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

Wind Turbine Plants Can Be Added to LOP; Selling Surplus Power to DTA Requires Duty on Diesel Used A query was raised regarding the inclusion of wind turbine power generation plants outside the Export Oriented Unit (EOU) location in the existing Letter of Permission (LOP) and the tax implications on selling surplus power to the Domestic Tariff Area (DTA). The response clarified that additional locations could be included in the LOP if they remain within the jurisdiction of the Designated Officer. If outside, approval from the Board of Approval (BoA) is necessary. For selling surplus power to DTA, duties must be paid on consumables and raw materials, specifically diesel used in power generation.