TaxTMI 
TaxTMI 
I have read somewhere that energy generated through windmill and its sale to state board of electricity is exempted from Central Excise but i could not get that note. therefore, requesting expert your input in this regard. Secondly whether it will attract VAT or it is exempt in state law also.
Excise duty on windmill energy sale to state board of electricity
23 Oct 2015 
6 Replies 
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Classification of electrical energy: tariff heading leaves duty rate blank, so windmill generated energy not presently leviable to central excise.
Electrical energy is referred to the tariff sub heading for electrical energy but the duty column is blank; consequently, electrical energy generated by any mode, including windmills, is treated in the discussion as not chargeable to central excise. One view holds windmill generated electricity is not covered by Chapter 27 and is neither excisable nor exempt, while cited judicial authorities on manufacture and excisability are identified as relevant to determining taxability. State VAT applicability remains unaddressed in the discussion. (AI Summary)
Electrical energy is referred to the tariff sub heading for electrical energy but the duty column is blank; consequently, electrical energy generated by any mode, including windmills, is treated in the discussion as not chargeable to central excise. One view holds windmill generated electricity is not covered by Chapter 27 and is neither excisable nor exempt, while cited judicial authorities on manufacture and excisability are identified as relevant to determining taxability. State VAT applicability remains unaddressed in the discussion. (AI Summary)