Difference between Cenvat credit and TED refund

[Asked by Guest]

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?

AI Summary

Cenvat credit treats input duty as refunded via credit, barring a terminal excise duty refund claim if credit was availed.
Cenvat credit restores excise duty on inputs, capital goods and input services by granting a usable credit; once Cenvat credit is availed for a given duty, a separate Terminal Excise Duty refund for that duty cannot be claimed. For TED refund claims, authorities must confirm the recipient has not taken Cenvat credit; if the recipient seeks refund, the supplier must provide a disclaimer certificate with invoices confirming duty paid and consenting to the recipient's refund claim. The Cenvat scheme ensures input tax neutrality and prevents tax-on-tax.