Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
 
Discussions Forum
Home Forum Central Excise
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.
 
← Previous Next →

Procedure for obtaining exemption from Excise /Customs duty on inputs acquired for supplying to a Power project client, Central Excise

Issue Id: - 3799
Dated: 9-2-2012
By:- Sandhya Srinivas
Procedure for obtaining exemption from Excise /Customs duty on inputs acquired for supplying to a Power project client

  • Contents

We supply our product to clients like BHEL executing mega power projects. The purchase orders are given on a Excise Exempt basis and Project Authority Certificate (PAC) is provided to us with our name as a supplier to enable us to invoice the client without Excise.

How do we obtain the same benefit ( excise/customs exemption) when we in turn procure inputs( both domestic and imported) from our suppliers?.  Do we need to ask our client to include our supplier names in the original PAC that they provide or a seperate PAC has to be obtained and if so by whom or do we need to approach our Excise Jurisdiction for the same. Kindly clarify.

 

Posts / Replies

Showing Replies 1 to 15 of 15 Records

1 Dated: 10-2-2012
By:- mehta pradip

No exemption  from payment of Ex. Duty is available as per order reported at 2011(272)ELT 79(Tri-Del) in the matter bet. Sangam Structurals Ltd V/S Comm. of C.Ex (Allahabad) (2011 (3) TMI 1304 - CESTAT, NEW DELHI)


2 Dated: 10-2-2012
By:- mehta pradip

You have to pay excise duty on finished goods supplied to bhel under mega power project scheme as per order reported at SANGAM STRUCTURALS LTD. Versus COMMISSIONER OF C. EX., ALLAHABAD 2011(272)ELT 79 (Tri-Del).The exemption is available to Bhel if they manufacture and supply and not to secondary supplier like you.


3 Dated: 10-2-2012
By:- Naveed S

Exemption from payment of C.Excise duty is available.


4 Dated: 10-2-2012
By:- Naveed S

Exemption from payment of Central Excise Duty is available to both i,e. your firm as well to BHEL.

No need for separate PAC is required for you.

 


5 Dated: 11-2-2012
By:- Sandhya Srinivas

Mr. Naveed

 

Is there a notification # or a case law in Excisewhich provides clarity on the exemption being available to sub suppliers as stated by you for Input credit.

 

Thanks

Sandhya


6 Dated: 11-2-2012
By:- Naveed S

Kindly clarify, whether the mega power projects under duty exemption are provided to you under notification no. 6/2002 CE as amended or under Notification No. 108/95 CE as amended, or any other such Notification.


7 Dated: 11-2-2012
By:- Naveed S

Following case laws are in your favour. Let me know if whole copy of the judgement is required.

1. CST LIMITED & ANR. Versus CC & CE, HYDERABAD-I ( 2008 (85) RLT 298 (CESTAT-Ban.)

2 AUTOMATIC ELECTRIC LTD. Versus COMMISSIONER OF CENTRAL EXCISE, MUMBAI  (2004 (178) E.L.T. 524 (Tri. - Mumbai)

3. CATERPILLAR INDIA PVT. LTD. Versus COMMISSIONER OF C. EX., PONDICHERRY (2005 (185) E.L.T. 430 (Tri. - Del.)

4. IBM INDIA PVT. LTD. Versus COMMISSIONER OF C. EX., PONDICHERRY  {(2008 (223) E.L.T. 429 (Tri. - Chennai)}


8 Dated: 11-2-2012
By:- Sandhya Srinivas

PAC issued under Notification no 6/2006 CE amended by 35/2011 . since we have to invoice BHEL without Excise can we take input credit on raw materials and components purchased to manufacture the finished goods to be supplied to BHEL who is the contractor for the power project. This  input credit will be adjusted against other excise liabilties on other despatches we have with Excise to other clients.

 

 

 


9 Dated: 11-2-2012
By:- Naveed S

Yes, of course, you can surely avail canvat credit on raw materials and components purchased to manufacture the finished goods to be supplied to BHEL who is the contractor for the power project.

