FOB value of 2,000 kgs. of goods exported is ₹2,00,000. Rate of duty drawback on such export is ₹30 per kg. The market price of goods is of ₹50,000 in the wholesale market.

Section 76(1)(b) of the Customs Act, 1962 inter alia provides that no drawback shall be allowed in respect of any goods, the market price of which is less than the amount of drawback due thereon. In this case, the market price of the goods is ₹50,000/- which is less than the amount of duty drawback, i.e. 2,000 kgs x ₹30 = ₹60,000/-. Hence, no drawback shall be allowed.