Rule 3 - Drawback - Customs, Central Excise Duties and Service Tax Drawback Rules, 1995

Drawback. -RULE 3. (1) Subject to the provisions of - (a) the Customs Act, 1962 (52 of 1962) and the rules made thereunder, (b) the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder, [x x x] [(bb) the Finance Act, 1994 (32 of 1994), and the rules made thereunder; and] 6 [(bc) the Central Goods and Services Tax Act, 2017 (12 of 2017) and the rules made thereunder, (bd) the Integrated Goods and Services Tax Act, 2017 (13 of 2017) and the rules made thereunder; and] (c) these rules, a drawback may be allowed on the export of goods at such amount, or at such rates, as may be determined by the Central Government : Provided that where any goods are produced or manufactured from imported materials or excisable materials or by using any taxable services as input services, on some of which only the duty or tax chargeable thereon has been paid and not on the rest, or only a part of the duty or tax chargeable has been paid; or the duty or tax paid has been rebated or refunded in whole or in part or given as credit, under any of the provisions of the Customs Act, 1962 (52 of 1962) and the rules made thereunder, or of the Central Excise Act, 1944 ( 1 of 1944) and the rules made thereunder, or of the Finance Act, 1994 ( 32 of 1994) and the rules made thereunder, the drawback admissible on the said goods shall be reduced taking into account the lesser duty or tax paid or the rebate, refund or credit obtained : Provided further that no drawback shall be allowed - (i) if the said goods, except tea chests used as packing material for export of blended tea, have been taken into use after manufacture; (ii) if the said goods are produced or manufactured, using imported materials or excisable materials or taxable services in respect of which duties or taxes have not been paid; or (iii) on jute batching oil used in the manufacture of export goods, namely, jute (including Bimlipatam jute or mesta fibre), yarn, twist, twine, thread, cords and ropes; (iv) if the said goods, being packing materials have been used in or in relation to the export of - (1) jute yarn (including Bimlipatam jute or mesta fibre), twist, twine, thread and ropes in which jute yarn predominates in weight; (2) jute fabrics (including Bimlipatam jute or mesta fibre), in which jute predominates in weight; (3) jute manufactures not elsewhere specified (including Bimlipatam jute or mesta fibre) in which jute predominates in weight. 5 [(v) ***] (2) In determining the amount or rate of drawback under this rule, the Central Government shall have regard to, - (a) the average quantity or value of each class or description of the materials from which a particular class of goods is ordinarily produced or manufactured in India; (b) the average quantity or value of the imported materials or excisable materials used for production or manufacture in India of a particular class of goods; (c) the average amount of duties paid on imported materials or excisable materials used in the manufacture of semis, components and intermediate products which are used in the manufacture of goods; (d) the average amount of duties paid on materials wasted in the process of manufacture and catalytic agents : Provided that if any such waste or catalytic agent is re-used in any process of manufacture or is sold, the average amount of duties on the waste or catalytic agent re-used or sold shall also be deducted; (e) the average amount of duties paid on imported materials or excisable materials used for containing or, packing the export goods; (ea) the average amount of tax paid on taxable services which are used as input services for the manufacturing or processing or for containing or packing the export goods. (f) any other information which the Central Government may consider relevant or useful for the purpose. ********** Notes: 1. Inserted vide notification no. 64/2008 Cus(NT) dated 29-5-2008 2. For the words and figures falling within Chapter 72 or heading 1006 or 2523 , the words and figures falling within heading 1006 or 2523 has been substituted vide Notification No. 129/2008 Cus (NT) dated 21/11/2008 , Further substituted vide notification no. 33/2010 Cus(NT) dated 29/4/2010 , before it was read as, falling within heading 1006 or 2523 , Further substituted vide notification no. Notification No. 9 / 2011 - Customs (N.T.) dated 10/02/2011, before it was read as, falling within heading 1006, 2523, 5205, 5206 or 5207 ,Further substituted vide notification no. Notification No. 69 / 2011 - Customs (N.T.) dated 22/09/2011 before it was read as, falling within heading 0401, 0402, 0403, 0404, 0405, 0406, 1006, 2523, 3501, 5205, 5206 or 5207 3. Substituted vide Notification No. 97/2013- Customs (N.T) dated September 14, 2013 , w.e.f. 21 st September, 2013, before it was read as, 2 [falling within heading 0401, 0402, 0403, 0404, 0405, 0406, 1006 or 3501] 4. Words and figures on any of the goods falling within heading 1006 or , omitted vide Not. 20/2015 - Dated 10-2-2015 , before it was read as, 1 [(v) on any of the goods 3 [falling within heading 1006 or on wheat falling within heading 1001] of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).] 5. Omitted vide Not. 109/2015 - Dated 16-11-2015, w.e.f. 23rd November, 2015 before it was read as, 4 [(v) on wheat falling within heading 1001 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).] 6. Inserted vide Not. 58/2017 - Dated 29-6-2017 w,e.f. 1st day of July, 2017