( Author )
04 March 2013
In an International Competitive Bidding (ICB)for LSTK contract in area eligible for customs duty exemption, an Indian party being an Installation & Commissioning contractor quoted based on back up authorization of a manufacturer.
In normal course of procurement of eligible material in ICB tenders for use in area eligible for customs duty exemption, the manufacturer gets Deemed export benefits by way of which he gets refund of excise duty from the Govt. against payment certificate from the customer along with exemption of customs duty on raw materials & components against project authority certificate from the customer. This deemed export benefit is not available to the supplier who has quoted based on back up authorization of manufacturer.
Please clarify whether the Installation ^ Commissioning contractor quoting on the basis of back up authorization of manufacturer for the LSTK Jobs in an area eligible of customs duty exemption against International Competitive bidding tenders, would be eligible for Deemed Export Benefits i.e. will he get refund of excise duty from the Govt. against payment certificate of customer along with exemption from customs duty on raw material and components against Project Authority Certificate, as these would be available to manufacturer who is not quoting directly?