PROCUREMENT OF MATERIALS WITHOUT ED

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..... PROCUREMENT OF MATERIALS WITHOUT ED
Query (Issue) Started By: - SENTHIL KUMAR Dated:- 21-12-2014 Last Reply Date:- 21-12-2014 Central Excise
Got 3 Replies
Central Excise
Dear Sir I am one of the subcontractor to M/s.BHEL,TRICHY doing fabrication works of Boiler components for various power projects. Now BHEL insists us to send the finished components to MEGA POWER PROJECT SITE WITH .....

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..... IN INDIA(EX.GADARAWARA, DARLIPAALI, NEYVELI ETC.,) which are excise duty exempted projects. Now we are despatching the materials to site without ED but procuring raw materials(ex.STEEL) with ED. 01. WHETHER BHEL CAN ISSUE US PAC (PROJECT AUTHORITY CERTIFICATE) 02. IF PAC ISSUED WHETHER WE CAN PROCURE RAW MATERIALS WITH OUT ED. Kindly clarify us above said points. Regards S.SENTHIL KUMAR Re .....

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..... ply By Naveed S: The Reply: 1) Yes 2) Yes Reply By SENTHIL KUMAR: The Reply: thank you mr. naveed. But could u pl elaborate Is BHEL competent to give us PAC. BHEL is the equipment supplier to the Mega Power Project. We are one degree lower, we supply to BHEL components which form part of their final product. Can BHEL give PAC to us, since we are in the value chain? Secondly, with that PAC, .....

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..... if i produce the PAC, will the supplier of materials supply to me without Excise Duty? Could you pl elaborate onthe above with some details? Regards Senthilkumar Reply By Naveed S: The Reply: Sir, The purchase orders shall be given by BHEL on an Excise Exempt basis and Project Authority Certificate (PAC) shall also be provided to you with your name as a Supplier to enable you to invoice the .....

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..... client directly without Excise. Based on the above documents you can procure duty free goods, else it would be appropriate to purchase duty paid goods and subsequently clear the goods without payment of duty. The cenvat credit availed may be utilized for the purpose of clearance of duty paid goods.. Since companies like BHEL are regularly supplying goods under various exemptions including Noti. .....

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..... No. 108/95 CE and also procuring goods from various sub contractors/ vendors since decades, therefore they are well aware of the rules and procedures and they shall guide you in the matter right from purchase order stage to clearance of goods.
Discussion Forum - Knowledge Sharing .....

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