L.B. Singhal
Director General

SUB : ADMISSIBILITY OF ALL INDUSTRY RATE OF RS. 925/- PMT FOR FURNACE OIL SUPPLIED BY DOMESTIC OIL COMPANIES TO EOUs/SEZ UNITS

I had received a number of representations from our member units stating that DGFT Notification No. 10(RE-2003)/2002-2007 dated 22-5-03 has prescribed All Industry Rate of duty drawback for supply of furnace oil @ Rs. 925/- PMT. However, they are not able to get this deemed export benefit for supplies affected from 1-4-04 because this notification No. 10 dated 22-5-03 gives benefit only for the period ending 31-3-04. Units had also forwarded the letters issued by the Development Commissioners to this effect.

I had taken up this issue with Shri G. K. Pillai, Additional Secretary & DGFT, Ministry of Commerce requesting him to renew Notification No. 10 dated 22-5-03. Shri G. K. Pillai, Additional Secretary & DGFT, Ministry of Commerce has got this issue examined very promptly. I have received a letter No. Misc.9/AM-2000/DBK Cell/337 dated 6-8-04 from Shri S.

C. Sharma, Dy. DGFT informing as follows:-

"GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DIRECTORATE GENERAL OF FOREIGN TRADE,
UDHOG BHAVAN, NEW DELHI - 110 011

No. Misc.9/AM-2000/DBK Cell/337 Dated 6-8-04

To
The Director General,
Export Promotion Council for EOUs & SEZ Units,
705, Bhikaji Cama Bhavan,
New Delhi 110 066

(Attn : Shri L. B. Singhal)

Sir,

With reference to your letter No. EPC/SEZ/AM-04/F-20 dated 22.7.2004 addressed to Shri G. K. Pillai, DGFT on the subject noted above, I write to inform you that as per notification No. 10(RE-2003)/2002-2007 dated 22.5.2003 (copy enclosed), the AI Rate of Rs. 925/- PMT for furnace oil supplied by domestic oil companies to EOUs/SEZ Units is admissible until further orders. However, due to oversight the period of validity of rates was shown as upto 31.3.2004 on the DGFT website. Inconvenience caused is regretted.

Yours faithfully,

Sd/-
(S. C. Sharma)
Dy. Director General
of Foreign Trade"

Accordingly it is clarified that the AI rate of Rs. 925/- PMT for furnace oil supplied by domestic oil companies to EOUs/SEZ units is available to EOUs/SEZ Units.

DGFT has amended language of this notification on its website also. A copy of this notification is enclosed alongwith.

This is for your information.

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART II SECTION 3 SUB-SECTION (II)

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY

NOTIFICATION NO.10 (RE-2003) 2002-2007 NEW DELHI, DATED 22nd May, 2003

S.O.(E) In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy, 2002-2007 (RE 2003), the Director General of Foreign Trade hereby announces All Industry Rate of Duty Drawback of Rs.925/- per MT for furnace oil supplied by domestic oil companies to EOU/EPZ/SEZs under deemed export scheme as contained in Chapter 8 of the EXIM Policy for the period till further orders.

This issues in public interest.


( L. Mansingh )
Director General of Foreign Trade
and ex-officio Addl. Secretary to the Government of India