PROCUREMENT OF MATERIALS WITHOUT ED

[SENTHIL KUMAR]

Dear Sir

I am one of the subcontractor to M/s.BHEL,TRICHY doing fabrication works of Boiler components for various power projects.

Now BHEL insists us to send the finished components to MEGA POWER PROJECT SITE WITH IN INDIA(EX.GADARAWARA, DARLIPAALI, NEYVELI ETC.,) which are excise duty exempted projects.

Now we are despatching the materials to site without ED but procuring raw materials(ex.STEEL) with ED.

01. WHETHER BHEL CAN ISSUE US PAC (PROJECT AUTHORITY CERTIFICATE)

02. IF PAC ISSUED WHETHER WE CAN PROCURE RAW MATERIALS WITH OUT ED.

Kindly clarify us above said points.

Regards

S.SENTHIL KUMAR

AI Summary

Subcontractor Seeks Duty-Free Procurement Clarification for Raw Materials; PAC Issuance Confirmed for Exempt Projects A subcontractor for a major company is seeking clarification on the procurement of materials without excise duty (ED) for projects exempt from such duties. The subcontractor is currently sending finished components to mega power project sites without ED but is purchasing raw materials with ED. They inquire whether the main company can issue a Project Authority Certificate (PAC) to allow duty-free procurement of raw materials. A respondent confirms that the main company can issue a PAC, enabling the subcontractor to procure materials without ED. The respondent also explains the process of using PAC for duty-free procurement and suggests utilizing cenvat credit for duty-paid goods.