DEEMED DRAWBACK OFN HSD/FURNACE OIL PROCUREMENT BY 100% EOUS

Whether EOU/EHTP/STP procurring HSD and Furnance Oil directely from Govt. Rerefinerie against CT-3 form and are availing the benefit of exemption of Excise duty are eligbile for deemed duty drawback.

DGFT Policy Circular No, 37/2005-09 is quite clear and it clearly clarifies that the Drawback rate fixed by DGFT for furnace oil and high speed diesel take into account the customs duty on crude oil deemed to have been imported by the oil companies. This, however, does not take into account the excise duty paid on the procurement of fuel from the depots of domestic oil companies. Fuels procured from the depots of domestic oil companies on payment of excise duty by EOU/EHTP/STP/BTP will be eligible for reimbursement in the form of terminal excise duty in addition to drawback rates notified by DGFT from time to time provided the recipient unit does not avail CENVAT credit/rebate on such goods. Supplies taken directly from the refineries will continue to get exemption from payment of excise duty under CT3.