Rebate of duties paid on raw materials used in manufacture or processing of export goods and admissibility of duty drawback in such cases

No:CLE/HO/Pol/Circular/2016
October 21, 2016

Members of the Council,

Sub:    Rebate of duties paid on raw materials used in manufacture or processing of export goods and admissibility of duty drawback in such cases – reg.


Dear Sir,
The Central Board of Excise & Customs has issued a Circular No.1047/35/2016-CX dated Sept 16, 2016 on the above subject. This circular states the following.

  • Where in respect of exports, CENVAT credit is not availed on inputs but input stage rebate on excisable goods except diesel is availed under rule 18 of the Central Excise Rules, 2002, Drawback of Customs portion, as per rates and caps specified in column (6) and (7) of the drawback schedule shall be admissible.
  • Where in respect of exports, CENVAT credit is not availed on inputs but the inputs except diesel, are procured without payment of Central Excise duty under sub-rule (2) of rule 19 of Central Excise Rules, 2002, drawback of customs portion, as per rates and caps specified in column (6) and (7) of the drawback schedule shall be admissible.
  • Where in respect of exports, inputs stage rebate on diesel under rule 18 of Central Excise Rules, 2002 is availed or diesel is procured without payment of Central Excise duty under sub-rule (2) of rule 19 of Central Excise Rules, 2002, no drawback either under column (6) and (7) or column (4) and (5) of the drawback schedule shall be admissible.

Members may kindly note the above.

Thanks & regards,
R.Ramesh Kumar
Executive Director