Excise duty exemption - 12/2012 & 6/2006 Cex notifications

[Srivatsan Krishnamachari]

Dear Experts,

I wish to know, is material falling under chapter no.94 of CEX are exempt from payment of supplies made to mega power projects against ICB. Dept denying exemption from excise duty payment saying it is not blanket permission.

Supplies made against notification nos 6/2006 CEX dtd. 01.03.2006 (sl.no.91) & 12/2012 CEX dtd.17.03.2012 (sl.no.338,339)

Please provide your opinion, if possible with Case laws if any.

Thanks for your support.

Regards

Srinivas

[KASTURI SETHI]

Pl. write complete name and Chapter/heading/sub-heading of your product so as to enable to examine.

[Rajagopalan Ranganathan]

Sir,

Sl. No. 338 and 339 prescribes 'Nil' rate of duty for excisable goods falling under 'Any Chapter' of the first schedule to Central Excise Tariff Act, 1985 subject to the conditions mentioned at Sl. No. 43 & 44 of Annexure appended thereto. Therefore the contention of the Department that it is not unconditional exemption is correct. Kindly go through the conditions and if you satisfy the same please take up the matter again with the department regarding your eligibility for the exemption.

[KASTURI SETHI]

Yes. I agree with Sh.Rajagopalan Ranganathan, Sir.

[Srivatsan Krishnamachari]

Dear Sir,

Our product is falling under chapter no.9406 00 99...pre-fabricated buildings and conditions nos.43 & 44 are satisfying.

We have received exemption certificates as specifide in the chapter numbers.

Kindly provide your comments.

Thanking you,

Srinivas

[Rajagopalan Ranganathan]

Sir,

Since you have complied with provisions of exemption Notification you can take up the matter with Departmental Authorities again. Still they have some objection request them to issue a speaking order rejecting your request so that you can agitate the matter in appeal.

AI Summary

Excise duty exemption conditional on meeting notification eligibility; compliance and certificate support claiming relief. Exemption under Notification Nos. 6/2006 and 12/2012 for supplies to mega power projects is conditional; nil rate entries apply only if the supplier satisfies the Annexure conditions and holds the prescribed exemption certificate. Classification of the goods under Chapter 94 (prefabricated buildings 9406 00 99) and documented compliance supports claiming the exemption; a departmental denial without a speaking order should be pursued through appeal.