The Central Board of Indirect Taxes and Customs vide its notification dated 12th May 2020 has clarified that the incidence of National Calamity Contingent Duty (NCCD) where applicable, must be a factored in the calculation of Brand Rate of duty drawback.
The 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
Further 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.
Therefore, the incidence of NCCD where applicable is required to be factored in the calculation of Brand Rate of duty drawback.
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