Page 162 - ELT_1st July 2020_Vol 373_Part 1

72 EXCISE LAW TIMES [ Vol. 373

ries, tools, dies and such goods which are used for installation
purposes till stage of commercial production, and spares to ex-
tent of 10% of FOR value to fertilizer plants;
(f) Supply of goods to any project or purpose in respect of which the
MoF, by a notification, permits import of such goods at zero customs
duty;
(g) Supply of goods to power projects and refineries not covered in (f)
above;
(h) Supply of marine freight containers by 100% EOU (Domestic
freight containers-manufacturers) provided said containers
are exported out of India within 6 months or such further pe-
riod as permitted by customs;
(i) Supply to projects funded by UN Agencies; and
(j) Supply of goods to nuclear power projects through competi-
tive bidding as opposed to ICB.
Benefits of deemed exports shall be available under paragraphs (d), (e), (f)
and (g) only if the supply is made under procedure of ICB.
However, in regard to mega power projects, the requirement of ICB would
not be mandatory, if the requisite quantum of power has been tied up
through tariff based competitive bidding or if the project has been awarded
through tariff based competitive bidding.”
(emphasis supplied)
10. Paragraphs 8.3 and 8.4 of the FTP stipulates the benefits to be ex-
tended to “deemed exports” and the relevant portion thereof is extracted herein-
below :
“8.3 Deemed exports shall be eligible for any/all of following benefits in
respect of manufacture and supply of goods qualifying as deemed exports
subject to terms and conditions as in HBP vl :-
(a) Advance Authorisation/Advance Authorisation for annual require-
ment/DFIA.
(b) Deemed Export Drawback.
(c) Exemption from terminal excise duty where supplies are made
against ICB. In other cases, refund of terminal excise duty will be giv-
en. Exemption from TED shall also be available for supplies made by
an Advance Authorisation holder to a manufacturer holding another
Advance Authorization if such manufacturer, in turn, supplies the
product(s) to an ultimate exporter.
8.4. Benefits to the Supplier.
...
8.4.4(i) In respect of supplies made under paragraphs 8.2(d), (f) and (g) of
FTP, supplier shall be entitled to benefits listed in paragraphs 8.3(a), (b) and
(c), whichever is applicable.
….
(iv) Supply of Capital goods and spares upto 10% of FOR value of capital
goods to power projects in terms of paragraph 8.2(g), shall be entitled for
deemed export benefits provided the ICB procedures have been followed at
Independent Power Producer (IPP)/Engineering and Procurement Contract
(EPC) stage. Benefit of deemed exports shall also be available for, renova-
tion I modernization of power plants. Supplier shall be eligible for benefits
EXCISE LAW TIMES  1st July 2020  162