Rise India Ltd. has exported goods to Germany out of its imports from Japan. Calculate the Duty Drawback admissible to Rise India Ltd. under section 75 of Customs Act, 1962 in each of the following cases giving reasons f

CS Professional · Advanced Tax Laws · PYQS · June 2021
Rise India Ltd. has exported goods to Germany out of its imports from Japan. Calculate the Duty Drawback admissible to Rise India Ltd. under section 75 of Customs Act, 1962 in each of the following cases giving reasons for the same : Product FOB Value of Exported Goods ₹ Market Price of Goods ₹ Duty Draw Back Rate A 3,00,000 2,10,000 30% of FOB B 4,00,000 4,60,000 35% of FOB C 2,00,000 2,50,000 20% of FOB Note: Value of imported material of product B is 5 Lakh. Product C is manufactured out of the imported input for which no duty has been paid.

Answer & Explanation:

Computation of Duty Drawback of Rise Ltd. Product FOB Value of Exported Goods Market Value of Goods Rate of Duty Drawback Amount of Duty Drawback Eligible Amount of Duty Drawback A 3,00,000 2,10,000 30% of FOB 90,000 70,000 B 4,00,000 4,60,000 35% of FOB NIL NIL C 2,00,000 2,50,000 20% of FOB NIL NIL Working Notes: Product A: Maximum Duty Drawback is 1/3 of Market prize (₹ 2,10,000 x 1/3). Product B: FOB Value of exported goods is less than value of imported goods. Product C: Where no Custom Duty paid no Duty Drawback can be allowed.

Topics: Customs Act - Duty Drawback

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