CUSTOMS LAW MADE EASY SERIES - DIFFERENCE BETWEEN DRAWBACK AND REFUND UNDER CUSTOMS ACT 1962

SL	DRAWBACK	REFUND
1	Drawback is a covered under section 74, 74(1)	Refunds are covered by Sec 26 & 27  of CA 62
	74(2) and Sec 75 of Customs Act 62
2	Under Sec 74(1) of CA 62, DBK of duty is paid	Export duty paid in certain cases, refund is
	on import duty paid amount for unused goods which	allowed subject to the fulfilment of the three
	are exported back with in two years of  payment	conditions specified in Sec 26.
	of duty is allowed at 98% of the total duty
	subject to establishing the identity of
	the said goods by AC/DC
2a.	Under Sec 74(2) of CA 62,   DBK of duty is paid	Sec 27 Refund is applicable to export duty or
	on the import duty paid for used (taken for use)	import duty paid in excess for any reason
	goods which are exported back within 18 months	(classification, valuation errors  in calculation,
	at a graded % specified in the table to	change rate etc..)
	Notification 19/1965 as amended 23/2008
	subject to establishing the identity of
	goods AC/DC .
2c.	Under Sec 75 of CA 1962 on the goods
	manufactured in India out of the
	import duty paid inputs and / or the  C.E.
	duty paid inputs and / or by export related
	services, drawback on the such manufactured
	goods when exported DBK is paid under the
	related provisions of  95/2018 dt.06.12.18
	Customs and Central Excise Duties Drawback Rules, 2017
3	Concept of Unjust Enrichment specified in Sec 27(2) of the	Concept of UJE will be applicable to sec 27 of
	CA 1962 will not be applicable.	CA 62 (Sec 27(2) of CA 62 )
		however is not applicable to sec 26 Refund
		which is specified  in section 27(2) of CA 62.