Terminal Excise Duty refund on deemed exports must be pursued under the Foreign Trade Policy, not before Central Excise authorities.

Refund or re-credit of Terminal Excise Duty on deemed export supplies to 100% EOUs was held not maintainable before Central Excise authorities because the Foreign Trade Policy provided the governing refund mechanism. The authorities were therefore right to reject the claim, as the proper forum for such refund relief lay with the DGFT under the policy framework, not with Central Excise. The impugned order was sustained and the appeal failed.

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Issues: Whether the appellant's claim for refund or re-credit of Terminal Excise Duty paid on supplies to 100% EOUs was maintainable before the Central Excise authorities.

Analysis: The supplies were treated as deemed exports under the Foreign Trade Policy, and the refund mechanism for Terminal Excise Duty was governed by that policy framework. The controversy had already been considered by High Courts, which held that such refund claims were required to be pursued before the DGFT and not before the Central Excise authorities. In light of that position, the claim presented before the Central Excise authorities could not be entertained.

Conclusion: The refund claim and request for re-credit before the Central Excise authorities were not maintainable and were rightly rejected.

Final Conclusion: The impugned order was sustained and the appeal failed.

Ratio Decidendi: Where the Foreign Trade Policy provides the mechanism for refund of Terminal Excise Duty on deemed export supplies, the claim is maintainable only before the DGFT and not before the Central Excise authorities.

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