Terminal Excise Duty Refunds (TED)

1. CAPITAL GOODS PROCURED UNDER EPCG SCHEME FROM INDIGENOUS MANUFACTURERS

2. SUPPLY UNDER DEEMED EXPORTS

In terms of para 5.01(a) 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 Terminal Excise Duty. However, this provision of refund is beneficial to those EPCG Authorisation holders whose final products are exempt and cannot avail CENVAT or they have accumulated 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 7.3(c) will be available from the Regional Authority by filing an application in ANF-8 form within twelve months from the date of payment.

THE FOLLOWING SUPPLIES ARE ELIGIBLE FOR REFUND OF EXCISE DUTY:

1. Supply of goods to nuclear power projects through national competitive bidding or through I.C.B.

2. Supply of C. G. to EPCG Authorisation holder against invalidation authorisation issued by R. A.

3. If supply against ARO of Advance Authorization (Intermediate supply)

4. Supply to projects attracting zero customs duty tariff based competitive bidding

(i) Supply of goods will be eligible for refund of terminal excise duty as per Para 7.03 (c) of FTP, provided recipient of goods does not avail CENVAT credit/rebate on such goods.

(ii) However, supply of goods which are exempted ab-initio from payment of Terminal Excise Duty would be ineligible to get refund of TED.

TED EXEMPTIONS:

(a) Supplies under ICB

(b) Supplies of intermediate goods, against invalidation letter, made by an Advance Authorisation holder to another Advance Authorisation holder;

(c) Goods Procured by EOU / EHTP / STP / BTP unit from a unit in DTA; and

(d) Supply of goods to UN/International Organisation or project funded by it.

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