Central Excise Exemption Notification no. 42 / 2015 which exempts the Excise Duty on Methanol -

[george thomas]

Dear Sir,

We wish to bring your kind notice that with reference to the Central Excise Exemption Notification no. 42 / 2015 which exempts the Excise Duty on Methanol -

We could not get any indigenous manufactures of the Methanol who can charge the Central Excise duty. To the best of our knowledge we could find the suppliers who import the methanol and Invoice us as first / second stage dealer by passing-on the actual import duties paid by them at the time of original Import i.e., the applicable Customs duties like BCD 7.5%,CVD - 12.5% and SAD - 4% paid at the time of Import.

​I approached our Central Excise Department to issue exemption permission for the portion of CVD to be charged in the Dealer Invoice. However, they are mentioning that the Nt. 42 is a CE Notification and not applicable to any taxes charged ​and collected under the Customs Act and hence we can not avail any benefit for CVD on account of CE Notification No. 42 / 2015.

In addition to the above the suppliers are mentioning that they have to charge and collect the CVD from us (irrespective of the exemption permission if any) because it is collected on account of Actual Reimbursement of Taxes already paid by them to the Customs and if it is not charged and collected from us it will an additional burden to them.

 

In this scenario we seek your kind advise to proceed further.

AI Summary

Clarification on Excise Duty Exemption for Methanol: CVD Not Covered, Exemption Requires Bond/Guarantee until March 31, 2016. A discussion on the Central Excise Exemption Notification No. 42/2015 highlights the complexities of excise duty on methanol. The original query concerns the inability to find domestic methanol manufacturers who charge excise duty and the issue of CVD charged by importers. The Central Excise Department clarified that the exemption does not apply to CVD under the Customs Act. Respondents noted that CVD is applicable unless the goods are unconditionally exempt in India, with exemptions only claimable by importers. Questions were raised about the need for a bank guarantee or bond to avail of the exemption, which is valid until March 31, 2016.