TED on Diesel

[P S SATYA NARAYANA]

 

Dear Sir,

We have an EOU, buys Deisel (HSD) from one of the Oil Companies.  We reaise TED refund claim on Development Commissioner.

However, as per Notification No.4 (RE -2013)/2009-14 dt.18.4.2013 , payment of TED is exempt on supplies made to EOU as per ammended para No.8.3 (c) ( appended below for ready reference)

In this connection please advise me whether we can stop making TED on Diesel purchase to the Oil Company.  If so, what is the procedure to be followed - a mere letter addressed to the Oil Company requesting them not to charge TED and enclose therein the above Notification.  Based on which whether Oil Company will stop charging TED.  Or is there any other procedure we should comply to avail this benefit.

regards

PS SATYANARAYANA

 

To be published in the Gazette of India Extraordinary

Part II, Section 3, Sub-Section (II) 

Government of India

Ministry of Commerce and Industry

Department of Commerce

Udyog Bhawan 

Notification No. 4 (RE-2013) /2009-2014

New Delhi, the    18^th  April, 2013 

Subject:         Amendments in Paragraph 8.3 (c) and Paragraph 8.4 of the FTP pertaining to deemed exports scheme- Regarding.

S.O (E) :        In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, as amended,  read with paragraph 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the following amendments in Foreign Trade Policy, 2009-2014.

 2.         The existing paragraphs 8.3 (c) and 8.4 in the FTP are substituted by amended paragraphs 8.3(c) and 8.4 as given below:

(i)         Existing Paragraph 8.3 (c)

“Exemption from terminal excise duty where supplies are made against ICB. In other cases, refund of terminal excise duty will be given. Exemption from TED shall also be available for supplies made by an Advance Authorisation holder to a manufacturer holding another Advance Authorisation if such manufacturer, in turn, supplies the product(s) to an ultimate exporter.”

Amended Paragraph 8.3 (c)

“Refund of terminal excise duty will be given if exemption is not available. Exemption from TED is available to the following categories of supplies:

(i)                 Supplies against ICB;

(ii)               Supplies of intermediate goods, against invalidation letter, made by an Advance Authorisation holder to another Advance Authorisation holder; and

(iii)             Supplies of goods by DTA unit to EOU / EHTP / STP / BTP unit

Thus such categories of supply which are exempt ab initio will not be eligible to receive refund of TED”.          

(ii)        Existing Paragraph 8.4

            “Following table shows the benefits available to different categories of supplies as mentioned in Para 8.2 above.  In respect of such supplies supplier shall be entitled to the benefits listed in paragraphs 8.3 (a), (b) & (c) of the Policy, whichever is applicable.”

Relevant sub-para of 8.2	Benefit available as given in Para 8.3, whichever is applicable
	(a)	(b)	(c)
(a)	Yes (for intermediate supplies)	Yes (against ARO or Back to Back letter of credit)	Yes (Against ARO or Back to Back letter of Credit)
(b)	Yes	Yes	Yes
(c)	Yes	Yes	Yes
(d)	Yes	Yes	Yes
(f)	Yes	Yes	Yes
(h)	No	Yes	Yes
(i)	Yes	Yes	No
(j)	Yes	Yes	Yes

 

 

           Amended Paragraph 8.4

“Following table shows the benefits available to different categories of supplies as mentioned in Para 8.2 above.  In respect of such supplies supplier shall be entitled to the benefits listed in paragraphs 8.3 (a), (b) & (c) of the Policy, whichever is applicable.”

Relevant sub-para of 8.2	Benefit available as given in Para 8.3, whichever is applicable
	(a)	(b)	(c)
(a)	Yes (for intermediate supplies against an invalidation letter)	Yes (against ARO or Back to Back letter of credit)	(i)     Exemption in case of invalidation (ii)    Refund in case of ARO or back to back letter of credit
(b)	Yes	Yes	Exemption
(c)	Yes	Yes	Refund
(d)	Yes	Yes	Exemption
(f)	Yes	Yes	(i)     Exemption (ii)   Exemption, if ICB.       Refund, if without ICB.
(h)	No	Yes	Refund
(i)	Yes	Yes	No
(j)	Yes	Yes	Refund

 

 

3.   Effect of this amendment:

When ab initio exemption is available, benefit of TED refund will not be given.

 

 

(Anup K. Pujari)

Director General of Foreign Trade

E-mail: dgft at the rate of nic.in

 

(Issued from F.No. 01/92/180/251/AM-13/PC-VI)

 

AI Summary

Inquiry on Stopping Terminal Excise Duty on Diesel for EOUs Citing Exemption Notification by Ministry of Commerce. An individual from an Export Oriented Unit (EOU) inquired about the procedure to stop paying Terminal Excise Duty (TED) on diesel purchases from an oil company, referencing a notification that exempts such payments for supplies to EOUs. The notification, issued by the Ministry of Commerce and Industry, amends the Foreign Trade Policy to exempt certain categories from TED, eliminating the refund option if exemption applies. The individual seeks guidance on whether a letter to the oil company, citing the notification, suffices to stop TED charges or if additional steps are necessary. A respondent asked if the issue was resolved.