Eligibility of Notification No.067/95 or Exemption of Intermidiate Goods Used for Supply of Goods under Notification No.12/2012 Against ICB

[Chetan Pawar]

Dear All,

We are supplying of Goods which was exempted under against ICB . For this supply is their any duty liabilities comes for intermediate goods used for the Exempted Goods or are we eligible for exemption under notification no.067/1995.

Thanks & Regards,

Chetan Pawar

[Rajagopalan Ranganathan]

Sir,

The first proviso to Notification No. 67/95-CE dated 16.3.95 states that "Provided that nothing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of the duty of excise or additional duty of excise leviable thereon or are chargeable to nil rate of duty. Therefore since your final product cleared is exempted you have to pay duty on the intermediate product.

[Chetan Pawar]

Sir,

We are using finish Goods in other FG as intermediate not a input. Which FG we are using, the same is Exempted and which we have prepared is also exempted. so in that case duty liabilities is come or not?

[SHAHID HASHMI]

Sir,

Please go through the Tribunal decision in the Case of M/s. Thermo Cables Ltd. Vs CCE, 2013 (292) ELT 412 = 2012 (12) TMI 942 - CESTAT BANGALORE and M/s. Bharat Aluminium Ltd. Vs CCE, 2014 – VIL – 72 – CESTAT – DEL – CE. on similar issue.

[Arti Gupta]

Proviso of Notification No. 67/1995 is not applicable where the goods are cleared by a manufacturer of dutiable and exempted final products, after discharging the obligation prescribed in Rule 6 of the CENVAT Credit Rules. Further, as per Rule 6(6)(vii) of CCR, Rule 6(1) to (4) is not applicable if the goods are supplied to ICB project. Accordingly manufacturer may take cenvat credit of Excise duty paid on inputs used for goods cleared against ICB projects.

Hence, Excise duty Exemption under Notification No. 67/1995 shall be available on intermediate goods used for exempted Final goods supplied against ICB project.

AI Summary

Eligibility of Excise Duty Exemptions on Intermediate Goods for ICB Projects under Notifications No. 67/1995 and 12/2012 A discussion on the eligibility of excise duty exemptions under Notification No. 67/1995 for intermediate goods used in the supply of exempted goods under Notification No. 12/2012 against an International Competitive Bidding (ICB) project. The initial query questions duty liabilities on intermediate goods. One response clarifies that duty is payable on intermediate goods if the final product is exempt. Another points to tribunal decisions for similar cases. A final reply notes that the proviso of Notification No. 67/1995 is not applicable when goods are supplied to ICB projects, allowing manufacturers to claim CENVAT credit on inputs.