2019 (8) TMI 677

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....manufacturing of Heavy Commercial Vehicles and Chassis of Vehicles falling under Chapter sub heading 8704 and 8706 respectively, of the first schedule to Central Excise Tariff Act, 1985. The facts further reveal that during the disputed period i.e. 2008 to 2011, the respondent-Man Trucks India Pvt. Ltd., had cleared 86 Nos. of vehicles to EPCG licence holder, on the basis of invalidation letters issued in terms of Foreign Trade Policy (FTP) 2009-14. As per the foreign trade policy, certificate from EPCG authorisation holder and evidencing receipt of capital goods were also submitted to the excise authorities. The clearance of the vehicles under FTP without payment of duty was objected to by the Department on the ground that the supplies ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....olders of Authorisation under EPCG scheme shall be regarded as "Deemed Export" under FTP. Under Para No.8.3 of FTP benefits available on deemed export are described. Para No.8.3 of FTP is reproducing below:- "8.3 Deemed Export shall be eligible for any/all of following benefits in respects of manufacture and supply of goods qualifying as deemed exports. (a) Advance Authorization / Advance Authorization for annual requirement / DFIA. (b) Deemed Export Drawback. (c) Exemption from terminal excise duty where supplies are made against ICB (International Competitive Bidding). In other cases, refund of terminal excise duty will be given." 5. Further, Criteria for claiming deemed export benefits and pro....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xcise duty, procedure prescribed by central excise authority shall be followed. 6. In view of the foregoing paras, it appeared that supply of the Capital Goods to an EPCG License holder ont eh basis of invalidation Letter issued by the DGFT authority, will be eligible for deemed export benefit and goods so supplies will be exempted from Terminal Excise Duty, subject to such supplies made against International Competitive Bidding (ICB). In any other case supplier have to pay duty at the time of removal of goods. Subsequently, if assessee sought, he may get refund of the duty so paid from the DGFT Authority. DGFT authority may grant refund of Terminal Excise duty on application filed by the supplier in the prescribed format subject t....