7.02

Criteria for claiming Benefits

(a) (i) In respect of supply of intermediate goods to Advance Authorisation / DFIA holder, against Invalidation Letter, issued in terms of Paragraph 4.13 of HBP, application to obtain Advance Authorisation for import of duty free inputs, as provided under chapter 4 of FTP 2015-20, shall be made as per procedures given in Chapter 4 of HBP. For supplies against invalidation letter, TED refund shall be given in accordance with para 7.03(c) of FTP 2015-20, provided, there is no exemption.

(ii) In respect of supply of goods to Advance Authorisation / DFIA, against ARO, procedure given in Chapter 4 of the HBP shall be followed. TED refund for supplies against ARO shall be allowed in accordance with para 7.03(c) of FTP 2015-20, provided, there is no exemption. Duty Drawback shall be allowed on [Deleted - basic custom ] duty paid on inputs used in such supplies.

(b) In respect of supply of goods to EOU / EHTP / STP / BTP, Advance Authorisation / DFIA can be obtained as per procedure given in the Chapter 4 of HBP for exemption from payment of Terminal Excise Duty, procedure as per Excise Circular number 851/9/2007-CX dated 3.5.2007 read with circular No. 10/2009-Cus dated 25.2.2009, shall be followed for removal of goods against CT-3. TED refund shall be given for supply of goods to EOU / EHTP / STP / BTP in accordance with para 7.03(c) of FTP 2015-20, provided, there is no exemption. In case Advance Authorisation, as provided in chapter 4 of FTP 2015-20, is not obtained for import of duty free inputs against such supply, drawback claim for [Deleted - basic custom ] duty paid on inputs, used in the resultant product, shall be filed with the DC concerned. A DTA Unit shall claim benefits from the concerned RA.

(c) In respect of supply of goods to an EPCG Authorisation holder, against Invalidation Letter, application for Advance Authorisation / DFIA shall be made as per procedures given in Chapter 4 of HBP. If Advance Authorisation / DFIA is not obtained for duty free inputs, Duty drawback shall be allowed on [Deleted - basic custom ] duty paid on inputs used in the resultant product.

(d) In respect of supply of goods to other categories as listed in the Paragraph 7.02 (e), (f), (g) & (h) of FTP, Advance Authorisation / DFIA for import of duty free inputs as provided under chapter 4 of FTP 2015-20 may be obtained against Project Authority Certificate as per Appendix- 7C. However, if Advance Authorisation / DFIA is not obtained against such supplies for duty free inputs as provided in chapter 4 of FTP 2015-20, claim for duty drawback for [Deleted - basic custom ] duty may be filed as per ANF-7A. TED refund for projects mentioned in para 7.08(iii)(a) of FTP 2015-20 in respect of eligible items of supply covered under schedule IV of Central Excise Act, 1944, shall be available provided there is no exemption.

(In above Para 7.02 the words ‘basic custom’ wherever used stands deleted vide PUBLIC NOTICE NO. 40/2019, DT. 31/10/2019)