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The Directorate General of Foreign Trade (DGFT) has issued Public Notice No.44 dated 14/01/2005 clarifying eligibility for deemed export benefits in terms of Para 8.3 of the Foreign Trade Policy.
In terms of the Public Notice, supplies of goods will be eligible for refund of Terminal Excise Duty in cases where the recipient of the goods does not avail CENVAT credit/rebate on such goods. Similarly, supplies will be eligible for deemed export drawback provided CENVAT credit has not been availed of by the applicant. However, such supplies will be eligible for deemed export drawback on the customs duty paid on the inputs/components.
The rationale behind this condition is that dual benefits should not accrue on the deemed exports. This Public Notice seeks to clarify and to elaborate the intention behind the amendment so that the trade and industry is not put to a disadvantage.
Directorate General of Foreign Trade, Ministry of Commerce & Industry
New Delhi, January 14, 2005
SB/MRS
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