ED exemption of Boiler

1793 views 3 replies

s. vasudevan

Consultant

39 Points Joined November 2008

Dear All Experts,

We are into manufacturer of boiler. If the buyer of our boiler who is using boiler for creating fire with agro waste or municipal waste, it is exempted from excise duty.

The buyer is asking the boiler, from us with excise duty exemption saying that he is going to use the same with agro waste or municapal waste.. Can we sell without payment of duty? What is the precautions to be taken?

2. Whether the same duty exempted boiler, one of our customer wants to trade the same, i.e. buying and selling. Is it possible?

With warm regards,

Vasudevan

Replies (3)

Rajesh Kumar

Advocate- Tax

7806 Points Joined December 2008

Ask from the buyer exact notification.

Certain goods used for renewable energy is exempted, whether your boiler will fall into that or not can be decided only after reading the exact terms of the exemption notification.

There is another problem If you supply goods under exemption, you have to reverse the cenvat credit taken. Or an amount of 10%, which is more than the excise duty.

In the present circumstances, I ask my clients to avoid such exemption notification, unless until exemption is along with availment of cenvat credit in categories given in Rule 6 of the Cenvat Credit Rules.

CA Vivek

CA CS

71 Points Joined August 2008

hallo sir can u plz. tell me for A.Y. 2006-07 ITR or form 2D will be used. Thanks & Regards Vivek

Rajesh Kumar

Advocate- Tax

7806 Points Joined December 2008

Dear Vivek, I have no idea about returns/form etc. of Income Tax. In fact in Custom, Excise & Service Tax also, I have very less idea about prcedural matters (Do know few thing as I worked for the Custom & Central Excise department for 8 years). I will be able to help you in legal matters in relation to Income Tax or Indirect taxes.

As far as I can remember, I, as an individual filed Saral form only in AY 2006-07. But kindly cross-check with someone dealing in procedural matter.