Page 166 - ELT_1st July 2020_Vol 373_Part 1

76 EXCISE LAW TIMES [ Vol. 373

Subject : Grant of Deemed Export Benefits for supplies to the projects
funded by Organizations such as JICA etc. under para 8.2(d) of the For-
eign Trade Policy, 2009-14.
Department of Economic Affairs vide Public Notice No. l(FT)/DEA/2010,
dated 5-5-2010 notified six organizations viz. International Bank of Recon-
struction and Development (IBRD) & International Development Associa-
tion (IDA), International Fund for Agricultural Development (IF AD), Asian
Development Bank (ADB) Organization of Petroleum Exporting Countries
(OPEC). Yet credit channelized through Japan International Co operational
Agency (JICA) [Development component only] and Swedish International
Development Agency (SIDA) for the purpose of deemed export benefits
under para 8.2(d) of FTP, 2009-14 subject to the condition that the supplies
to projects were made under ICB procedure only. To give effect to the
DEA’s Public Notice, DGFT vide Public Notice No. 67 on 25th May, 2010
incorporated these agencies in the Appendix-13 of HBP Vol. I appearing in
para 8.2(d) of FTP 2009-14 to be eligible for deemed export benefits under
para 8.3 of FTP 2009-14.
2. However, the deemed export benefits for supplies made to the projects
funded by these agencies were discontinued in the new FTP 2015-20 noti-
fied on 1-4-2015 and only three agencies viz. International Bank of Recon-
struction and Development (IBRD) and International Development Associ-
ation IDA); and Asian Development Bank (ADB) (as listed in Appendix -
7A) were continued to be eligible agencies for deemed Export Benefits in
terms ofpara 7.02 (e) of FTP 2015-20.
3. Under para 8.3 of FTP 2009-14, deemed export supplies were eligible
for any/all of the 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
requirement/DFIA.
(b) Deemed Export Drawback.
(c) Exemption from terminal excise duty where supplies are
made against ICB. In other cases, refund of terminal excise du-
ty will be given. 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.
4. The supplies to the projects funded by JICA notified vide DGFT’s Pub-
lic Notice No. 67, dated 25th May, 2010 were made against ICB and hence
were eligible for ab initio exemption from payment of terminal excise duty
under para 8.3(c) of FTP, 2009-14. However, several representations were
received stating that the supplies to projects funded by JICA were not get-
ting exemption from TED from Jurisdictional excise authorities. The issue
was taken up with Department of Revenue. At field level, the exemption
from payment of Terminal Excise Duty for supplies to these agencies other
than IBRD, IDA and ADB were not available under relevant excise notifica-
tions even though the supplies were under ICB. Further, since the projects
were under ICB, the RAs were not considering the application for refund of
TED in accordance with the provisions of FTP.

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