Dated 18th March 2013
DGFT(Ministry of Commerce and Industry, GOI) vide Policy Circular No. Policy Circular No. 15 /2009-2014 (RE 2012) Dated: 21st Feb, 2013 on deemed export benefits for supply against ARO/Invalidation letter against Advance Authorisation has clarified as below:
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 Authorisation and TED refund.
Benefits available against ARO/invalidation letter in respect of Advance Authorisation are as under:
A. For supply against ARO :
(i) Refund of Duty drawback
(ii) Refund of TED
B. For supply against invalidation letter against Advance Authorisation (AA) :
(i) Ab-initio exemption from TED. (hence there would be no question of refund of TED).
(ii) AA/DFIA for intermediate supply.
SOURCE: GOVT. OF INDIA, Ministry of Commerce and Industry