AI Drafter 
TaxTMI 
TaxTMI 
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 18th 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.”
| 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)
