The Central Board of Indirect Taxes and Customs (CBIC), on Tuesday, issued an instruction on the incidence of National Calamity Contingent Duty (NCCD) for calculation of Brand Rate of duty drawback.
The incidents are elaborated in the Board’s Instruction No. 4/2019- Customs dated October 11, 2019, clarifying the position regarding Education Cess, Secondary and Higher Education Cess, Social Welfare Surcharge, Clean Environment Cess (erstwhile Clean Energy Cess) and Stowage Excise Duty levied on inputs used in the manufacture of export goods with regard to their incidence for the purpose of calculation of Brand Rate of duty drawback.
“The Board has received the representations seeking inclusion of the incidence of National Calamity Contingent Duty (NCCD) levied on the inputs used in the manufacture of export goods in the calculation of Brand Rate of duty drawback,” the circular said.
The Board examined the matter keeping in view the relevant statutory provisions, Customs and Central Excise Duties Drawback Rules, 2017, and Board’s Instruction No. 4/2019- Customs dated October 11, 2019.
NCCD is levied under Section 136 of Finance Act, 2001 as a duty of excise and under Section 134 of Finance Act, 2003 as a duty of customs. These legislations respectively inter-alia provide that provisions of Central Excise Act, 1944, Customs Act, 1962, and rules and regulations made thereunder including those relating to refunds, exemptions, etc. shall apply to this levy.
Section 75 of the Customs Act, 1962 allows the drawback of duties of customs chargeable under the Act. Section 12 of the said Act provides for levy of duties of customs at such rates as may be specified under the Customs Tariff Act, 1975 or any other law for the time being in force. NCCD is also taken into account in the calculation of All Industry Rates of duty drawback by the Drawback Committee.
“The incidence of NCCD where applicable is required to be factored in the calculation of Brand Rate of duty drawback,” the instructions further clarified.
The Board requested the Field formations to deal with applications for fixation of Brand Rate of duty drawback accordingly.
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