Steam generation from biomass briquettes

[AJAY SINGH]

Please any one give opinion that steam generation from biomass briquettes at clients location is excisable or not

[Ganeshan Kalyani]

Sir, Steam generated is exciseable but not dutiable. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Do you know sub-heading of Central Excise Tariff Act ? If so let me know. Steam generation from biomass briquettes.

[MUKUND THAKKAR]

Sir,

chapter heading 44013900 and it is excisable 12.5% if I am wrong please correct me.

[KASTURI SETHI]

Sh.Ajay Singh Ji,

I endorse the view of Sh.Mukund Thakkar, Sir. For steam generation there is another sub-heading no.2701 20 90but in my view also Chapter/sub-heading no. 4401 3900 is correct here and it attracts CE duty.

[Ganeshan Kalyani]

Sir, whether steam is removed / sold or it is used captively. The querist is requested to reply please. Thanks Sri Mukund Sir and Sri Kasturi Sir for enriching my knowledge. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

If used captively it would be exempted vide Notification No.67/95-CE dated 16.3.95 as amended latest vide Notification No.19/14-CE dated 11.7.14

[AJAY SINGH]

Respected kasturi sethi ji

If biomass briquettes taken to client premises and steam is generated with the use of that briquettes on Client location , and that steam is further used by that Client for there purpose as a fuel in place of coal

Then what will be the case , person who is generating the steam is issuing invoice as a sales of xxx unit of steam

Please help me thanks

[KASTURI SETHI]

Sh.Ajay Singh,

Such steam is used by the client as a fuel in place of coal. For what purpose ? Any excisable goods (dutiable) produced from that steam ? If so, steam is exempted. If not, duty on such steam is payable.

[Ganeshan Kalyani]

Sir, when you say at client place did you mean you have sold the biomass Bridgette ? Excise duty on Biomass briquette is non-exciseable. Further if your client generates the steam and removes / sells it then excise duty is applicable as rightly replied by Sri Kasturi Sir. Thanks.

AI Summary

Excisability of steam: captive use and exemption determine whether duty applies when steam replaces coal as fuel.
Whether steam generated from biomass briquettes at a client's premises is excisable was debated: contributors observed that steam can be characterized as excisable though opinions differed on dutiability and tariff classification. Biomass briquettes sold to a client were treated as non-excisable. The forum emphasized that captive use may attract exemption under the relevant notification framework, and that duty liability depends on whether excisable goods are produced from the steam or whether it is removed/sold.