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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....se & 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. 57/2002-C.E., dated 14-11-2002 exempts specified goods cleared from a unit, irr....

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....s 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 amended by Notification No. 39/2002-C.E. (N.T.), dated 14-11-2002. 3. In th....

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....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 that pre-audit of refund claims of more than Rs. 5 lakhs should not lead to delays.....

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.... 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 where a unit discontinues production on newly installed machinery or may later on decrease t....