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TMI Blog2006 (4) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... H 40.07 of the Customs Tariff. Since they exported the products, they claimed duty drawback at the rates notified in the Schedule to the All-Industry Rates of Drawback. In all, there were 10 Shipping Bills. Show Cause Notice was issued to the appellants on the ground that they are not entitled to the Customs portion of the duty drawback inasmuch as duty paid imported raw material utilized in the manufacture of the export product was a negligible 2%. The Commissioner, in the impugned order, disallowed drawback to the tune of Rs. 43,70,700/- relying on the first proviso to Rule 3 of the Customs and Central Excise Duties Drawback Rules, 1995 to hold that the drawback amount should be reduced having regard to the quantity of duty paid raw mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industry Average. We find that this issue has been clarified in Board s Circular No. 19/2005, dated 21-3-2005, which is reproduced below :- Drawback on export goods manufactured partly of non-duty paid Inputs Circular No. 19/2005-Cus., dated 21-3-2005 F. No. 609/13/2004-DBK Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Admissibility of All Industry Rates of Duty Drawback on Export Goods Manufactured from out of inputs, some of which are Non-Duty Paid. I am directed to invite your attention to the above subject and to say that a doubt has been raised as to whether the All Industry Rate of duty drawback is to be denied/reduced on export goods using inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular exporter or individual consignments exported by any exporter under drawback claim. It was categorically stated in the said Circular that the first proviso to rule 3 of Drawback Rules, 1995 is meant for the Ministry and that it essentially provides a guideline as to how the duty drawback rates are to be determined in certain situations and is not intended for the field formations to use this rule for arbitrarily altering All Industry Rates of duty drawback in the case of individual exporters for individual consignments. 3. From the above it may be noted that the concept of All Industry Rate of duty drawback is that the rates are determined taking into account the average duties paid on the inputs and in determining the rates, the ave ..... X X X X Extracts X X X X X X X X Extracts X X X X
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