Circular No. 799/32/2004-CX
23rd September, 2004
F.No. 261 /27/3/2001-CX-8
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Sub: Withdrawal of warehousing facility for removal of petroleum products without payment of duty from the refineries -Supplies to Export Oriented Units- regarding.
I am directed to state that references have been received on the issue relating to removal of petroleum products without payment of duty to Export Oriented Units consequent on withdrawal of the warehousing facility for petroleum products.Online GST Certification Course by TaxGuru & MSME- Click here to Join
2. The matter has been examined. It has been observed that EOUs are entitled to avail CENVAT Credit Scheme w.e.f . 06.09.2004 vide notification No. 18/2004-CE (N.T.) dated 6.9.2004. Thus, the EOUs who receive duty paid goods can avail input credit for the duty paid on such goods and utilize the credit for payment of duty on DTA clearances and if for some reasons, the credit cannot be utilized, the same can be claimed as refund under rule 5 of CENVAT Credit Rules. In addition, as per para 8.3 of Foreign Trade Policy, the supplies to EOUs are treated as “Deemed Export”. Thus, the manufacturers have the additional facility to claim the benefit of refund of Terminal Excise Duty and deemed Export drawback on such supplies to EOUs.
3. In view of the fact that number of mechanisms have already been provided to give excise duty relief on excisable goods supplied to EOUs, it has been decided that there is no justification to consider any further procedure in the matter.
4. Trade and field formations may please be informed suitably.
5. Receipt of the Circular may be acknowledged.
6. Hindi version will follow.
Vijay Mohan Jain
Under Secretary to the Govt. of India