Rule 7 - Cases where amount or rate of drawback determined is low - Customs, Central Excise Duties and Service Tax Drawback Rules, 1995

12 [ 7. Cases where amount or rate of drawback determined is low. (1) Where, in respect of any goods, the exporter finds that the amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, for the class of goods is less than eighty per cent. of the duties or taxes paid on the materials or components or input services used in the production or manufacture of the said goods, he may, except where a claim for drawback under rule 3 or rule 4 has been made, within three months from the date relevant for the applicability of the amount or rate of drawback in terms of sub-rule (3) of rule 5, make an application to the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, having jurisdiction over the place of export, for determination of the amount or rate of drawback thereof stating all relevant facts including the proportion in which the materials or components or input services are used in the production or manufacture of goods and the duties or taxes paid on such materials or components or input services: Provided that - (i) in case an exporter is exporting the aforesaid goods from more than one place of export, he shall apply to the Principal Commissioner or Commissioner of Customs, having jurisdiction over any one of the said places of export; (ii) the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, may extend the aforesaid period of three months by a period of three months and that the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, may further extend the period by a period of six months; (iii) the Assistant Commissioner of Customs or Deputy Commissioner or Principal Commissioner of Customs or Commissioner of Customs, as the case may be, may, on an application and after making such enquiry as he thinks fit, grant extension or refuse to grant extension after recording in writing the reasons for such refusal; (iv) an application fee equivalent to 1% of the FOB value of exports or one thousand rupees whichever is less, shall be payable for applying for grant of extension to the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be and an application fee of 2% of the FOB value or two thousand rupees whichever is less, shall be payable for applying for grant of extension by the Principal Commissioner of Customs or Commissioner of Customs, as the case may be. (2) On receipt of the application referred to in sub-rule (1), the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, may, after making or causing to be made such inquiry as it deems fit, allow payment of drawback to such exporter at such amount or at such rate as may be determined to be appropriate, if the amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, is in fact less than eighty per cent. of such amount or rate determined under this sub-rule. (3) Provisional drawback amount, as may be specified by the Central Government, shall be paid by the proper officer of Customs and where the exporter desires that he may be granted further drawback provisionally, he may, while making an application under sub-rule (1), apply to the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, in this behalf in the manner as has been provided in clause (a) of sub-rule (2) of rule 6 for the application made under that rule along with details of provisional drawback already paid and the grant of further provisional drawback shall be considered in the manner and subject to the conditions specified in clauses (b) and (c) of sub-rule (2), and sub-rule (3) of rule 6, subject to the condition that bond required to be executed by the claimant shall only be for the difference between amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4 by the Central Government and the provisional drawback authorised by the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, under this rule. (4) Where the Central Government considers it necessary so to do, it may, (a) revoke the rate of drawback or amount of drawback determined under sub-rule (2) by the Principal Commissioner of Customs or Commissioner of Customs, as the case may be; or (b) direct the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, to withdraw the rate of drawback or amount of drawback determined. Explanation.- For the purpose of this rule, place of export means customs station or any other place appointed for loading of export goods under section 7 of the Customs Act, 1962 (52 of 1962) from where the exporter has exported the goods or intends to export the goods in respect of which determination of amount or rate of drawback is sought.] **************************** Notes: 1. Inserted vide notification no. 64/2008 Cus(NT) dated 29-5-2008 2. For the words and figures falling within Chapter 72 or heading 1006 or 2523 , the words and figures falling within heading 1006 or 2523 has been substituted vide Notification No. 129/2008 Cus (NT) dated 21/11/2008 , Further substituted vide notification no. 33/2010 Cus(NT) dated 29/4/2010 , before it was read as, falling within heading 1006 or 2523 , Further substituted vide notification no. Notification No. 9 / 2011 - Customs (N.T.) dated 10/02/2011 ,before it was read as, falling within heading 1006, 2523, 5205, 5206 or 5207 . Further substituted vide notification no. Notification No. 69 / 2011 - Customs (N.T.) dated 22/09/2011 , before it was read as falling within heading 0401, 0402, 0403, 0404, 0405, 0406, 1006, 2523, 3501, 5205, 5206 or 5207 3. Substituted vide notification no. 49/2010 Cus(NT) dated 17/6/2010 , before it was read as, sixty days 4. Substituted vide notification no. 49/2010 Cus(NT) dated 17/6/2010 , before it was read as, Provided that the Commissioner of Central Excise or the Commissioner of Customs and Central Excise may, if he is satisfied that the manufacturer or exporter was prevented by sufficient cause from making the application within the aforesaid time, allow such manufacturer or exporter to make such application within a further period of thirty days. 5. Substituted vide Notification No. 97/2013- Customs (N.T) dated September 14, 2013 , w.e.f. 21 st September, 2013, before it was read as, 2 [falling within heading 0401, 0402, 0403, 0404, 0405, 0406, 1006 or 3501]. 