I have recently had a case of TED refund rejected by DGFT but after going through the points and basis of rejection, it appears that the department is interpreting that CENVAT Credit and TED Refund are the same thing.
What is the actual difference between the two?
Misinterpretation of CENVAT Credit and TED Refund Leads to Confusion in DGFT Case Under Foreign Trade Policy Rules. A discussion on the difference between CENVAT Credit and Terminal Excise Duty (TED) Refund reveals confusion in a case where a TED refund was rejected by the Directorate General of Foreign Trade (DGFT). The DGFT interpreted CENVAT Credit and TED Refund as equivalent, leading to the rejection. Participants clarified that CENVAT Credit allows duty paid on inputs to be credited and not refunded, while TED Refund is a separate benefit under the Foreign Trade Policy (FTP) for duty paid on capital goods. The issue arose from misinterpretation of these terms and their application under specific FTP and CENVAT rules. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
