Excise duty on electricity

electricity generation and sale is governed by Central Province and Berar Electricity Duty Act, 1949, associated with state laws, and excise has nothing to do with it. 

Excisable goods are defined under Section 2(d) of the Central Excise Act, 1944 as “goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 as being subjected to a duty of excise and includes salt”. Electricity is though specified in the CETA under Tariff Item 2716 00 00 but the same is presently not being subjected to any duty of excise and, therefore, it does not come under excisable goods. Since it is not excisable, the question of being chargeable to NIL rate of duty or being exempted goods does not arise.

Jeevan Kumar Jain

Thank you Jeevan sir.

Hi,

According to my opinion

Input includes even electricity and so if the electricity is used within the factory and used for production the excise duty can be availed and can be set off (Whether contained in final product or not)

Regards

Narayan

Mr. Narayan,

Your answer is not relavant in connection with the query.

Regards,

Jeevan Jain