Exemption from Excise

[DEEPAK SHARMA]

Dear Forum,

is there any exemption on clearance of goods from duty paying unit to agriculture industry, or goods is a part of a machine, which ultimate use is in agriculture, can clear without payment of duty.

[Vijay kumar]

The description of goods is not mentioned in the query. Anyway, Nofn.3/2004-CE dt.8.1.2004 grants exemption to machinery, instruments, equipments and pipes used in water supply plants for agriculturual and industrial use. Apart from this, you may go through general exemption Nofns. 3/2006, 4/2006, 5/2006, 6/2006-CE dt.1.3.2006 as amended from time to time so as to ascertain the availability of exemption for your goods.

AI Summary

Excise exemption for machinery used in water supply permits duty-free clearance to agricultural and industrial users. Query whether clearance to agricultural industry or of machine parts for agricultural use is excise-exempt. Notification No.3/2004-CE exempts machinery, instruments, equipment and pipes used in water supply plants for agricultural and industrial use. The general exemption Notifications of 1.3.2006 (Nos.3/2006-6/2006) as amended should be examined to ascertain exemption for specific goods; product description and classification are required for definitive application.