Excise Exemption Notification # 6/2006 Sl.No 91
We are supplying goods to NTPC under excise exemption notification number 6/2006 (T) vide serial number 91 subject to condition # 19 . One of the conditions of this notification, the products also exempt from customs for availing the excise exemption. While referring the customs notification # 21/2002 (T) vide serial number 400 subject to condition # 86, it says only specific chapter head i.e., Project Import (9801) but not for all the chapter head of customs. We are fall under the other chapter head of customs; i.e., 8537; Can you help on this, how NTPC give excise exemption to its vendor not fall under the customs chapter head 9801? Otherwise vendor need to claim the excise benefit under expert incentive method? i.e. Pay the excise duty and claim through DGFT?
Exemption is not provided by project authority eg: NTPC but by the Finance Ministry fo specified projects.
Alternatively,goods can be removed on payment of duty and refund obtained from DGFT as project export.
We need to substantiate the customs notification to the department; if the goods are imported, it should be exempted from customs tariff act, hence I need under which customs notification it will exempted. If I apply the customs notification 21/2002 vide serial number 400, its applicable only for customs chapter head 9801. The condition will be subject matter but the question is chapter head of the product applicability. If we claim this customs notification for excise then the products fall under 9801 whereas our products are fall under in customs 8537.
Therefore you need to obtain the License from the DGFT to import duty free for subsequent use.