Page 61 - ELT_15th May 2020_VOL 372_Part 4th

2020 ] DEPARTMENTAL CLARIFICATIONS T19

provisions, Customs and Central Excise Duties Drawback Rules, 2017 and
Board’s Instruction No. 4/2019-Customs, dated 11-10-2019. 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 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.
3.1 It is, therefore, clarified that the incidence of NCCD where
applicable, is required to be factored in calculation of Brand Rate of duty
drawback.
4. Field formations are requested to deal with applications for fixation
of Brand Rate of duty drawback accordingly.
5. A suitable Trade Notice and Standing Order may be issued for the
guidance of the trade and staff. Difficulties faced, if any, in implementation of the
instruction may be immediately brought to the notice of the Board. Hindi version
shall follow.
[M.F. (D.R.) Instruction No. 5/2020-Cus., dated 12-5-2020]
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EXCISE LAW TIMES  15th May 2020  61