Excise duty exemption to pipes used in water treatment/supply plants - Clarification regarding. - Central Excise - F. No. 354/34/2008-TRU

Instruction Government of India Ministry of Finance (Department of Revenue) Tax Research Unit dated 14-3-2008 Subject : Excise duty exemption to pipes used in water treatment/supply plants - Clarification regarding. Full exemption from excise duty is currently available to all items of machinery including instruments, apparatus and appliances, auxiliary equip ment and their components/parts required for setting up of water treatment plants in terms of Sr. No. 7 of notification No. 6/2006-C.E., dated 1-3-2006 . This exemption covers pipes needed for delivery of water from its source to the plan; (including clear treated water reservoir); and from there to the storage facility as well as pipes of outer diameter exceeding 20 cm when they are an integral part of the water supply project. The exemption is subject to the condition that the manufacturer produces a Certificate to the effect that the goods are required for the intended purpose from the District Collector Magistrate in which the plant is located. 2. Doubts have been raised about whether the exemption pertaining to pipes applies only to pipes required for the setting up of water treatment plants or also to pipes for replacement of worn-out/damaged pipes. 3. The matter has been examined. In view of the policy objective of creating the requisite infrastructure for augmenting the availability of clean, portable drinking water. It is clarified that the aforesaid exemption would also apply to pipes required for replacement and not just those for initial setting up. 4. Field formations may be suitably informed. [F. No. 354/34/2008-TRU]