". Can the member(s) explain how we are claiming DDB?

vaithy

vaithy (Expert)
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27 August 2015
duty drawback is refund of duty paid on imported goods exported.

1). where you are not paid any duty. you are not eligible for claim the benefit.

2).once they found it, by any of the time. they (customs) charge interest and penalty.

further any question please mail...