 "Odd decisions and the consequences")
The commerce ministry has restored the benefit of duty drawback at All Industry Rates (AIR) to deemed export, with retrospective effect from December 5, 2017. A welcome development but it raises some questions.
Deemed export refers to supplies within India of goods made in India for specified purposes or to specified entities.
The objective is a level playing field for domestic manufacturers in specified cases. For example, an export oriented unit may import its requirements duty-free.
A domestic manufacturer can compete with such duty-free imports if relieved of the tax/duty burden on inputs and finished products. So, the deemed export provisions, besides other
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