Excise Rate on winmill Power Generation

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Girish (Querist)

02 June 2010 Sir,
Pls. tell me excise rate on windmill Power Generation and his Tarrif code and reference of above information eg. excise tarriff no or excise act section no. etc.
please inform me.
Thank you

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

03 June 2010 question not specific. Major parts of windmill are exempted as there is e\nergy saving and the same is renewable under central excise. Specific items whether falling withint the deifntion should be confirmed.

Girish

Girish (Querist)

03 June 2010 Thank for reply
sir
Pls. tell me excise applicable on POWER (generated by windmill, no windmill parts). The power generation by windmill is production process ? if Power generation is Production process as per excise act pls. tell me the tax rate & tariff code on Power generation.
Power (Electric Power).

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

21 July 2024 Excise duty is not applicable on electricity generated, including from windmills, under the Central Excise Act, as electricity is not considered a "goods" under the excise laws.

Here's a breakdown of the relevant points:

1. **Electricity Generation Not Covered**: Electricity is specifically excluded from the definition of "goods" under the Central Excise Act. Therefore, any power generated, including from windmills, does not attract excise duty.

2. **Definition of Goods**: The Central Excise Act defines "goods" as any kind of movable property other than actionable claims, money, and securities. Since electricity is not movable property and does not fall under any of the exclusions mentioned, it does not qualify as "goods" for the purpose of excise duty.

3. **Tax Rate and Tariff Code**: Since excise duty does not apply, there is no specific tax rate or tariff code applicable to electricity generation under the Central Excise Act.

Therefore, in the context of excise duty under the Central Excise Act, electricity generated by windmills or any other means is not subject to excise duty. If you have specific questions regarding taxation or regulations related to electricity generation and distribution, it would be advisable to consult with a tax expert or legal advisor who specializes in energy law or indirect taxation in your jurisdiction.

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