Exemption of Excise on Ethanol from Local Vandor

[Asked by Guest]

Dear Sir,

Our unit is Established IN SEZ, & We are manufacturer of API Bulk drug, and its a new unit and first time going to purchase Ethanol from local vendor for manufacturing API and using as raw material.

The questing is, is there Imposed Excised duty? if exmpted, which section or rule or any notifications?

Pl provide notification.

If there excise duty ..what is the percentage?

Pl reply,

Thanks..

Suresh

[KASTURI SETHI]

Ethanol falls under HSN 2207 20 00 attracting GST @18% (9+9).

Case law regarding classification is given below:

2016 (340) E.L.T. 535 (Tri. - All.) = 2016 (8) TMI 386 - CESTAT ALLAHABAD BAJAJ HINDUSTHAN SUGAR LTD. Versus COMMISSIONER OF C. EX., LUCKNOW

 

 

AI Summary

Ethanol classification under GST confirmed for local supply to SEZ manufacturer; classification supported by cited tribunal authority.
The advisory addresses whether excise duty applies to ethanol bought locally for use as raw material by an SEZ manufacturer and states that ethanol is classified under HSN 2207 20 00 and treated under GST at the standard rate for that commodity, with a tribunal decision cited in support of the classification; the reply does not provide a separate excise duty rate or exemption notification.