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2014 (4) TMI 1057 - HC - CustomsBenefit of deemed export - Held that:- Benefit of deemed export is available for renovation and complete modernisation of power plants. The supplier is eligible for benefits listed in Paragraph 8.3(a) and (b) of the Foreign Trade Policy, whichever is applicable. However, supply of goods for setting up any mega power project, as specified in Serial No. 400 of DoR Notification No. 21/2002-Customs, dated 1-3-2002, as amended, are eligible for deemed export benefits as mentioned in Paragraph 8.3(a), (b) or (c) of the Foreign Trade Policy, whichever is applicable, if such mega power project complies with the threshold generation capacity specified in the said Customs notification. - Cement and steel have been excluded from deemed export by amendment of the Foreign Trade Policy in June, 2012 by insertion of Paragraphs 8.8.1 and 8.8.2 as observed above. Prior to the amendment these items were not excluded. No reasons have been disclosed for the finding of the DGFT that deemed export benefits would not be available in respect of steel and cement. On the other hand, the very fact that the Foreign Trade Policy had to be amended in June, 2012 to introduce specific provisions for exclusion of cement and steel makes it clear that cement and steel were included prior to the amendment in June, 2012. - The petitioner shall not be required to pay back the deemed export benefit received in the form of refund of Terminal Excise Duty paid by the petitioner on steel and cement supplied to the concerned projects. - Decided in favour of assessee.
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