7.05

Conditions for refund of terminal excise duty

(i) Supply of goods will be eligible for refund of terminal excise duty as per Para 7.03 (c) of FTP, provided recipient of goods does not avail CENVAT credit/rebate on such goods.

(ii) However, supply of goods which are exempted ab- initio from payment of Terminal Excise Duty would be ineligible to get refund of TED. Exemption from TED is available to the following:

(a) Supplies under ICB;

(b) Supplies of intermediate goods, against invalidation letter, made by an Advance Authorisation holder to another Advance Authorisation holder;

(c) Goods Procured by EOU / EHTP / STP / BTP unit from a unit in DTA; and

(d) Supply of goods to UN/International Organisation or project funded by it.