CLARIFICATION FOR TED ON FUEL BY EOU

CLARIFICATION FOR TED AVAILMENT IN REPECT OF SUPPLY TO EOU

EXPORT PROMOTION COUNCIL FOR EOUs & SEZ UNITS
(Ministry of Commerce & Industry, Government of India)
705, BHIKAJI CAMA BHAVAN, BHIKAJI CAMA PLACE, NEW DELHI 110 066
TEL : 26165805, 26167042, FAX: 26165538, EMAIL : epces@vsnl.net
L.B. Singhal
Director General
EPCES CIRCULAR NO.2 DATED 12.1.2006
Sub : Reimbursement of Excise Duty paid on fuels procured from depots of
domestic oil companies
Please refer to EPCES Circular No. 73 dated 8-12-2005 wherein I had forwarded DGFT
Circular No. 37 dated 5-12-2005. DGFT Circular No. 37 dated 5-12-2005 had clarified abut
reimbursement of drawback and excise duty in respect of supplies affected to EOUs. This
circular had further stated that in so far as supply to SEZ is concerned, which is treated as
physical exports, the matter is under consideration in consultation with Department of Revenue.
On receipt of this DGFT Circular I had made a reference to DGFT pointing out that
DGFT had fixed up the drawback rates for Furnace Oil (FO) as well High Speed Diesel (HSD)
even in respect of supplies to SEZs as well.
Now I have received a letter No. 01/92/180/194/AM06/PC.II/548 dated 22/12/2005 from
DGFT which has clarified as follows:-
“Please refer to your email dated 8-12-2005 on the above subject.
It is clarified that the circular No. 37 dated 5-12-2005 was issued in the
context of re-imbursement of excise duty paid on fuels procured from depots
of domestic oil companies without CT-3 facility and not with reference to
drawback, which are available on this item as per the rate notified by DGFT.
The facility of drawback on supply to SEZ, which constitutes the deemed
import duty component, as per the notified rates would continue to be
available. For refund of excise duty paid on such supply to SEZ, the matter is
under consideration in consultation with Department of Revenue. Supply to
EOUs would however be eligible for TED refund as per the above circular.”
A copy of this letter is enclosed alongwith. Hence in view of this letter the facility of
drawback on supplies to SEZs, as per the notified rates would continue to be available. For
refund of excise duty paid on such supplies to SEZ, the matter is under consideration in
consultation with the Department of Revenue. Supplies to EOUs would be entitled for the benefit
as already explained in the DGFT Circular No. 37.
This is for your information please.
______________________________________
F.No. 01/92/180/194/AM06/PC.II/548
Government of India
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Dated the 22nd December 2005
To
The Director General
Export Promotion Council for EOU & SEZ
705, Bhikaji Cama Bhavan,
Bhikaji Cama Place,
New Delhi – 100 066
Subject : Re-imbursement of excise duty paid on fuels procured from depots of Domestic
Oil Companies.
Sir,
Please refer to your email dated 8-12-2005 on the above subject.
It is clarified that the circular No. 37 dated 5-12-2005 was issued in the context of reimbursement
of excise duty paid on fuels procured from depots of domestic oil companies
without CT-3 facility and not with reference to drawback, which are available on this item as per
the rate notified by DGFT. The facility of drawback on supply to SEZ, which constitutes the
deemed import duty component, as per the notified rates would continue to be available. For
refund of excise duty paid on such supply to SEZ, the matter is under consideration in
consultation with Department of Revenue. Supply to EOUs would however be eligible for TED
refund as per the above circular.
Yours faithfully,
(P. K. Santra)
Dy. Director General of Foreign Trade
For Director General of Foreign Trade
Copy for information to:
1. All Licensing Authorities
2. All Development Commissioners of SEZ