Page 31 - ELT_15th August 2020_Vol 373_Part 4

NCCD IN FIXATION OF BRAND RATE
DUTY AND DRAWBACK

By
Samir Kumar Sinha, M.Sc. (Math.)
APPRAISER (RETD.)

The Central Board of Indirect Taxes and Customs
(C.B.I. & C.) has clarified vide Instruction No. 5/2020-
Cus., dated 12-5-2020 [2020 (372) E.L.T. (T18)] that the in-
cidence of National Calamity Contingent Duty (NCCD),
where applicable, is required to be factored into the calcu-
lation of Brand Rate of Duty Drawback under the provisions of the Customs and
Central Excise Duties Drawback Rules, 2017. This has raised the question of the
nature of NCCD which is liable to be factored in for fixing brand rate.
As specified in para 3 of the said instruction, NCCD is levied under Sec-
tion 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 the Central Excise Act, 1944 and Customs Act, 1962 and rules
and regulations made thereunder including those relating to refunds, exemp-
tions etc., shall apply to this levy. Section 75 of Customs Act, 1962 allows draw-
back 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.
It is submitted that the levy of NCCD of Excise is applicable on the speci-
fied goods which are produced/manufactured in India. In the case of the speci-
fied imported goods, NCCD of Excise, which is leviable on the said goods under
Section 136(1) of Finance Act, 2001 as amended, is exempted vide Notification

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