Page 197 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes referring to the various judgments of the Tribunal came to the conclusion that the
Commission had jurisdiction to deal with the application for settlement. The High Court
stated that the reasons given by the Settlement Commission in support of its order are in
consonance with the Law laid down by the Supreme Court in the case of Liberty India v.
Commissioner of Income Tax (2009) 317 ITR 218 (SC) wherein the Supreme Court has
observed that drawback is nothing but remission of duty on account of statutory provisions
in the Act and Scheme framed by Government of India.
The High Court thus concluded that the duty drawback or claim for duty drawback is
nothing but a claim for refund of duty may be as per the statutory scheme framed by the
Government of India or in excise of statutory powers under the provisions of the Act.
Thus, the high Court held that the Settlement Commission has jurisdiction to deal with
the issue related to the recovery of drawback erroneously paid by the revenue.

Source: http://220.227.161.86/26942bos16384IDTL.pdf
11.11 Summary

 All goods brought for warehousing shall be produced to the officer-in-charge of the
warehouse together with the relative transport permit or certificate and shall be weighed,
measured or gauged in his presence, and assessed to duty prior to entry into the warehouse.
 The quantity and description of the goods, the marks and numbers of the packages, the
number and date of the permit or certificate and the amount of duty leviable thereon shall
be noted in the warehouse register.
 All goods received into a warehouse shall be kept separate from other goods until the
receipt account has been taken by the officer.
 The drawback on such imports is not prohibited by the Ministerial Regulations.
 The quantity of the imports used in producing, mixing, assembling, or packing exports is
in accordance with the rules approved or specified by Customs.
 The goods are exported through a port or place of exit designated for a drawback scheme.
 The goods are exported within one (1) year from the date of importation of the goods used
in producing, mixing, assembling or packing exported goods. In case where there is a
force majeure event that causes the delay of such exportation, Customs may extend the
aforementioned period by six (6) months.
 A claim for drawback must be made within six (6) months from the date of exportation of
the goods. However, Customs may extend this time limit on a case by case basis.

11.12 Keywords

Direct Identification Manufacturing: If articles manufactured in the United States with the use
of imported merchandise are subsequently exported or destroyed then drawback not exceeding
99 percent of the duties paid on the imported merchandise may be recoverable.
Rejected Merchandise: Merchandise is exported or destroyed because it does not conform with
samples or specifications, or has been shipped without the consent of the consignee,.
Substitution Manufacturing: Both imported merchandise and any other merchandise of the
same kind and quality are used to manufacture articles, some of which are exported or destroyed
before use, then drawback not exceeding 99 percent of the duty which was paid on the imported
merchandise may be payable on the exported/destroyed articles.

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