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"Paragraph 8.2 Categories of Supply Following categories of supply of goods by main/ subcontractors shall be regarded as "Deemed Exports" under FTP, provided goods are manufactured in India:
(a) Supply of goods against Advance Authorisation /Advance Authorisation for annual requirement /DFIA;
(b) Supply of goods to EOU/STP/EHTP/BTP;
(c) Supply of capital goods to EPCG Authorisation holders;
(d) Supply of goods to projects financed by multilateral or bilateral Agencies/ Funds as notified by Department of Economic Affairs(DEA), MoF under International Competitive Bidding (ICB) in accordance with procedures of those Agencies/Funds, where legal agreements provide for tender evaluation without including customs duty;

4. The petitioner urges that with effect 01.04.2015, FTP 2009-2014 was replaced by FTP 2015-2020. Consequently 'Deemed Exports' were now covered under Chapter 7 of the new FTP where Para 7.02 covered the categories of deemed exports and Para 7.03 and 7.04 covered the benefits available to Deemed Exports and Para 7.05 categorically covered the conditions for refund of Terminal Excise Duty. The said new provisions are extracted as follows:

"7.02 Categories of Supply Supply of goods under following categories (a) to (d) by manufacturer and under categories (e) to (h) by main/subcontractors shall be regarded as "Deemed Exports":

10. The respondents argue that the provisions of Chapter 8 of the FTP- 2009-14, titled as "Deemed Exports" are self-contained code in itself which defines what is meant by deemed export and which categories of supplies of goods shall be considered as exports, benefits derived there from and to whom they are available as per the terms in vogue or Para 8.3 of FTP-2009-

14. It is stated that the Department of Economic Affairs by Public Notice No. 1(FT)/DEA/2010 dated 05.05.2010 notified the organizations viz. International Bank of Reconstruction and development (IBRD) and International Development Association (IDA), International Fund for Agricultural Development (IFAD), Asian Development Bank (ADB), Organization of the Petroleum Exporting Countries (OPEC), 'Yen' credit channelized through Japan International Co-operation Agency (JICA) [development component only] and Swedish International Development Agency (SIDA) for the purpose of deemed export benefits under para 8.2(d) of FTP, 2009-14 subject to the condition that the supplies to projects were made under ICB procedure only. To give effect to the DEA's Public Notice, DGFT by Public Notice No.67 on 25th May, 2010 incorporated these agencies in the Appendix 13 of HBP Vol. I appearing in para 8.2(d) of FTP 2009-14 (amended as on 5.6.2012) to be eligible for deemed export benefits under para 8.3 of FTP, 2009. However, the deemed export benefits for supplies made to the projects funded by these agencies were discontinued in the new FTP 2015-20 notified on 01.04.2015 and only two agencies, viz. International Bank of Reconstruction and Development (IBRD) and International Development Association (IDA).

Analysis and Findings

16. The above facts show that Department of Economic Affairs by Public Notice No. 1(FT)/DEA/2010 dated 05.05.2010 notified the organizations, viz. IBRD, IDA, IFAD, ADB, OPEC, JICA, SIDA for the purpose of deemed export benefits under para 8.2(d) of FTP, 2009-14 subject to the condition that the supplies to projects were made under ICB procedure only. To give effect to the DEA's Public Notice DGFT by Public Notice No.67 on 25th May, 2010 incorporated these agencies in the Appendix 13 of HBP Vol. I appearing in para 8.2(d) of FTP 2009-14 (amended as on 5.6.2012) to be eligible for deemed export benefits under para 8.3 of FTP 2009. The deemed export benefits for supplies made to the projects funded by these agencies were discontinued in the new FTP 2015-20 notified on 01.04.2015 and benefits were only available in respect of two agencies, viz. International Bank of Reconstruction and development (IBRD) and International Development Association (IDA).