Duty drawback

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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

Replies (3)
No duty drawback is provided to any encourage export and hence these benefits are provided to the manufacturing companies. You are entitled to take the CENVAT credit on inputs and inputs service, the view of the department is not proper and not tenable.

Dear Sir,

 Thanks for  the reply.

Could you provide me any notification number  or case study to present before the Excise Officer

 

Rgds

CChatterjee

Infact You can ask the Excise officer himself to provide you with the relevant circular .Actually you can take CENVAT credits for the Inputs if you area manufacturer


CCI Pro

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