Reimbursement of Secondary and higher education cess paid on excise duty/terminal excise duty in case of supplies made under deemed exports

Reimbursement of Education Cess on Excise Duty for Deemed Exports Confirmed for Claims Before April 11, 2008.

The circular from the Directorate General of Foreign Trade addresses the reimbursement of Secondary and Higher Education cess paid on excise duty for supplies classified as deemed exports. Initially clarified in 2005, the policy allows for refunds of education cess under certain conditions. Following the introduction of the Secondary and Higher Education cess in 2007, further clarification was issued in 2008, confirming that cess paid alongside excise duty is refundable. Recent representations indicated confusion regarding the retroactive applicability of this clarification. The circular confirms that claims for cess refunds filed before April 11, 2008, are eligible for reimbursement.