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Excise Exemption Notification # 6/2006 Sl.No 91

This query is : Resolved 


Guest (Querist)
Hi All.
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?
CS Venkatesh.

Notification no 6/2006, sl: 91, prescribes for removal of duty free goods from place of removal for specified use against International competitive bidding.Certificate from Chief Executive officer of project authority as well from the district magistrate/district collector/ deputy commissioner, certifiying use of the goods for the project is required.
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.


Guest (Querist)
Will you please look on the condition number 19 of serial number 91 of excise exemption notification number 6/2006? It says, "if the goods are exempted 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 Section 3 of the said Customs tariff act when imported into India.

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.

If the order is received under ICB, the supply will be exempt from excise duty under notification No. 06/2006-CE dated 01.03.2006 S.No. 91 . As per condition No. 19 of of this notification, goods imported at nil customs duty will be used in manufacture of such excisable goods on which you will enjoy excise exemption.

Therefore you need to obtain the License from the DGFT to import duty free for subsequent use.

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