We supply our product to clients like BHEL executing mega power projects. The purchase orders are given on a Excise Exempt basis and Project Authority Certificate (PAC) is provided to us with our name as a supplier to enable us to invoice the client without Excise.
How do we obtain the same benefit ( excise/customs exemption) when we in turn procure inputs( both domestic and imported) from our suppliers?. Do we need to ask our client to include our supplier names in the original PAC that they provide or a seperate PAC has to be obtained and if so by whom or do we need to approach our Excise Jurisdiction for the same. Kindly clarify.
Power Project Suppliers Debate Excise Duty Exemptions, CENVAT Credit, and Refunds; Notification 6/2006 CE Discussed A company supplying products to power projects like BHEL seeks guidance on obtaining excise/customs duty exemptions for inputs procured domestically and internationally. The discussion reveals differing opinions: some assert no exemption is available for secondary suppliers, while others argue that exemptions can be utilized under specific notifications like 6/2006 CE. It is suggested that suppliers should be named in the Project Authority Certificate (PAC) for exemption eligibility. The conversation also touches on the possibility of availing CENVAT credit for inputs used in manufacturing goods supplied to such projects and the procedures for refunding accumulated excise duties. (AI Summary)
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