EXCISE EXEMPTION-DGFT

[HITENDRA DAVE]

We are going to supply  Under Noti.No.21/2002-Custom dated 01.03.2002  supplying to the above Nuclear Power Project are entitled for the Demed Export Benefits given in Para 8.3(a), (b) and (c) applicable for the Foreign Trade Policy  2009-2014 based on Project Authority  Certificate

(a) My question  is   Excise duty fully exmpted  or not?  and no need to reverse 6%

(b) If applicable how can we get Refund  from DGFT?  Whether can we show the Excise duty in Invoice.

AI Summary

Excise exemption: deemed exports can avoid cenvat reversal and permit refund under trade policy provisions.
Rule 6 of the Cenvat Credit Rules lists exceptions where reversal is not applicable, including clearances to SEZs, 100% EOUs, supplies to international organisations or funded projects, export under bond, and supplies of customs-exempt goods against competitive bidding or to specified power projects; if eligible under these categories, reversal under Rule 6 is unnecessary. Notification No.21/2002-Cus was superseded by Notification No.12/2012-Cus, Project Authority Certificate is not a proper basis for excise exemption, and excise exemption must be claimed under a Section 5A notification. Deemed export classification under the FTP permits refund of Terminal Excise and avoids cenvat reversal.