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Regarding Duty Drawback Rates for Non-Alloy Steel and Alloy Steel
Forgings
Customs
Circular No. 4 dated 21st January 2003
Attention
is invited to the SS Nos.73.29 and 73.30 of the Drawback Schedule, 2002-2003,
whereby duty drawback rates have been provided for non-alloy/ carbon steel
forgings, etc. and alloy steel forgings, etc., respectively. However, the
admissibility of drawback under these entries is further subject to the
condition of �non-availment of Cenvat facility�.
2.
The Engineering Export Promotion Council has represented that duty
drawback rates in respect of these products have been determined by taking into
consideration only �Steel� as the input. Therefore, they should be permitted
to avail of the Cenvat facility as regards the other inputs other than
�Steel�, for example, consumables, furnace oil, high speed diesel oil, light
diesel oil, superior kerosene oil, machinery spares, die blocks, etc.
3.
The issue has been examined. It is a fact that the duty drawback rates in
respect of these products falling under SS No.73.29 and 73.30 of the Drawback
Schedule have been formulated by taking into account the duty incidence only in
respect of steel. The duty incidence on account of other inputs has not been
considered while computing these rates. Therefore, if the exporters avail Cenvat
facility in respect of inputs other than steel, no double benefit shall accrue.
4.
It is, therefore, clarified that in all those cases relating to SS Nos.
73.29 and 73.30 of the Drawback Schedule where the exporters have availed the
Cenvat facility in respect of inputs other than steel, duty drawback should not
be denied.
5.
All pending cases of the parties may be decided accordingly.
6.
Suitable public notices for information of the trade and standing orders
for guidance of the staff may kindly be issued on the above lines.
7.
The receipt of this Circular may kindly be acknowledged.
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