about not charging duty on the goods after exemption limit

[MEHUL ASHAR]

Respected Sir,

                          One of my clients is taking benefit of notification, no. 8/2003 exemption limit of 1.5 crore, as now he has  cross the limit he started sale of goods as one of his customers has told him that they are exempted unit & he can't charge duty in invoice as they have the letter of state finance ministry that no excisable unit can charge duty on them, is it possible. Please reply

AI Summary

Area based exemption may allow duty free removals but suppliers must verify exemption before stopping duty charges.
Ask the purchaser to produce the exemption letter; if they operate under an Area Based Exemption they may receive removals without payment of duty as permitted by the notification, but the exemption does not apply to the supplier's inputs, components, raw materials or tools, which will continue to bear central excise. Verify purchaser status and notification terms before altering invoicing or ceasing to charge duty.