CLEARANCE TO R & D UNIT

[SURYAKANT MITHBAVKAR]

We are manufacture of Pharmaceutical machinery. Our one of customer having R & D unit registered with Department of Scientific & Industrial Research. He has submitted copy of registration certificate alongwith undertaking in prescribed format as per condition laid in Notification No.10/97 dt.01.03.97.

Can we clear goods to them without charging excise duty on basis of the above document or we have to follow other procedure.

Pl. advice

[YAGAY and SUN]

If your customer duly fulfills the conditions mentioned in the Notification No. 10/97-CE dt 01.03.1997 or description of the goods or name of the institution then you can sell the goods without payment of duty.  While issuing invoice to your customer please mention the Notification number.  In the Excise Return please select this notification number that you had removed goods to an Institution without payment of Central Excise Duty.

[Yatin Bhopi]

Excise duty is not payable. But i think this clearance will fall under exempted clearance and will attract Rule 6 of CCR 2004.

AI Summary

Exemption for R&D units: sales to registered research institutions qualify for duty-free clearance when prescribed conditions are met.
Sales to a research and development institution registered with the Department of Scientific & Industrial Research may be made without charging excise if the purchaser meets the notification's conditions and furnishes the prescribed undertaking; the supplier must cite the notification on the invoice and select that notification in the excise return, and treat the dispatch as an exempted clearance under the Central Excise procedural rules.