EOU~ Additional Location

[Sanjay Singh]

Hi,

Need clarity & rulings on

1) Whether Wind Turbine power generation plants established out side the EOU location can be included in the existing LOP as an additional location?

2) Applicability of prevailing taxes on sale of surplus power generation by the wind mill ffrom the EOU units to the DTA

[ABHISHEK TRIPATHI]

Dear Sanjay Sir,

A.1

Your Designated Officer may permit to include additional location in LOP on the condition (i) no change in other terms and conditions of approval is envisaged and (ii) that new location is within territorial jurisdiction of DC / Designated Officer.

If you stuck at point (ii) i.e., your additional location is outside the territorial jurisdiction of DC then you may approach to Board of Approval (BoA).

A.2

You may sell surplus power in DTA on payment of duty on consumables and raw materials used for generation of power. i.e., the EOU unit selling power has to pay duty on the diesel used for power generation.

AI Summary

Additional location in LOP allowed if within territorial jurisdiction; otherwise approach Board; duty payable on diesel for surplus power. Inclusion of an additional wind-turbine location in an existing LOP is permitted if no change to other approved terms is envisaged and the new location falls within the Designated Officer's territorial jurisdiction; if outside that jurisdiction, approval must be sought from the higher approval forum. Sale of surplus power to the DTA requires payment of duty on consumables and raw materials used in generation, specifically duty on diesel used for power generation.