'Mandatory pre-deposit is payable in cases of drawback claim'

We had exported some goods under claim of drawback, which was granted. Then the department alleged misclassification and passed an adjudication order that we return the drawback. We want to appeal against that order. Do we have to pay a pre-deposit?

CBEC Circular no. 993/17/2014-CX., dated January 5, 2015, clarifies that drawback, like rebate in Central Excise, is refund of duty suffered on export goods. Section 129E stipulates that an appellant filing an appeal before the Commissioner (Appeals) shall pay 7.5% of the duty demanded where duty and penalty are in dispute. Accordingly, a mandatory pre-deposit would be payable in cases of demand of drawback as the new section 129E would apply to such cases, the CBEC says.

We are a small-scale unit. We do not pay any excise duty, as our turnover is less than Rs 1.5 crores. We exported our goods but did not take any benefits like EPCG authorisation or advance authorisation or duty drawback or Focus Product/Market scheme, etc. The goods we exported have been rejected by the buyer on quality grounds. We want to re-import the goods. Do we have to pay any duty?

If you have not taken any benefit, you can re-import the goods without payment of duty under S.No. 3 of notification 94/96-Cus dated December 16, 1996. But, you must fulfil the other conditions given in the notification, such as establishing the identity of the re-imported goods as the same as those exported, re-importing within the time limit given in the notification, etc.

As per Para 4.27 of the Foreign Trade Policy, Duty Free Import Authorisation (DFIA) shall be issued on post export basis for products for which Standard Input Output Norms have been notified. What is the procedure to apply for DFIA after export? What documents should be submitted for issuance of DFIA?

In fact, you have to apply for DFIA (ANF 4G-Part A) before making any exports and obtain the file number before you start making exports or deemed exports. In the exports and deemed exports documents, you must mention the file number. You get 12 months to make exports. Thereafter, you must submit the prescribed form ANF 4G-Part B for issue of DFIA, along with the documents mentioned in the notes to the form ANF 4G-Part B.

We are manufacturers. We have unutilised credit balance of education cess and secondary higher education cess. We are unable to utilise the same due to exemption of the above cess since March 1, 2015. Can we utilise the same towards payment of excise duty?

No. There is no provision in Rule 3(7)(b) of Cenvat Credit Rules, 2004 to utilise the balance of credit of said cesses lying in your books as on February 28, 2015. However, you can utilise towards payment of excise duty the cesses paid on inputs or capital goods or input services received on or after March 1, 2015 and balance 50% of the cesses in respect of capital goods received in 20140-15 or earlier.

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