This  input credit can be utilized against other excise liabilties on other despatches.

Such provision is already available in Central Excise Law.


10 Dated: 11-2-2012
By:- Sandhya Srinivas

Thank you for the clarification provided.


11 Dated: 11-2-2012
By:- Naveed S

Kind attention is drawn to folllowing rule which applies directly to your case :-

Rule 6 of  Cenvat Credit Rule, 2004 - [Obligation of a manufacturer or producer of final products and a provider of taxable service.

(6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either-

           [(vii) all goods which are exempt from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under sub-section (1) of section 3 of the said Customs Tariff Act when imported into India and are supplied,—

                       (a) against International Competitive Bidding; or

                       (b) to a power project from which power supply has been tied up through tariff based competitive bidding; or

                       (c) to a power project awarded to a developer through tariff based competitive bidding, in terms of notification No. 6/2006-CE dated the 1st March, 2006.]

                          


12 Dated: 11-2-2012
By:- Naveed S

The following case law will also make the issue more clearer. Let me know if there is any further clarification is required in the matter.

 

 CESTAT AHMEDABAD( Citation: 2008 (230) E.L.T. 257 (Tri. - Ahmd.))

 


13 Dated: 11-2-2012
By:- NEERAJ KUMAR, RANCHI

yes Ms Sandhya,

You need to include your supplier's name in the certificate issued in this purpose by the project authority.

 


14 Dated: 19-2-2013
By:- Ramakrishna M

Hi all,

in the recent past MOF has extended excise exemption even for Provisionally approved Mega Power projects subject to execution a Bank Guarantee for Excise duty amount and finally such BG shall be redeemed after the final approval of Mega power status with in 36 months.

In this process initially the goods required for projection execution has to be certified by Central Electricity Authority (CEA) thro a PAC and in turn the project developer shall time to time issue such PAC to his vendors for supply of P&M without payment of ED based on BG submitted by the developer to the jurisdictional Excise Authorities as per CBEC  Circular No. 963/06/2012-CX  for all provisional cases. 

A) Would like to understand while issuing PAC by CEA is it required to mention the supplier name also along with list of euqipments to be required for the project, this is because it happens the list of vendors  who supply  the each item / goods would not be finalized at the time  of making application to CEA for PAC.  

B) Can the project owner / developer based on the PAC issued by CEA further issue PAC, after identifying the suppliers and to their sub-suppliers for supply of goods with out payment of ED. 

 

Regards

Ramakrishna / 8978386060

 


15 Dated: 31-7-2014
By:- Mansoor Ali

Mr. Naveed S.

I would like to know whether the refund/rebate of Central Excise Duty paid on Inputs used in the manufacture of Final product supplied to ADB Financed Project under Nfn. No. 108/95 is allowed or not in terms of Para 4.1.3, 8.2.4, 8.3.1.(c) and (d) of FTP.

The problem is there is CENVAT accumulated against the supplies of Capital Goods i.e. Chapter 8504330 (Transformer) made to Power Project financed by ADB under Nfn. No. 108/95, and there is no chance to utlized the same in near future. Is there any procedure available to refund/rebate or otherwise the central excise duty accumalted on account of purchase of inputs.


1

Old Query - New Comments are closed.

← Previous Next →
what is new what is new
  ↓     Latest Happenings     ↓  

Notification: CGST Rate Schedule u/s 9(1) - notifying rates of CGST @ 2.5%, 6%, 9%, 14%, 1.5% and 0.125% on Supply of Goods

Forum: REGISTRETION

Forum: On what Value tax to be deducted at source (TDS)

Highlight: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods. - Notification no. 1/2017 as amended vide notification dated 22-9-2017

Notification: IGST Rate Schedule u/s 5(1) - notifying rates of IGST @ 5%, 12%, 18%, 28%, 3% and 0.25% on supply of goods.

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map || ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version