TaxTMI 
TaxTMI 
Notification No. 56/2002-C.E., and 57/2002-C.E. both dated 14-11-2002 - Jammu and Kashmir — Exemption to specified goods — Refund of duty paid in cash — Clarifications
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.... (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Notification No. 56/2002-C.E., and 57/2002-C.E. both dated 14-11-2002 Notification No. 56/2002-C.E., dated 14-11-2002 exempts excisable goods, with a few exceptions, when cleared from a unit located in specified areas in the State of Jammu & Kashmir (J&K). Similarly, Notification No. 57....
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....anufacturer is first required to pay the excise duty and thereafter, whatever is paid in cash is to be refunded. It is also intended that the user of any input or capital goods on which such exemption has been availed should get the full Cenvat credit including the portion of duty refunded to the manufacturer of such input or capital goods. For this purpose, Cenvat Credit Rules, 2002 have been ame....
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....likely to be a delay in verification of the refund claims. Any excess or shortfall in case of refund allowed on provisional basis may be adjusted in the subsequent refund claims. Considering the fact that verification of refund claims basically involves checking of duty paid in cash, in most cases, it should be possible to allow refund by the 15th of the subsequent month. The Board is of the view ....
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....The exemption under these notifications applies to new units set up on or after 14-6-2002 or to the existing units undertaking substantial expansion by way of increase in installed capacity by not less than 25% on or after 14-6-2002. Normally, if a unit has undertaken substantial expansion in capacity, it would utilise the expanded capacity and not keep it idle. There could, however, be a case whe....