law: Custom Act, 1962 
  75.
  
  Drawback on Imported Materials Used in the Manufacture of Goods which are Exported.
  (1)
  
  Where it appears to the Central Government that in respect of goods of any
  
  class or description - manufactured, processed or on which any operation has
  
  been carried out in India, being goods which have been entered for export and
  
  in respect of which an order permitting the clearance and loading thereof for
  
  exportation has been made under section 51 by the proper officer, or being
  
  goods entered for export by post under section 82 and in respect of which an
  
  order permitting clearance for exportation has been made by the proper officer,
  
  a drawback should be allowed of duties of customs chargeable under this Act on
  
  any imported materials of a class or description used in the manufacture or
  
  processing of such goods or carrying out any operation on such goods, the
  
  Central Government may, by notification in the Official Gazette, direct that
  
  drawback shall be allowed in respect of such goods in accordance with, and
  
  subject to, the rules made under sub-section (2).
  Provided
  
    that no drawback shall be allowed under
  
  this sub-section in respect of any of the aforesaid goods which the Central
  
  Government may, by rules made under sub-section (2), specify, if the export
  
  value of such goods or class of goods is less than the value of the imported
  
  materials used in the manufacture or processing of such goods or carrying out
  
  any operation on such goods or class of goods, or is not more than such
  
  percentage of the value of the imported materials used in the manufacture or
  
  processing of such goods or carrying out any operation on such goods or class
  
  of goods as the Central Government may, by notification in the Official
  
  Gazette, specify in this behalf :
  Provided
  
    further that where any drawback has been
  
  allowed on any goods under this sub-section and the sale proceeds in respect of
  
  such goods are not received by or on behalf of the exporter in India within the
  
  time allowed under the Foreign Exchange Regulation Act, 1973 (46 of 1973), such
  
  drawback shall be deemed never to have been allowed and the Central Government
  
  may, by rules made under sub-section (2), specify the procedure for the
  
  recovery or adjustment of the amount of such drawback. ;
  (1A)
  
  Where it appears to the Central Government that the quantity of a particular
  
  material imported into India is more than the total quantity of like material that
  
  has been used in the goods manufactured, processed or on which any operation
  
  has been carried out in India and exported outside India, then, the Central
  
  Government may, by notification in the Official Gazette, declare that so much
  
  of the material as is contained in the goods exported shall, for the purpose of
  
  sub-section (1), be deemed to be imported material.
  (2)
  
  The Central Government may make rules for the purpose of carrying out the
  
  provisions of sub-section (1) and, in particular, such rules may provide –
  (a) for the payment of drawback equal to the amount of duty actually
  
  paid on the imported materials used in the manufacture or processing of the
  
  goods or carrying out any operation on the goods or as is specified in the
  
  rules as the average amount of duty paid on the materials of that class or
  
  description used in the manufacture or processing of export goods or carrying
  
  out any operation on export goods of that class or description either by
  
  manufacturers generally or by persons processing or carrying on any operation
  
  generally or by any particular manufacturer or particular person carrying on
  
  any process or other operation, and interest if any payable thereon;
  ( aa ) for specifying the goods in respect of
  
  which no drawback shall be allowed;
  ( ab ) for specifying the procedure for recovery
  
  or adjustment of the amount of any drawback which had been allowed under
  
  sub-section (1) or interest chargeable thereon;
  (b) for the production of such certificates, documents and other
  
  evidence in support of each claim of drawback as may be necessary;
  (c) for requiring the manufacturer or the person carrying on any process
  
  or other operation to give access to every part of his manufactory to any
  
  officer of customs specially authorised in this behalf by the Assistant
  
  Commissioner of Customs to enable such authorised officer to inspect the
  
  processes of manufacture, process or any other operation carried out and to
  
  verify by actual check or otherwise the statements made in support of the claim
  
  for drawback.
  (d) for the manner and the time within which the claim for payment of
  
  drawback may be filed;
  (3)
  
  The power to make rules conferred by sub-section (2) shall include the power to
  
  give drawback with retrospective effect from a date not earlier than the date of
  
  changes in the rates of duty on inputs used in the export goods.