03 September 2013
A person holding an EPCG license may source the capital goods from a domestic manufacturer instead of importing them. The domestic manufacturer supplying capital goods to EPCG license holders shall be eligible for refund of Excise Duty paid by him.
REFUND OF TERMINAL EXCISE DUTY
(1) PROCUREMENT OF CAPITAL GOODS UNDER EPCG SCHEME FROM INDIGENOUS SOURCES AND
(2) SUPPLY UNDER DEEMED EXPORTS.
In terms of para 5.6 of FTP, the EPCG Authorisation holder may source the capital goods from domestic sources instead of importing them. In this case, the supplier of capital goods will charge the excise duty at the time of supply of capital goods which is refundable either to the EPCG Authorisation holder or to the supplier. The EPCG authorisation holder can also take the CENVAT if he does not want to avail of the exemption. However, this provision of refund is beneficial to those EPCG Authorisation holder whose final products are exempt and cannot avail CENVAT.
If you supply to the Project Authority which are not covered under the International Competitive Bidding then there is a provision to get the refund of excise duty. The recipient may also claim the benefit on production of suitable disclaimer from the supplier along with necessary documents.
The refund of Terminal Excise Duty in terms of para 8.3(c) will be available from the Regional Authority by filing an application in ANF-8 form within twelve months from the date of payment.
SUPPLIES ELIGIBLE FOR REFUND :
The following supplies are considered for refund of Excise.
1) Supply to EOU/EHTP/STP/BTP.
2) Supply of goods to projects financed by multilateral agencies under the International Competitive Bidding in terms of para 8.2(d)
3) Supply of goods to any project or purpose in respect of which the Ministry of Finance by a notification permits the import of such goods at zero customs duty.
4) Supply of goods to power projects and refineries not covered in 3 above.
5) Supply of goods to nuclear power projects through competitive bidding as opposed to I.C.B.
6) Supply of C. G. to EPCG Authorisation holder against invalidation authorisation issued by R. A.
7) In case of intermediate supplies, Excise Duty is exempted.
The supplier is also entitled to obtain advance authorisation under Deemed Exports benefits for inputs used in the capital goods supplied under the EPCG authorisation holder. The procedure for filing an application is similar to the one described under the procedure for obtaining the advance authorisation in Chapter - 4.
it can be filed in CONCERNED RDGFT PRESCRIBED FORM
FOR REFUND OF TERMIAL EXCISE DUTY/DUTY DRAWBACK:
i) Application in Appendix 12B.
ii) Supply invoices certified by Project Authority or self certified or excise attested invoices. In case of 100% EOUs/STP/EHTP units, a complete AR-3A/ supply invoice certified by the bond officer is to be furnished.
iii) Payment certificate issued by the Project Authority as per Appendix 12A. For supply to EOU units the certificate to be given regarding receipt of payment through normal banking channel in the form given in Appendix- 22A. However, in respect of supplies under paragraph 8.2 (d),(e),(f) (g) and (j), wherever eligible for refund of TED, if the applicant is not able to furnish payment certificate, he may alternatively furnish the copies of the excise invoices showing the receipt of the material by the Project Authority duly countersigned by the authorised person for this purpose as given in note (3)of Appendix�12, in lieu of payment certificate. In such cases, the applicant shall furnish the copies of the excise invoices showing the receipt of the material by the Project authority duly countersigned by the authorised person for this purpose as given in note (3) of Appendix-12 in lieu of payment certificate.
iv) Photocopy of complete A.R.O./Back to Back LC/DEEC (in case of Advance Licence for deemed Export)
v) Photocopy of the purchase order/L.O.I/contract (self certified).
vi) Original input stage Invoices with corresponding RT-12 duly certified by Excise authorities or self certified invoice showing the Terminal Excise Duty paid.
vii) In respect of supplies under paragraph 8.2(d), (e) (f) (g) and (j), the applicant shall furnish a copy of the project authority certificate as given in Appendix-12.
(viii) a. A self declaration of non-availment of CENVAT credit/rebate from the recipient of goods along with the details of the Central Excise Registration No. and the Central Excise Authority, with whom the recipient is registered. In cases, where the recipient is not registered with central Excise, a declaration to this effect is to be given by the recipient.
b. A self declaration by the applicant stating that the goods supplied are either not excisable or the goods are excisable but CENVAT/rebate facility is not available to the recipient of the goods.
(Sl. No. A(viii) has been amended vide PN.No. 44/2004, DT. 14/01/2005)
[OLD- viii) Non-availment of CENVAT credit Certificate from the Jurisdictional Excise Authority of the recipient of goods, where CENVAT credit is available on the goods supplied.]
(S.No. (viii) has been added vide PN. NO. 32/2004-09, DT. 15/12/2004)
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