GOVERNMENT OF
INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
Policy Circular No.37
(RE-2005)/2004-2009
5th
December, 2005
To
1.
All Licensing Authorities
2.
Development Commissioners of SEZs
3.
EPZ Division of Deptt.
of Commerce
Subject: Reimbursement of excise duty paid on Fuels
procured from Depots of Domestic Oil Companies.
In terms of para 6.11 © (iv) of Foreign Trade
Policy, the EOU/EHTP/STP/BTP Units are entitled to reimbursement of duty paid on
fuels procured from Domestic Oil Companies as per the rate of drawback notified
by the DGFT from time to time. Till
August, 2004, the EOUs were getting reimbursement of
import duty in the form of duty drawback based on the rate fixed by DGFT and also
getting exemption from payment of excise duty under CT3. This practice was prevalent in case of
fuels procured either directly from the refineries or from the depots of
Domestic Oil Companies. From
September, 2004, the procedure for movement of fuel from the oil refineries to
depots of domestic oil companies has been revised and consequently fuels from the depots of oil companies are not
allowed to be procured under CT3 and are subject to payment of excise duty. Representations have been received for
reimbursement of excise duty paid on procurement of fuel from oil
depots.
2.
The matter has been considered.
In this connection, attention is drawn to provision contained in para 8.5 of FTP in terms of which deemed export benefits are
available both at the input stage as well as terminal stage. The supplies are eligible for
deemed export drawback in terms of para 8.3 of the
policy on the central excise/customs duty paid on inputs/components and also
eligible for refund of terminal excise duty paid on the finished goods provided the recipient of the goods does not avail CENVAT
credit/rebate on such goods. The
Drawback rate fixed
by DGFT for furnance 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.
Accordingly, it has been decided that 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.
3.
In so far as supply to SEZ is concerned, which is treated as a physical
export, the matter is under consideration in consultation with the Deptt. of Revenue.
4.
This issues with the approval of Competent Authority.
(P.K.Santra)
Dy. Director General of Foreign
Trade
For Director General of Foreign Trade
(Issued from
F.No.01/92/180/194/AM06-PC.II)