| Date: |
22-09-2016
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| Notification No: |
Trade Notice No. 17/2016
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| Issuing Authority: |
DGFT
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| Type: |
Trade Notice
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| File No: |
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| Subject: |
Refund of Terminal Excise Duty(TED) under Deemed Exports where Duty has been paid from CENVAT Credit and ab-initio waiver is not availabe.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Trade Notice No. 17/2016
Date : 22nd Sep. 2016
To
All Regional Authorities
Members of Trade
Sub: Refund of Terminal Excise Duty (TED) under Deemed Exports where Duty has
been paid from CENVAT Credit and ab-initio waiver is not available.
Sir,
The Para 7.03 (c) of FTP 2015-20 provides for refund of Terminal Excise Duty if
exemption is not available. The Para 7.05 (ii) of FTP 2015-20states that supply
of goods which are exempted ab-initio from payment of Terminal Excise Duty would
be ineligible to get refund of TED.
2. The
Policy Circular No. 16 (RE-2012/2009-14) dated 15.3.2013 also while
specifying the categories where ab-initio exemption is there, specified that 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.
3. Even though there was ab-initio exemption from payment of TED for supplies to
EOUs, some firms were trying to get refund of TED, paid in many cases with
accumulated CENVAT credit. This amounted to encashment of the accumulated CENVAT
credit by way of TED refund under deemed exports, wherein no TED was required to
be paid in the first instance.
4. This lead to a certain position being taken also regarding the refund of TED
in deemed export cases where no such ab initio waiver existed and the duty had
been paid using the CENVAT credit, on grounds related to the permissibility of
refunds of TED paid through CENVAT Credit. Some RAs had also denied the refund
of TED in such cases. There were representations from trade and industry on this
arguing that they have all along been getting such refunds.
5. In light of representations, the issue has been examined in consultation with
Department of Revenue and it is accordingly clarified that the refund of TED as
per FTP, subject to all other conditions, shall continue to be available where
the ab-initio exemption was not provided and duty had been paid using CENVAT
credit. However DOR has advised that necessary safeguards should be adopted to
ensure that the TED is not already claimed (or shall not be otherwise claimed)
as refund in any other manner, such as area based exemptions.
6. It is reiterated that no refund of TED shall be allowed where ab-initio
exemption was there, as already specified in the FTP.
This issues with the approval of DGFT.
(S. SUDHA)
Dy. Director General of Foreign Trade
Tel. 23061562/232 (Ext.)
Email. [email protected]
(Issued from file number -01/92/180/26/AM-17/PC-V1)
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