Notification

[Purvi Desai]

Shall we charge excise duty 6% on invoice against excise exemption certificate 10/97 form

[Rajagopalan Ranganathan]

Madam,

Notification No. 10/97-CE dated 1.3.1997exempts goods specified in column (3) of the Table below and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon which is specified "-in the said Schedule, when supplied to the institutions specified in the corresponding entry in column (2) of the said Table, subject to the conditions specified in the corresponding entry in column (4) of the said Table.

Therefore there is no question of payment of duty on the excisable goods cleared by you under the said notification. Therefore the question of charging excise duty @ 6% does not arise.

AI Summary

Excise duty exemption applies to specified supplies under the notification; such exempt supplies are not liable to excise duty.
Notification No. 10/97-CE exempts specified goods from the whole of excise duty when supplied to the listed institutions subject to the stated conditions; supplies cleared under that notification are not leviable to excise duty and charging excise duty on such exempt clearances is not applicable.