The Synthetic & Rayon Textiles Export Promotion Council

Refund of Terminal Excise Duty(TED) under Deemed Exports where Duty has been paid from CENVAT Credit and ab-initio waiver is not availabe

Circular No.ES/111/ 2016-17                                                               September 27, 2016

To: Members of the Council

Sub: Refund of Terminal Excise Duty(TED) under Deemed Exports where Duty has been paid from CENVAT Credit and ab-initio waiver is not availabe

 Dear Member,

This is to inform you that the Directorate General of Foreign Trade has issued Trade Notice No.17/2016 dated 22.09.2016 on the above subject.

In this connection, Para 7.03 (c) of FTP 2015-20 provides for refund of TED if exemption is not available. The Para 7.05 (ii) of FTP 2015-20 states that supply of goods which are exempted ab-initio from payment of Terminal Excise Duty would be ineligible to get refund of TED.

In view of the above, DGFT examined the issue in consultation with Department of Revenue (DOR) and has 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.

For more information, you may refer to the above Trade Notice.

Members may kindly make note of the above.

Thanking you,

Yours faithfully,

V. ANIL KUMAR
EXECUTIVE DIRECTOR