Terminal Excise Duty Refund

Criteria for claiming Benefits 

  • (i) In respect of supply of intermediate goods to Advance Authorisation / DFIA holder, against Invalidation Letter, issued in terms of Paragraph 4.13 of HBP, application to obtain Advance Authorisation for import of duty free inputs, as provided under chapter 4 of FTP 2015-20, shall be made as per procedures given in Chapter 4 of HBP. For supplies against invalidation letter, Terminal Excise Duty refund shall be given in accordance with para 7.03(c) of FTP 2015-20, provided, there is no exemption.

(ii) In respect of supply of goods to Advance Authorization / DFIA, against ARO, procedure given in Chapter 4 of the HBP shall be followed. Terminal Excise Duty refund for supplies against ARO shall be allowed in accordance with para 7.03(c) of FTP 2015-20, provided, there is no exemption. Duty Drawback shall be allowed on basic custom  duty paid on inputs used in such supplies.

  • In respect of supply of goods to EOU / EHTP / STP / BTP, Advance Authorization / DFIA can be obtained as per procedure given in the Chapter 4 of HBP for exemption from payment of Terminal Excise Duty, procedure as per Excise Circular number 851/9/2007-CX dated 3.5.2007 read with circular No. 10/2009-Cus dated 25.2.2009, shall  be followed for removal of goods against CT-3. Terminal Excise Duty Refund shall be given for supply of goods to EOU / EHTP / STP / BTP in accordance with para 7.03(c) of FTP  2015-20, provided,  there is  no exemption. In case Advance Authorization, as provided in chapter 4 of FTP 2015- 20, is not obtained for import of duty free inputs against such supply, drawback claim for basic custom duty paid on inputs, used in the resultant product, shall be filed with the DC concerned. A DTA Unit shall claim benefits from the concerned RA.
  • In respect of supply of goods to an EPCG Authorization holder,  against Invalidation Letter, application for Advance Authorization / DFIA shall be made as per procedures given in Chapter 4 of HBP. If Advance Authorization / DFIA is not obtained for duty free inputs, Duty drawback shall be allowed on basic custom duty paid on inputs used in the resultant
  • In respect of supply of goods to other categories as listed in the Paragraph 7.02 (e), (f), (g) & (h) of FTP, Advance Authorization / DFIA for import of duty free inputs as provided under chapter 4 of FTP 2015-20 may be obtained against Project Authority Certificate as per Appendix- 7C. However, if Advance Authorization / DFIA is not obtained against such supplies for duty free inputs as provided in chapter 4 of FTP 2015-20, claim for duty drawback for basic custom duty may be filed as per ANF-7A. Terminal Excise Duty refund for projects mentioned in para 7.08(iii)(a) of FTP 2015-20 in respect of eligible items of supply covered under schedule IV of Central  Excise Act, 1944, shall  be available provided there is no

Eligibility criteria for claiming TED / Drawback

 Application can be filed either by supplier or by recipient of goods, having IEC Number.

  • Application can be made by Registered office / Head office / Branch office or Manufacturing.
  • In case supplier files claim for Terminal excise Duty Refund, it shall obtain a certificate for non-availment of CENVAT credit from the recipient of goods as per Annexure – I to ANF-7A and submit the same. In case recipient of goods is an applicant, then the applicant itself shall submit such certificate.
  • In case recipient unit files claim for Terminal Excise Duty/ Duty Drawback, disclaimer certificate as prescribed in the Annexure-III to ANF- 7A shall be obtained from supplier and shall be submitted along with the application. In case supplier of the goods is an applicant then the disclaimer certificate from the recipient of the goods shall be submitted.
  • Claim can be filed only after payment is received in full, to the extent of supplies.
  • Claim can be filed against payment received through normal banking channel, as per e-BRC. In other words, supply documents have to be negotiated through bank only. In respect of supplies covered under Paragraph 7.02 (e) to (h) of the FTP 2015-20, payment certificate issued by Project Authority, in APPENDIX-7D, has also to be submitted.
  • Sub-contractor can also file claim provided its name is endorsed in the Project Authority Certificate / Contract before supply of such goods.
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