Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 968/02/2013-CX
New Delhi, the 1st April, 2013
To,
All Chief Commissioners of Central Excise & Customs,
All Chief Commissioners of Central Excise,
All Director Generals
Sir/Madam
Sub.:- Clarification regarding admissibility of exemption under area-based
Notifications No. 49/2003-Central Excise and 50/2003-Central Excise, both dated
10.06.2003 – reg.
Your kind attention is invited to Board’s circular No. 960/03/2012-CX dated
17.02.2012 issued from F.No. 110/03/2011-CX3 wherein admissibility of exemption
under Notification Nos 49/2003-CE and 50/2003-CE, both dated 10.06.2003, in
certain specified situations was clarified. In para 5 of the said circular, it
was clarified that expansion of an eligible unit by acquiring an adjacent plot
of land and installing new plant and machinery on such land, is akin to
expansion by way of installing new plant and machinery inside the existing
plot/premises and that in such cases, the exemption should continue to be
available for the residual period of exemption.
- Representations have been received from the Trade seeking further
clarifications as to whether the term ‘adjacent’ used in the said clarification
would also include a plot which is not immediately adjoining the existing plot
but at some distance away from the existing plot.
- The matter has been examined. Para 5 of the aforesaid circular dated
17.02.2012 is meant for a situation where the expansion is done by acquiring the
adjoining plot with at least one common boundary which merges with the existing
plot/premises to make it one unit. Installing of new plant and machinery in a
plot which is away from the existing plot is not akin to the situation mentioned
in para 5 of the said circular. Installation of plant and machinery on such a
plot would tantamount to setting up another unit by the manufacturer, the
eligibility of exemption of which is independent of the eligibility of exemption
to the existing unit.
- For the removal of doubts, it is therefore clarified that the clarification
in para 5 of the circular N. 960/03/2012-CX dated 17.02.2012 is meant for the
units which undertake expansion by acquiring the adjoining plot with at least
one common boundary with the existing plot and merge it with the existing
plot/premises to make it one unit.
- Trade, industry and field formations may be suitably informed.
- Hindi version is enclosed.
Yours faithfully,
(Madan Mohan)
F. No. 101/09/2012-CX3
OSD (CX 3)