Excise Duty on Solar lamp exempt from 12.5% to Nil

[MAYA KARPE]

Good Morning Sir,

Excise Duty on solar lamp is exempt from 12.5% to Nil. Please confirm the Notification & Tariff Heading No of the same.

Thanks & Regards

Maya karpe

[MADAN RAHEJA]

Dear SirIn terms of S.No. 332 of Notification 12/2012-CE, Non-conventional energy devices or systems specified in List 8, falling under any chapter of Central Excise Tariff, are carrying Nil duty. S. No. 18 of List 8, earlier mentioned item Solar lantern. However, in this year’s budget, said entry was amended vide notification 12/2016-CE and now reads as “Solar lantern or Solar lamp”. In my view this amendment is of clarificatory nature as terms Lantern and Lamp denote same thing. As regards classification it is 9405 50 40 of Central Excise Tariff

[MAYA KARPE]

Thanks Sir for reply

Maya

[KASTURI SETHI]

Sh.Madan Raheja Ji,

EXCELLENT REPLY INDEED.

[Guest]

Thank you for the useful response. This should hopeful stimulate the market. Lantern/lamp seems clear - but there are a number of smaller systems (eg. up to a 10W panel, or even max 100W) that are coming on to the market. They're a great solution - but will they also be tax exempt? I can't find anywhere that clearly defines 'lantern/lamp' and whether these systems may be included. Any ideas? Thanks in advance.

AI Summary

Excise duty exemption on solar lanterns and lamps clarified; tariff classification indicated and scope for small systems questioned. Nil excise duty applies to specified non-conventional energy devices listed in the notification schedule; the List entry formerly described as Solar lantern was amended to Solar lantern or Solar lamp, reflecting a clarificatory terminology change and maintaining Nil duty. The noted tariff classification for such lighting items is 9405 50 40. Questions persist whether small integrated solar lighting systems without a clear statutory definition of 'lantern/lamp' fall within the exemption, creating scope uncertainty for market participants.