Cases where refunds have not been granted due to claiming higher rate Of drawback OR where higher rate and lower rate were identical - Customs - PUBLIC NOTICE NO.84/2018

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT) AIR CARGO COMPLEX SAHAR, ANDHERI (EAST), MUMBAI - 400099 F.NO.:S/3-Misc-PRO-04/2017-18/ACC(I) Date: 18.10.2018 PUBLIC NOTICE NO.84/2018 Sub; Cases where refunds have not been granted due to claiming higher rate Of drawback OR where higher rate and lower rate were identical -reg. Attention of Exporters/Customs Brokers and General Public is invited to the Board's Circular no. 37/2018 dated 09.10.2018 on the above subject. The same is reproduced for the knowledge and utility of all the stake holders concerned. 2. Numerous representations have been received from exporters/ export associations, regarding cases where IGST refunds have not been granted because higher rate of drawback has been claimed or where higher rate and rate and lower rate were identical. 3.0 The issue has been examined extensively in the Ministry. The legal provisions related to drawback claims are as under: 3.1 Note and condition (11) of Notf.No.131/2016 Cus(NT) dated 31.10.2016 (as amended by Notf.No.59/2017.Cus(NT) dated 29.06.2017). under which All Industry Rates of drawback had been notified and which .were applicable tor availing composite rates during period in question (i.e. 01.07.2017 to 30.09.2017). Prescribed that the rates and cops of drawback specified in the columns (4) and (5) of the said Schedule shall not be applicable to export commodity or product if such commodity or Product is- (d) exported claiming refund of the integrated goods and services tax paid on such exports. 3.2 Notes and Conditions (12A) of Notr.No.131/2016. Cus(NT) dated 31.10.2016 (as amended by Notf.No.59/2017.Cus(NT) dated 29.06.2017 and 73/2017.Cus(NT) dated 26.07.2017 prescribed that 'The rates and cops of drawback specified in columns (4) and (5) of the said Schedule Shall be applicable to export of a commodity or product if the exporter satisfies the following conditions. namely:- (ii) If the goods are exported on payment of integrated goods and services tax, the exporter shall declare that no refund of integrated goods and services tax paid on export product shall be claimed;... 3.3 In terms or Rules 12 and 13 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, the shipping bill itself is treated as claim for drawback in terms or the declarations made on the shipping bill. 3.4 The declarations required in terms or above Notes and Conditions and provisions of the Drawback Rules arc made electronically in the EDI System. When composite drawback rate was claimed (by declaring suffix A or C with Drawback serial number), exporter was required to tick DBK002 and DBK003 declarations in the shipping bills. In fact, for period 01.07.2017 to 26.07.2017, a manual declaration was also required to be given as the changes made on 26 07.2017 were made applicable tor exports made from 01.07.2017 onwards. 3.5 By declaring drawback serial number suffixed with A or C and by making above stated declarations, the exporters consciously relinquished their IGST/ITC claims. 4. It has been noted that exporters had availed the option to take drawback at higher rate in place of IGST refund out or their own volition. Considering the fact that exporters have made aforesaid declaration while claiming the higher rate of drawback, the Board has decided that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback and there is no justification for re-opening the issue at this Stage. 5. Any difficulty in following this Public Notice may be brought to the notice of ADC/IGST, Air Cargo Complex. 6. This will be treated as a Standing Order for the actions to be taken by the officers in terms of this Public Notice. 7. This issues with the approval or the Commissioner or Customs (Export), Zone-III. (DR. RAJU ASKTHIVEL) ADDITIONAL COMMISSIONER OF CUSTOMS (EXPORT) ACC, SAHAR, MUMBAI.