EOUs - CENVAT CREDIT AND REFUND OF TERMINAL EXCISE DUTY
Well Done DGFT!
Our edit team had pointed out in our story ANOTHER 'SURATISATION' IN THE OFFING : IS CBEC WAITING FOR A REPEAT? a couple of weeks ago that goods cleared to EOUs are deemed exports and so the suppliers are eligible for refund of terminal excise duty and now the EOUs are eligible for Cenvat credit. We had pointed out that CBEC/DGFT should take remedial steps to avoid future complications.
DDT is happy to report that DGFT has responded positively. By DGFT PN 32/2004- 2009, it has been provided that deemed credit benefit will be given only if cenvat credit is not availed and a certificate to that effect is produced.