Excise duty is applicable on government supply of material

There is no excemption is availabe only supply goods to deffence excempted.

In normal course there is no general exemption. A few research, defense instiutions have been exempted if relevant CERTIFICATE available. If no certificate available , exemption would be denied. Important toget the certificate before dispatch as many goivt organisations finally do nto give the certificate. The specific notification with the attendant conditions have to be complied.

It should be remembered that goods removed under exemption, cenvat credit of inputs and input services used is not available. This is a cost unlike the taxable supplies to the manufacturer.