Compute the amount of Duty Drawback under section 74 of the Customs Act, 1962, the following independent cases: Dashing Ltd. has imported used wearing apparel in the month of February, 2025 from Singapore and paid import
CS Professional · Advanced Tax Laws · PYQS · June 2025
Compute the amount of Duty Drawback under section 74 of the Customs Act, 1962, the following independent cases: Dashing Ltd. has imported used wearing apparel in the month of February, 2025 from Singapore and paid import duty of ₹ 7,50,000. After receipt, the company management has doubts regarding its sale in the local market. Hence, the company has re-exported back the wearing apparel without use.
Answer & Explanation:
Duty drawback is allowed on re-export of imported wearing apparels only when the same has not been used after import. Where imported goods exported as such without putting into use, the drawback available is 98% of the duty paid on import. Accordingly, Duty drawback available to Dashing Limited is ₹ 7,35,000 (₹ 7,50,000 x 98%).
Topics: Customs Act
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