Liability of NCCD

[UTKARSH SHIKHAR]

Company has opted for area based exemption under notifiation no. 50/2003 CE dated 10.06.2003. Would the company still be liable to pay NCCD if the finished goods are covered under Schedule VII?

[Mukesh Kumar]

NCCD is nothing but a duty of central excise levied in addition to any other duties of excise leviable on the goods [See schedule of NCCD]. Notification no. 50/2003 grants exemption from whole of duties of excise and additional duties of excise. Therefore, you may claim the beneift of exemption to NCCD also, if your goods exempt from basic excise duty under notifiation no. 50/2003 CE dated 10-6-2003.

AI Summary

NCCD liability excluded where goods are exempt from basic excise duty under an area-based exemption.
NCCD is an additional duty of central excise. Notification No. 50/2003 grants exemption from the whole of duties of excise and additional duties of excise under the area based scheme; therefore, when finished goods are exempt from basic excise duty under that notification, the exemption extends to NCCD and may be claimed for those goods.