Refund of excise duty

[Guest]

MEGA POWER PROJECTS (SAY NUCLEAR POWER PROJECTS)enjoy certain concessions. As per Import Export policy (1997-202)domestic contractors supplying goods for these projects under the process of comptetive bidding shall be eligible for benefits of 'Deemed Export' which include refund of terminal excise duty vide notifications no.42(RE-2001)1997-2002 dt.21.12.2001 and 57 (RE-01/1997-2002 dt.21.12.2001)issued by the DGFT. My query is whether a contractor who has supplied goods for construction of one such project at Rajasthan in 2004-05-06, can claim refund of excise duty charged to him by his suppliers on these goods in their bills. If yes, the procedure thereof.

[Madhukar N Hiregange]

yes it is possible. you may contact a good professional / consultant near you for details as too many issues are involved

[Surender Gupta]

As per the provisions of foreign trade policy in case of deemed export, certain export benefits are available like exemption from terminal excise duty etc. For this purpose all the circumstances and facts are to be analyzed in detail.

AI Summary

Deemed export benefits permit refund of terminal excise duty to contractors supplying mega power projects, subject to eligibility verification. Domestic contractors supplying goods to mega power projects under competitive bidding may qualify as deemed exports and thereby be eligible for refund or exemption of terminal excise duty, subject to satisfying policy conditions and procedural requirements; claimability requires case-specific factual analysis and supporting documentation.