Government of India
Ministry of Commerce and Industry
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Policy Circular No. 16 (RE-2012/2009-14)
Dated: 15th March, 2013
To,
All Regional Authorities
All Development Commissioners, SEZ.
Subject : Clarification regarding TED Refund where TED exemption is available.
It has come to the notice of this Directorate that some RAs of DGFT and the
Offices of Development Commissioners of SEZ are providing refund of TED even in
those cases where supplies of goods, under deemed exports, is ab-initio
exempted.
- There are three categories of supplies where supply of goods, under deemed
exports, are ab- initio exempted from payment of excise duties. These are as
follows:
- Supply of goods under Invalidation letter issued against Advance Authorisation [Para 8.3© of FTP];
- Supply of goods under ICB [Para 8.3(c) of FTP]; and
- Supply of goods to EOUs [Para 6.11(c) (ii) of FTP]
- Prudent financial management and adherence to discipline of budget would be
compromised if refund is provided, in cases, where exemption is mandated. In
fact, in such cases the relevant taxes should not have been collected to begin
with. And if, there has been an error/oversight committed, then the agency
collecting the tax would refund it, rather than seeking reimbursement from
another agency. Accordingly, it is clarified that in respect of supplies, as
stated at Para 2 above, no refund of TED should be provided by RAs of
DGFT/Office of Development Commissioners, because such supplies are ab-initio
exempted from payment of excise duty.
- This issue with the approval of DGFT.
(Jay Karan Singh)
Joint Director of Foreign Trade
Telphone No.23063249
E-mail: jaykaran.singh@nic.in
(Issued from File No.01/92/180/41/AM-09/PC-VI)