Exemption availble to private company manufecturing readymix.

[Anil Jangid]

If Private Company is in business of manufecturing of ready mix concrete and delivers to its client office. If the clients of that company are only Government bodies like local authorities , Government Projects. Then in that case is there any exemption to that company in Paying Excise duty? And in the same way if the company is subcontractor to goverment bodies i.e it is providing ready mix concerete to contractors of goverment. In that case is there any exemmption to that companyin paying excise duty? Please tell me your reply with supporting provisions as soon as possible.

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion it will not be exempted unless exemption given in Notification.

[Rajagopalan Ranganathan]

Sir,

There is no exemption available to the manufacturer of ready mix concrete. He has to pay excise duty subject to the provisions of Notification NO. 8/2003-CE as amended (SSI Notification). Under this Notification if value of clearance in the previous financial year did not exceed the limit of 1.5 Crores or during current financial year the value of clearance is not likely to exceed the of 1.5 Crores the manufacturer need not pay any duty.

[DR.MARIAPPAN GOVINDARAJAN]

Thank you Sri Rajagopalan Sir, I have got clarified from your explanation.

AI Summary

Exemption limited to notification conditions; supplying ready mix concrete to government does not by itself remove excise liability.
Supply of ready mix concrete to government bodies or as a subcontractor does not by itself exempt a manufacturer from excise duty; exemption arises only where expressly provided by notification. Under the SSI notification framework, a manufacturer whose clearances fall below the prescribed value threshold in the prior year, or are not likely to exceed that threshold in the current year, may be relieved from duty; otherwise duty is payable.