6. Substituted vide Notification No. 109 /2014- Customs (N.T) dated 17th November, 2014 , w.e.f. 22 nd November, 2014 , before it was read as, he may within 3 [three months] 7. Words and phrases any of the goods falling within heading 1006 or on omitted vide Not. 20/2015 - Dated 10-2-2015, before it was read as, 1 [(5) No amount or rate of drawback shall be determined in respect of any of the goods 5 [falling within heading 1006 or on wheat falling within heading 1001] of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).] 8. Substituted vide Not. 23/2014 - Dated 6-8-2014. 9. Substituted vide Not. 109/2015 - Dated 16-11-2015, w.e.f. 23rd November, 2015 before it was read as, Where the manufacturer or exporter desires that he may be granted drawback provisionally 10. Substituted vide Not. 109/2015 - Dated 16-11-2015, w.e.f. 23rd November, 2015 before it was read as, applications made under that rule and the grant of provisional drawback 11. Omitted vide Not. 109/2015 - Dated 16-11-2015, w.e.f. 23rd November, 2015 before it was read as, 7 [(5) No amount or rate of drawback shall be determined in respect of wheat falling within heading 1001 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).] 12. Substituted vide Not. 58/2017 - Dated 29-6-2017 w,e.f. 1st day of July, 2017 before it was read as, RULE 7. Cases where amount or rate of drawback determined is low. - (1) Where, in respect of any goods, the manufacturer or exporter finds that the amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, for the class of goods is less than four-fifth of the duties or taxes paid on the materials or components or input services used in the production or manufacture of the said goods, 6 [he may, except where a claim for drawback under rule 3 or rule 4 has been made, within three months] from the date relevant for the applicability of the amount or rate of drawback in terms of sub-rule (3) of rule 5, make an application in writing to the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner, as the case may be] of Customs and Central Excise having jurisdiction over the manufacturing unit, of the manufacturer or, of the supporting manufacturer, as the case may be, for determination of the amount or rate of drawback thereof stating all relevant facts including the proportion in which the materials or components or input services are used in the production or manufacture of goods and the duties or taxes paid on such materials or components or input services : 4 [Provided that- (i) the Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise, as the case may be, may extend the aforesaid period of three months by a period of three months and that the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner, as the case may be] of Customs and Central Excise, as the case may be, may further extend the period by a period of six months; (ii) the Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise or 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner,] of Customs and Central Excise, as the case may be, may, on an application and after making such enquiry as he thinks fit, grant extension or refuse to grant extension after recording in writing the reasons for such refusal; (iii) an application fee equivalent to 1% of the FOB value of exports or ₹ 1000/- whichever is less, shall be payable for applying for grant of extension by the Assistant Commissioner of Central Excise or Assistant Commissioner of Customs and Central Excise or Deputy Commissioner of Central Excise or Deputy Commissioner of Customs and Central Excise, as the case may be and an application fee of 2% of the FOB value or ₹ 2000/- whichever is less, shall be payable for applying for grant of extension by the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise,] or the 8 [Principal Commissioner or Commissioner, as the case may be] of Customs and Central Excise, as the case may be.] (2) On receipt of the application referred to in sub-rule (1), the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner,] of Customs Central Excise, as the case may be, may, after making or causing to be made such inquiry as it deems fit, allow payment of drawback to such exporter at such amount or at such rate as may be determined to be appropriate, if the amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, is in fact less than four-fifth of such amount or rate determined under this sub-rule. (3) 9 [Provisional drawback amount, as may be specified by the Central Government, shall be paid by the proper officer of Customs and where the manufacturer or exporter desires that he may be granted further drawback provisionally], he may, while making an application under sub-rule (1), apply to the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner,] of Customs and Central Excise, as the case may be, in writing in this behalf in the manner as has been provided in clause (a) of sub-rule (2) of rule 6 for the 10 [applications made under that rule along with details of provisional drawback already paid and the grant of further provisional drawback] shall be considered in the manner and subject to the conditions specified in clauses (b) and (c) of sub-rule (2), and sub-rule (3) of rule 6, subject to the condition that bond required to be executed by the claimant shall only be for the difference between amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4 by the Central Government and the provisional drawback authorised by the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner,] of Customs and Central Excise, as the case may be, under this rule. (4) Where the Central Government considers it necessary so to do, it may - (a) revoke the rate of drawback or amount of drawback determined under sub-rule (2) by the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner,] of Customs and Central Excise, as the case may be, or (b) direct the 8 [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] or the 8 [Principal Commissioner or Commissioner,] of Customs and Central Excise, as the case may be, to withdraw the rate of drawback or amount of drawback determined. 11 [(5) ***]