Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 965/08/2012-CX
New Delhi the 17th April, 2012
To
All Chief Commissioners of Central Excise & Customs,
All Chief Commissioners of Central Excise,
All Directors General
Sir/Madam,
Sub: Clarification regarding admissibility of
exemption under area-based Notification No. 56/2002-CE dated 14.11.2002 – reg.
Your kind attention is invited to
Notification No. 56/2002-CE dated
14.11.2002 which provides for exemption from the duty of excise to specified
goods cleared from industrial units in the State of Jammu & Kashmir to the
extent of duty paid in cash by way of a refund mechanism, for a period of ten
years from the date of publication of the notification or from the date of
commencement of commercial production, whichever is later. The exemption is
available to new units which have commenced commercial production on or after
14.06.2002 as well as existing units which have undertaken substantial expansion
or have made new investments for employment generation on or after 14.06.2002.
2. A doubt has been raised whether in the case of existing units undertaking
substantial expansion, the 10 year exemption period has to be computed from the
date of commencement of initial commercial production or from the date of
commencement of commercial production from the expanded capacity. Some field
formations have taken a view that in the case of existing units which had
commenced commercial production prior to 14.06.2002, the exemption period of ten
years would be computed from the date of publication of notification, i.e.,
14.11.2002, irrespective of the fact that such units had undertaken substantial
expansion after 14.11.2002.
3. The matter has been examined in the Board. It is clarified that the
exemption period of ten years is to be computed from the date of publication of
the notification when a new unit commences commercial production or an existing
unit undertakes substantial expansion and commences commercial production from
such expanded capacity during the period from 14.06.2002 to 14.11.2002. However,
if a new unit commences commercial production or an existing unit undertakes
substantial expansion and commences commercial production from such expanded
capacity after the date of publication of the notification, i.e., 14.11.2002,
the ten year exemption period is to be computed from the date of commencement of
commercial production in the case of new units and from the date of commencement
of commercial production from the expanded capacity in the case of existing
units.
4. Trade, industry and field formations may be suitably informed.
5. Hindi version will follow.
Yours faithfully,
(Madan Mohan)
Under Secretary (CX-3)
F.No. 101/ 15/2010-CX-3