Page 178 - GSTL_11th June 2020_Vol 37_Part 2

264 GST LAW TIMES [ Vol. 37
ers can also claim Brand rate of duty/tax incidence as they have
been doing earlier. The conditions imposed for claiming these com-
posite rates aim to ensure that the exporters do not claim composite
AIRs of duty drawback and simultaneously avail input tax credit of
Central Goods and Services Tax (CGST) or Integrated Goods and
Services Tax (IGST) on the export goods or on inputs and input ser-
vices used in manufacture of export goods or claim refund of IGST
paid on export goods. Further, an exporter claiming composite rate
shall also be barred to carry forward Cenvat credit on the export
goods or on inputs or input services used in manufacture of export
goods in terms of the CGST Act, 2017. The exporters have to give a
declaration and certificates as prescribed in this Notification at the
time of export. Similar checks shall apply while determining the
Brand rate of drawback. While a transition period of three months
has been allowed, the exporters shall have an option to claim only
Customs portion of AIRs of duty drawback i.e. rates and caps given
under column (6) and (7) respectively of the Schedule of AIRs of du-
ty drawback and avail input tax credit of CGST or IGST or refund
of IGST paid on exports.
(v) That further the Notification No. 131/2016-Cus. (N.T.), dated 31-10-
2016 which provides for the rates of drawback along with certain
notes and conditions. One such condition states that if the rate of
drawback in Column A & Column B is same, then the same pertains to on-
ly customs component and is available irrespective whether the exporter
avails the cenvat credit or not. That a copy of the same is also pro-
duced below for your reference.
(vi) That there is no dispute in the fact that the goods being exported by
the appellant falls under Tariff Code 6914 under the schedule
against which the rates of drawback under Columns A & B is 1.5%.
From the perusal of the above, it is ample clear that when the rates
of drawback are same i.e. in this case 1.5%, then the rate pertains to
customs component only and not towards the central excise and
service tax component. That a copy of the drawback rate prescribed
in the aforesaid notification is reproduced below :

6910 Ceramic sinks, wash basins, wash 1.5% 1.5%
basin pedestals, baths, bidets, water
closet pans, flushing cisterns, urinals
and similar sanitary fixtures
6911 Tableware, kitchenware, other house- 1.5% 1.5%
hold articles and toilet articles, of
porcelain or china
6912 Ceramic tableware, kitchenware, oth- 1.5% 1.5%
er household articles and toilet arti-
cles, other than of porcelain or china
6913 Statuettes and other ornamental ce- 1.5% 1.5%
ramic articles
6914 Other ceramic articles 1.5% 1.5%

(vii) That from the above, it is amply clear that the appellant has claimed
drawback of custom component only and has rightly availed ITC in
respect of the good exported and therefore the refund is admissible
and cannot be rejected on account of incorrect allegation of claiming
higher rate of drawback.
GST LAW TIMES  11th June 2020  178