Terminal Excise Duty REFUND



Deemed exports shall be eligible for any / all of following benefits:
  • Advance Authorisation / Advance Authorisation for annual requirement / DFIA.
  • Deemed Export Drawback.
  • Refund of terminal excise duty.
The following Supplies are Eligibile for Refund of Terminal Excise Duty:
  • Supplies against A.R.O. issued against Advance Authorisation (AA) / AA for Annual Requirement / DFIA.
  • Supplies of Goods to EOU / EHTP / STP / BTP.
  • Supplies of Capital Goods to EPCG Authorisation Holders.
  • Supply of goods to projects financed by multilateral or bilateral Agencies / Funds as notified by Department of Economic Affairs (DEA), MoF under International Competitive Bidding (ICB) in accordance with procedures of those Agencies / Funds, where legal agreements provide for tender evaluation without including customs duty,

    Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies / Funds as notified by DEA, MoF under ICB, in accordance with procedures of those Agencies / Funds, which bids may have been invited and evaluated on the basis of Delivered Duty Paid (DDP) prices for goods manufactured abroad.
  • Supply of goods to any project or purpose in respect of which the MoF, by a notification, permits import of such goods at zero customs duty.
  • Supply of goods to power projects and refineries not covered above.
Note:
  • Supply of goods will be eligible for refund of Terminal Excise Duty provided recipient of goods does not avail CENVAT credit / rebate on such goods.
  • Simple interest @ 6% per annum will be payable on delay in refund of Terminal Excise Duty.
  • Recipient may also claim benefits on production of a suitable disclaimer from supplier.
  • In case of supplies against ARO, EOU,STP,EHTP,BTP & EPCG, claim shall be filed against receipt of payment (Appendix 22B).
  • Claims should be filed within a period of twelve months from the date of payment.
  • In cases where payment is received in advance, Last date for submission of application may be correlated with date of supply instead of date of receipt of payment.
  • Claim can be filed 'Invalidation Letter / ARO wise' against individual authorisations within the time limit as specified above.
  • 100% TED refund may be allowed after 100% supplies have been made physically and payment received at least up to 90%.
  • Claims may also be filed where part payments have been received.
  • For supply of High Speed Diesel / Furnace Oil from Depots of domestic oil Public Sector Undertakings for supplies to EOU/STP/EHTP/BTP, terminal excise duty shall be refunded on the basis of duty paid certificate issued by concerned domestic oil Public Sector Undertaking.
  • (Duty refund will be allowed for quantity of HSD / Furnace oil procured by EOU / EHTP / STP / BTP unit for its production activities, as certified by concerned DC / Bond authorities.)
  • In respect of supplies under categories as given above in sr.no. 4,5,6 above, claim may be filed either on the basis of proof of supplies effected or payment received.
  • Claims should be filed within a period of twelve months from date of receipt of supplies by project authority or from date of receipt of the payment as per the option of applicant, either against a particular project or all the projects.