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Can it be treated as misue of deemed exports benefit
It is observed that Govt Of India (GOI)has given certain exemption to claim zero customs duty for petroleum Operations undertaken by ONGC and OIL under PEL or ML issued or renewed after 1.4.99 and granted by GOI . In such cases, oil companies do allow the bidders in International competitive bidding tenders to claim DEB and they also assist the domestic bidders in giving reqd documentation for claiming DEB like refund of terminal excise duty etc. But this benefit is extended only against ICB tender floated by the oil companies.
Now quite often it is observed that in order to get the excise duty benefit, oil companies are involved in mainly floating ICB tenders for the items which are freely available in abundance in India. Pl clarify whether floating ICB tenders just to claim deemed export benefit even if domestic suppliers/bidders are in plenty in India is correct procedure or not?. Can it be treated as misuse of DEB.Will the above tantamount to willfull revenue loss to GOI.
Replies (1)
DEB is a sensitive issue, and before signing the documents, excise/customs officers get eusure that duty is paid at source, also the assesee ( beneficiary) has to declare on the document about the nature of duty payment. so the DEB is issued on only tax paid portion, not on whole.
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