DBK Circular No.10/2001-Cusdate 23rd February, 2001
Duty Drawback on Readymade Garments (Ghagra-Choli, Lehnga-Choli, etc.

Sub:      All Industry Rates of Drawback in respect of Readymade Garmentsfalling under SS No. 62.02 of the Drawback Table - regarding.

References have been receivedfrom the field formations seeking clarifications whether the drawback caps of Rs.65.00 per piece mentioned against SS No. 62.01 and of Rs. 39.00 per pieceindicated in SS No. 62.02 are applicable to a single piece of garment or theyare also applicable to sets/ensembles of garments. Such sets/ensembles beingGhagra-Choli, Lehnga-Choli, Suits (coat-pant), pant and shirt, ladies' suits (salwar-kameez),etc.

2. The issue has been examined. The applicability of drawback caps should bedecided taking into account the normal commercial practice of marketing, packingand invoicing, i.e., whether the goods like Lehnga-Choli, Skirt-Blouse, etc. arebeing sold as one unit of ready-made garment at one price or these areindividual components and being asked for buyers as separate pieces of garmentsand invoices issued separately (or prices shown separately on the same invoice).If the garments though in sets are treated as individual components and billedand packed individually then the drawback cap may be applied to each such singlepiece of garment. However, where the garments though in ensembles, viz.Ghagra-Choli, Choli-Lehnga, etc., are sold and marketed at one price as singleunit of garment, drawback caps of Rs. 65.00 and Rs. 39.00 would be applicable tocomplete sets/ensembles.

3. All past cases may be reviewed in the light of above and recoveries maykindly be effected wherever necessary.

4. Suitable Public Notice for information of the trade and standing ordersfor guidance of the staff may kindly be issued on the above items.

5. Receipt of the Circular may please be acknowledge.

Sd/- 
(S.S. Renjhen)
Joint Secretary to the Government of India