Excise duty on windmill energy sale to state board of electricity

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..... Excise duty on windmill energy sale to state board of electricity
Query (Issue) Started By: - Ganeshan Kalyani Dated:- 23-10-2015 Last Reply Date:- 24-10-2015 Central Excise
Got 6 Replies
Central Excise
I have read somewhere that energy generated through windmill and its sale to state board of electricity is exempted from Central Excise but i could not get that note. therefore, reques .....

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..... ting expert your input in this regard. Secondly whether it will attract VAT or it is exempt in state law also. Reply By Rajagopalan Ranganathan: The Reply: Sir, Electrical Energy is classifiable under sub-heading No. 2716 00 00 of Central Excise Tariff Act, 1985. However rate of duty leviable on such electrical energy is not indicated in the tariff. Therefore electrical energy generated by what .....

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..... ever mode is not chargeable to central excise duty. As far as VAT is concerned I am not conversant with VAT Law. Reply By Ganeshan Kalyani: The Reply: Thanks for your information Sir Reply By KASTURI SETHI: The Reply: Mr. Ganeshan Kalyani Ji, Electrical energy generated through windmill is not covered under Chapter 27 of Central Excise Tariff Act. It is neither excisable goods nor exempted. Tha .....

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..... t is why column of rate of duty against Sub-heading No.2716.00.00 no. has been left blank. Chapter 27 covers electrical energy produced from mineral fuels, mineral oil etc. This issue has already been decided by the Hon'ble High Court, Allahabad in the case of Gularia Chinni Mills Vs. UOI reported as 2014(34)STR.175/Allahabad = 2013 (7) TMI 159 - ALLAHABAD HIGH COURT. Pl.see para 26 of the jud .....

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..... gement. Reply By KASTURI SETHI: The Reply: The High Court judgement has been affirmed by the Hon'ble Supreme Court in the case of DSCL Sugar Ltd reported as 2015(322)ELT/769/SC = 2015 (10) TMI 566 - SUPREME COURT interpreting the manufacturing process. This judgement does not touch 'Electrical Energy' but it covers it under manufacturing process. It touches excisability and manufactu .....

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..... re of bagasse. However, it is relevant in determining excisability and manufacture of electrical energy. Reply By Ganeshan Kalyani: The Reply: Thanks for your valuable inputs. As always your replies are instant and to the point. Reply By KASTURI SETHI: The Reply: Welcome Sir.
Discussion Forum - Knowledge Sharing .....

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