Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 963/06/2012-CX
New Delhi, the, 29th March, 2012
To
All Chief Commissioners of Central Excise & Customs,
All Chief Commissioners of Central Excise,
All Directors Generals
Sir/Madam,
Sub: Clarification Regarding Mega Power Project
(MPP) exemption – reg.
Representations have been received seeking clarification regarding the entry
at S.No. 91B of
Notification No.6/2006-CE dated 1.3.2006 (present entry no. 338
of
Notification No. 12/2012-CE dated 17.3.2012). Sl.No.91B of Notification
No.6/2006-CE dated 1.3.2006 prescribes exemption to specified goods when
supplied to Mega Power Projects. The exemption is available subject to condition
No.28 which, inter alia, prescribes that in case the certificate issued by the
Joint Secretary in the Ministry of Power regarding the project having the status
of Mega Power Project is provisional, the Chief Executive Officer of the Project
has to furnish a Fixed Deposit Receipt (FDR) for an amount equal to the Central
Excise duty payable for a term of thirty six months or more to the Deputy
Commissioner or the Assistant Commissioner of Central Excise having
jurisdiction.
2. Representations have been received in the Board seeking clarification on
certain issues relating to clearances of goods for Mega Power Projects under the
aforesaid Notification. These have been examined by the Board and the following
issues are clarified for guidance of the field formations and the trade:
- Whether the FDR is required to be submitted to the jurisdictional
officer in-charge of the Mega Power Project or to the jurisdictional officer
in-charge of the factory from where the goods are cleared for supply to such
project: It is clarified that the FDR is required to be submitted to the
jurisdictional Deputy Commissioner or Assistant Commissioner, in-charge of
the factory from where the goods are cleared in terms of this notification
and not to the jurisdictional officer, in-charge of the Project.
- Whether only one FDR is required to be submitted in respect of the
clearances which are likely to take place over a period of time or the fixed
deposits can be submitted at regular intervals: It is clarified that the
notification do not provide for submission of a single FDR. The FDRs can be
submitted by the Project Director at regular intervals as and when the
clearances take place. However, each FDR has to be for a period of thirty
six months or as stipulated in the notification.
- Clarification has also been sought as to whether the provisions of
Central Excise (Removal of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Rules, 2001 are applicable to such
clearances: These rules are applicable in case the inputs are removed for
further use by a manufacturer and not for use in a project. In fact neither
entry no.91B of Notification No.6/2006-CE dated 1.3.2006, as amended, nor
condition no.28 corresponding to the said entry prescribes that to avail the
exemption, the procedures prescribed under the above mentioned Rules have to
be followed. Therefore, it is clarified that the provisions of Central
Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of
Excisable Goods) Rules, 2001 are not applicable in case of such removals.
3. Trade may be informed accordingly.
4. Hindi version would follow
Yours faithfully,
(Madan Mohan)
Under Secretary (CX3)
F.No.101/9/2011-CX.3