Goods supplied to Mega Power Project Under ICB

[meil megha]

We have got an Sub-contract Order from one of the EPC Contractors and the Project is for setting up of Thermal Power Project which is a Mega power project declared by the Govt of India. The EPC Tender is being finalized under ICB Mode, under these circumstances we would like to get clarifications from your good-self on the following issues.  1)      The Sub-contract work given to us is Supply and laying of MS Pipes. 2)      We are in the process of applying for advance authorization for procurement of raw materials locally with Nil duty and the authorization will be invalidated in the name of Raw Material Manufacturer i.e, MS Plates/Coils.    3)      The raw material which the supplier is giving to us is being converted into Pipes at our Manufacturing unit 4)      In our manufacturing unit we are not separately maintain the records for dutiable and exempted  goods.  5)      We wanted to clear the pipes under Notification no. 12/2012 CE Query:-  Under the above circumstance, we request your good-self to kindly advise us as per Notification no. 12/2012 CE against this notification which serial number mentioned oned for clear the  Pipes  from our Factory with Nil duty or by any other mode.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

AI Summary

Duty exemption for supplies to mega power projects requires advance authorization and segregated records to obtain nil-duty clearance. Entitlement to nil-duty clearance for pipes supplied under an ICB EPC contract for a mega power project depends on a valid advance authorization for local procurement, correct beneficiary naming of the authorization, compliance with the applicable exemption notification for factory clearance, and fulfillment of recordkeeping requirements at the subcontractor's manufacturing unit where conversion occurs.