REFUND OF TERMINAL EXCISE DUTY
(1) PROCUREMENT OF CAPITAL GOODS UNDER EPCG SCHEME FROM INDIGENOUS SOURCES AND
(2) SUPPLY UNDER DEEMED EXPORTS.
In terms of para 5.6 of FTP, the EPCG Authorisation holder may source the capital goods from domestic sources instead of importing them. In this case, the supplier of capital goods will charge the excise duty at the time of supply of capital goods which is refundable either to the EPCG Authorisation holder or to the supplier. The EPCG authorisation holder can also take the CENVAT if he does not want to avail of the exemption. However, this provision of refund is beneficial to those EPCG Authorisation holder whose final products are exempt and cannot avail CENVAT.
If you supply to the Project Authority which are not covered under the International Competitive Bidding then there is a provision to get the refund of excise duty. The recipient may also claim the benefit on production of suitable disclaimer from the supplier along with necessary documents.
The refund of Terminal Excise Duty in terms of para 8.3(c) will be available from the Regional Authority by filing an application in ANF-8 form within twelve months from the date of payment.
SUPPLIES ELIGIBLE FOR REFUND :
The following supplies are considered for refund of Excise.
1) Supply to EOU/EHTP/STP/BTP.
2) Supply of goods to projects financed by multilateral agencies under the International Competitive Bidding in terms of para 8.2(d)
3) Supply of goods to any project or purpose in respect of which the Ministry of Finance by a notification permits the import of such goods at zero customs duty.
4) Supply of goods to power projects and refineries not covered in 3 above.
5) Supply of goods to nuclear power projects through competitive bidding as opposed to I.C.B.
6) Supply of C. G. to EPCG Authorisation holder against invalidation authorisation issued by R. A.
7) In case of intermediate supplies, Excise Duty is exempted.
The supplier is also entitled to obtain advance authorisation under Deemed Exports benefits for inputs used in the capital goods supplied under the EPCG authorisation holder. The procedure for filing an application is similar to the one described under the procedure for obtaining the advance authorisation in Chapter - 4.