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 shall be made as per procedures given in Chapter 4 of HBP. For supplies against invalidation letter, no TED refund shall be provided because such supplies are exempted from payment of Excise Duty under Excise Notification no 44/2001 dated 26.06.2001, as amended time to time.

(ii) In respect of supply of goods to Advance Authorisation / DFIA, against ARO / Back to back L/C, procedure given in Chapter 4 of the HBP shall be followed. TED refund for supplies against ARO / Back to Back Letter of Credit shall be allowed, provided, Excise duty is paid while removing such goods. Duty Drawback shall be allowed on duty paid 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 No. 851/9/2007-CX dated 03.05.2007 read with Circular No. 10/2009-Cus. dated 25.02.2009, as amended, shall be followed for removal of goods against CT-3. No TED refund shall be provided for supply of goods to EOU / EHTP / STP / BTP. In case Advance Authorisation is not obtained for import of duty free inputs against such supply, drawback claim for duty paid 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. Since supply of goods to an EPCG Authorization holder is not exempted from payment of TED, claim for such TED refund may be made to the RA concerned, as per the invalidation letter. In respect of supply of goods to EPCG Authorisation holder against ARO, issued as per Paragraph 5.08 of HBP, refund of TED shall be allowed. If Advance Authorisation / DFIA is not obtained for duty free inputs, Duty drawback shall be allowed on duty paid inputs used in the resultant product.

(Above (c) has been amended vide PN. NO.16/2015, DT. 04/06/2015)

[OLD- (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. In respect of supply of goods to EPCG Authorisation holder against ARO, issued as per Paragraph 5.08 of HBP, refund of TED shall be allowed. If Advance Authorisation / DFIA is not obtained for duty free inputs, Duty drawback shall be allowed on duty paid 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 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, claim for duty drawback may be filed as per ANF-7A. In case supply of goods is made against ICB contract, no TED refund shall be provided because supply against ICB contract is exempted from payment of Excise Duty under Excise Notification No 12/2012-CE dated 17.03.2012.