Clarification Regarding Deemed Export Benefits for Supply Against ARO/Invalidation Letter Against Advance Authorization

Policy Circular No.:15 /2009-2014 (RE 2012)

Dated: 21/02/2013

Policy Circular No.9/2009-14 dated 1.10.2009  had clarified that supply of goods against Advance Release Order (ARO) is eligible for refund of duty drawback only and not for Terminal Excise Duty (TED) and  supplies against invalidation letter is eligible for Advance Authorization and TED refund.

The matter has been further examined in this Directorate. Benefits available against ARO/invalidation letter in respect of Advance Authorization are as under:

1.   For supply against ARO : 

a)   Refund of Duty drawback

b)   Refund of TED 

2.   For supply against invalidation letter against Advance Authorization    (AA) : 

a)   Ab-initio exemption from TED. (hence there would be no question of refund of TED).

b)   AA/DFIA for intermediate supply.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, 

Delhi-110001

Mobile No. +91-9873082769

Website: www.caaga.co.in