Goverment of Inia Minis of Commerce Indy Department of Commerce Directorate Genera of Frcign Trade Udyog Bhawan, New Deli ‘Trade Notice No 172016 Due: 22nd sep 2010 To All Regional Authorities Members of Trade ‘Sub: _ Refund of Teominal Excise Duty (TED) under Deemed Exports where Duty has been paid fom CENVAT Credit andab-nito waver isnot availabe Si The Para 703 (@) of ETP 2015-20 provides for refund of Terminal Excise Duty if cxemption isnot avalble. The Para 7.05 i) of FTP 2015-20 that supply of goods which rc cacmied ant fom payment of Terminal Excise Duty woul be ineligible 0 get rind ot TED. 2 The Policy Creu No. 16 (RE-201272009-14) dated 153.2013 also while specifying the categories where ab-initio exemption is there, specified thit no refund of TED should be provided by RAS of DGFTIOMTce of Development Commissioners, because such supplies are b.nito exempted fom payment of excise dt. 3. Eventhough there as avin exemption from payment of TED for supplies to EOUs, some fis were trying to get refund of TED, pad in many cases with accumullted CENVAT roi. This amounted to encashmont ofthe accumulated CENVAT credit by way of TED rend under deemed expots, wherein no TED was requited to be pid in the fs instance.4. This lead to cerisin position being taken also regarding the refund of TED in deemed export cases where no sich ab initio waiver existed and the duty had teen paid using the CENVAT credit, on grounds related t0 the permisibility of refunds of TED paid though CENVAT Credit. Some RAS had also denied the refund of TED in such cases. There were representations from trade and industry on this arguing tha they have al along been geting such eit 5. Inligh of representations the issue has been examined in consultation with Department of| Revenue and it is accordingly clarified thatthe refund of TED as per FTP, subject tall other conditions, shall continue tobe avilable where the ab-ntio exemption was not provided and uty had been pid using CENVATT credit. However DOR has advised that necessary safeguards should be adopted to ensure that the TED isnot already claimed (or shall not be otherwise limes) as refund in any other manne, suc as area based exemptions. 6, isreterted that no refund of TED shall be allowed where ab-intio exemption was there, as already specified inthe FTP. ‘This iesves withthe approval of DGFT, defeat (8. SUDHA) Dy, Director General of Foreign Trade “Tel. 23061562232 (Ext) Email. ssthe28dniein (ss fom fle number 01/92/1$02/AM-17/PC-V1)