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2016 (11) TMI 1223 - AT - Central ExciseDuty drawback - appellant has failed to establish that the goods imported under advance licenses were not utilised on manufacture of exported goods on which duty drawback is claimed - Held that: - Duty drawback is a relief by way of refund of customs/excise duties paid on inputs or raw materials and service tax paid on input services used in the manufacture of export goods - The second proviso to Rule 3 of Drawback Rules, 1995 states that the exporter cannot claim drawback if duties have not been paid on the inputs, input services. The intention of the said Rule is not to allow drawback on inputs obtained without payment of customs or excise duty. The contention put forward by appellant is that out of the 27 inputs only 5 were imported. The remaining 22 inputs suffered duty. That being a processing industry, the input gets mixed up and it is very difficult to identify a particular input imported under Advance License and used for manufacture and the quantity of inputs imported by Advance License used in manufacture being very less the drawback may allowed. I am not able to agree with this contention of appellant. When the Rule itself, does not permit drawback in case of inputs on which duty has not been paid, the appellant ought to have maintained some procedure/ segregation / accounting method for the inputs used in manufacture of products exported, if the appellant intended to claim drawback. The rejection of drawback claim on this ground holds merit. Appeal dismissed - claim of duty drawback rejected - decided against exporter-appellant.
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