GOVT NOTIFICATION NO 51/96-CUSTOM DATED 23/07/1996

[JOSEPH MATHEW]

We have received a certificate of registration from IIT Chennai for Excise exemption in terms of Govt Notification no 51/96-Customs dated 23/07/1996 and Central Excise duty exemption in terms of Govt.Notification No 10/97-Central Excise dated 01/03/1997 as amended from time to time.

My query is this certificate says that we have not to pay excise, however our customs says we have to pay @6% excise duty. Kindly clarify,.

regards

Joseph Mathew

AI Summary

Excise exemption for research goods hinges on notification scope and recordkeeping; import duties and credit reversal still apply.
Imported goods for research remain subject to customs duty under Notification 51/96-Cus while domestically procured goods used for research may be exempt from central excise under Notification 10/97-CE; an institutional certificate does not eliminate customs duty. For excise-exempt final goods, separate records must be maintained, inputs used in exempted products are not eligible for CENVAT credit, and where conditions are not met the law requires reversal of credit or payment calculated on the assessable value.