The Directorate General of Foreign Trade, under the Department of Commerce, Government of India, has extended the Deemed Exports benefits for the supply of fuel in petroleum exploration and operations. In this article, we will explore the details of this extension and the guidelines for claiming refunds.
Extension of Deemed Exports Benefits:
The extension of Deemed Exports benefits pertains to the refund of TED (Terminal Excise Duty) on the supply of fuel to projects involved in petroleum exploration and operations. This extension is applicable up to March 31, 2023.
Conditions for Eligibility:
To qualify for these benefits, certain conditions must be met:
1. The Deemed export benefit is available only for supply of eligible fuel items covered under Schedule 4 of the Central Excise Act 1944.
2. Supplies must be made to:
- Projects listed for petroleum operations in the Customs Notification No. 50/2017-Customs dated 30.6.2017 under Sr. No. 404, as amended from time to time and covered in Para 7.02 (1) of FTP 2015-20.
- Export Oriented Units (EoUs).
- Advance Authorisation holders or Annual Advance Authorisation holders.
Declaration Requirement:
Applicants may be required to provide a declaration stating that the High-Speed Diesel (HSD) procured under the subject invoices has been used for running, repairing, or maintaining various types of marine vessels, helicopters, and other equipment necessary to support petroleum operations. This includes work boats, barges, crew boats, tugs, and supply boats, among others.
Chartered Accountant Certificate:
Applicants may also need to submit a certificate from a Chartered Accountant confirming that the HSD procured has been included in the expenditure details submitted for the relevant period. This submission should be made to the Director General of Hydrocarbons, Ministry of Petroleum and Natural Gases, Government of India. The certificate should also state that these expenses have not been disallowed by the Office of the Director General of Hydrocarbons.
Verification of Invoices:
It is crucial to verify that the HSD has been procured by the Applicant from one of the public sector oil marketing companies and that the excise duty on the same has been duly discharged. Only the Basic Excise duty is eligible for a refund, and no refund of other duties such as Additional Excise Duty or Special Additional Excise Duty is admissible.
Conclusion: The extension of Deemed Exports benefits for the supply of fuel in petroleum exploration and operations until March 31, 2023, provides relief to eligible entities. By adhering to the specified conditions and guidelines, businesses can ensure they meet the criteria for claiming refunds. It is essential to understand and comply with these requirements to benefit from this extension. For further queries or assistance, you can reach out to the Directorate General of Foreign Trade.
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F. No. 01/92/180/124/AM-22/PC-Vl /42
Directorate General of Foreign Trade
Department of Commerce, Government of India
Vanijya Bhawan, Now Delhi
(Policy VI Division)
Dated 12.10.2023
To.
ALL HAS, UCS.
Subject: Deemed Exports benefits on supply of fuel for Petroleum Exploration/Operation under Foreign Trade Policy, 2015-20 extended upto 31.3.2023)—Regarding
Sir,
I am directed to refer to the matter regarding refund of TED on supply of fuel to Projects listed for petroleum operations in the Customs Notification No. 50/2017-Customs dated 30.6.2017 under S. No. 404 List 33 subject to conditions mentioned in Para 7.02(f) of FTP, 2015-20 . The matter has been examined in constitution with DoR and accordingly , all RAs/DCs arc directed to consider the cases of refund of Deemed Exports benefits on supply of fuel for Petroleum Exploration/Operation under FTF 2015-20 ( extended upto 31.3.2023) as per the following guidelines:
i) As clarified by TRU Division of DoR vide D.O. letter dated 1.2.2022 & O.M. No. CBIC. 190354/149/2022.70(TRU-1).CBEC dated 25.07.2023, benefit of TED on supply of fuel for Petroleum Operations was available till 01.02.2022 and thereafter discontinued with effect from 02.02.2022 with the issue of Customs Notification No. 02/2022 dated 2nd February 2022. Hence claims received by RAs/DCs for refund of TED for supply of fuel for Petroleum Exploration/Operation till 01.02.2022 can only be considered
ii) The claims arc to be examined In accordance to Para 7.08 (hi) of FTP, 2015.20 which Inter-alia states that “Deemed export benefit shall be available on supply of (in respect of eligible fuel items covered under Schedule 4 of Central Excise Act 1944) provided supplies arc made to:
a. Project listed for petroleum operations in the Customs Notification No. 50/2017-Customs dated 30.6.2017 under Sr. No. 404, as amended from time to time and covered in Para 7.02 (1) of I-1P.
b. EoUs
c. Advance Authorisation holder / Annual Advance Authorisation holder.
iii) The applicants may be asked to give a declaration that HSD procured by them under the subject invoices in the application has been used for running, (repairing, or maintenance) of helicopters, all types of marine vessels to support petroleum operation including work boats, barges, crew boats, tugs and supply boats etc..
iv) The applicant mar also be asked to submit a certificate from a Chartered Accountant saying that the H5D so procured has been included in the detail of expenditure, submitted for the relevant period, by him to Director General Hydrocarbons, Ministry of Petroleum and Natural Gases, Govt. of India. The certificate may also state that these expenses have not been disallowed by OGH.
v) It may also be checked from the invoices that the II5D has been procured by the Applicant from one of the public sector oil marketing companies and the excise duty on the same has been discharged in
vi) Only Basic Excise duty Is to be paid. No refund of other duties such as Additional Excise Duty/S. Additional Excise Duty etc. is admissible.
This Issues with the approval of Competent Authority.
Yours sincerely,
(Pradyumna Sahu)
Deputy Director General of Foreign Trade
(Ph. (011) /3061562 Extra. SO/
Email: [email protected]
