Clarification regarding applicability of All Industry Rates of Duty Drawback while fixing Brand rate of Duty Drawback in post GST Era issued by the C.B.I.T.& C., New Delhi, vide Circular No.24/2019- Customs dated 8th August, 2019 - Customs - PUBLIC NOTICE NO. 14/2019

OFFICE OF THE COMMISSIONER OF CUSTOMS, G. S. T. BHAWAN, 41/A, SASSOON ROAD, PUNE-411001 F. No. VIII/Cus/Tech/PN/48-30/2018 Dated: 24.09.2019 PUBLIC NOTICE NO. 14/2019 Subject - Clarification regarding applicability of All Industry Rates of Duty Drawback while fixing Brand rate of Duty Drawback in post GST Era issued by the C.B.I.T. C., New Delhi, vide Circular No.24/2019- Customs dated 8th August, 2019 - Attention is invited to the Circular No.83/2003-Customs dated 18.9.2003 and 97/2003-Customs dated 14.11.2003, issued by the Board vide F.No.609/39/2019-DBK. These Circulars were issued allowing the applicability of All Industry Rates (AIRS) of Duty drawback in respect of certain specific items, namely, finished lining leather, bicycles and their parts / accessories and bus bodies when used in export products while determining Brand rate of Duty Drawback under Rules 6 7 of the then Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 ( now the Customs, Central Excise Duties Drawback Rules, 2017). These clarifications in the pre-GST era were issued based on the premise that the aforesaid items were exempt from levy of Central Excise Duty and the burden of duties on their inputs remained unrelieved. 2. However, post GST, since Central Excise Duty on inputs and Service Tax on input services used in the manufacture of export goods have been subsumed in GST for which input tax credit / refund is available thereon, the basic purpose of applicability of AIRS for calculation of Brand Rate of Duty Drawback no longer exists for the exports made under the GST regime. In view of this situation, it is clarified that the contents of para 3(a) and para 3(b) of the Circular No. 83/2003-Customs dated 18.9.2003 and 97/2003- Customs dated 14.11.2003, are not applicable for exports made in post GST Era. 3. As regard to the duties to be rebated under Duty drawback scheme in post GST Era which are not refunded or neutralized in any other manner, these duties can be claimed by the exporter on actual basis in terms of Rule 6 and Rule 7 of the Customs, Central Excise Duties Drawback Rules, 2017. 4. The concerned exporters, in case of any difficulty, are requested to approach the Deputy / Assistant Commissioner in charge of the Brand Rate Unit of the Commissionerate, located at E- Wing, IV Floor, GST Bhavan, Bund Garden Road, Pune- 411 001 (Phone No.020-26051846) (P. K. BEHERA) COMMISSIONER