Ascertain whether the exporter is entitled to duty drawback in the following independent cases and if yes, what is the quantum of such duty drawback ? (iii) FOB value of 2,000 kg of goods exported is ₹ 2,00,000. Rate of
CS Professional · Advanced Tax Laws · PYQS · June 2024
Ascertain whether the exporter is entitled to duty drawback in the following independent cases and if yes, what is the quantum of such duty drawback ? (iii) FOB value of 2,000 kg of goods exported is ₹ 2,00,000. Rate of duty drawback on such export is ₹ 16 per kg. Market price of goods exported is ₹ 54,000 (in wholesale market).
Answer & Explanation:
(iii) Rule 9 of Customs and Central Excise Duties Drawback Rules, 2017 provides that the drawback amount or rate shall not exceed one third of the market price of the export product. Hence, in this case instead of ₹ 32,000 (i.e. 2,000 kgs x ₹ 16 Per Kg) only ₹ 18,000 (1/3 of ₹ 54,000) is allowed as drawback.
Topics: Customs Act
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