Duty drawback

Chinmoy (Service) (29 Points)

20 July 2012  

Dear Friend,

   Our Company has faced  following problem

We export goods to various countries. Our Product is excisable.

We take Cenvat  credit at the time of purchase and export the goods claiming duty drawback at the rate allowable to the exporter  mentioned  in Duty drawback rates as "Drawback when cenvat facilities has been availed ". We export the goods under LUT that is  without paying  applicable excise duties.

So far there was no problem. But in the course of EXCISE audit , the excise officer has raised objection and said that  duty drawback was  not available when Cenvar credit had been taken on the purchase of the goods in relation to exports.

Is the logic tenable

Rgds

CChatterjee