Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No.908/28/ 2009-CX
New Delhi dated the December 23, 2009
To
All Chief Commissioners of Central Excise (including LTU),
All Commissioners of Central Excise (including LTU),
All Director Generals.
Subject: Clarification regarding peripheral activities for Area Based Exemption
notification Nos. 49 & 50/2003-CE, both dated 10.06.2003 as amended by
notification No. 01/2008-CE dated 18.01.2008.
Madam/ Sir,
The undersigned is directed to refer to the
notification No. 01/2008-CE dated
18.01.2008 vide which amendments have been carried out in notification Nos. 49 &
50/2003-CE, both dated 10.06.2003. Attention is also invited towards the
clarification issued by TRU vide Circular No. 863/01/2008-CX dated 18.01.2008 in
this regard.
- References have been received from field formations seeking to clarify as to
whether benefit of Area Based Exemption notification would be applicable if both
the activities namely the manufacturer of main product ( say hair oil in bulk)
and peripheral activities (say repacking into bottles) are carried out in the
specified areas. For example, there could be a situation where hair oil in bulk
is manufactured in a unit situated in the specified areas and such hair oil is
sent to a job worker in specified areas who repacks the bulk oil in retail
packs.
- The matter was discussed in the Chief Commissioners’ Conference held at Shillong on 30th and 31st October, 2009. The Conference was of the view that
going by the wordings of the notifications, the benefit of exemption has to be
allowed in cases where both the activity of manufacture and the peripheral
activities mentioned in the notification are undertaken in the States of ‘Uttarakhand’
or ‘Himachal Pradesh’.
- The Board agrees with the above said decision of the Chief Commissioners’
Conference.
- Accordingly, it is clarified that the benefit of exemption under Notification
Nos. 49/2003-CE and 50/2003-CE both dated 10.06.2003 as amended by Notifiation
No. 01/2008-CE dated 18.01.2008 should be available, to such goods where both
the activities of manufacture of the main product and the peripheral activities
are undertaken in the specified areas in the States of Uttarakhand or Himachal
Pradesh even if peripheral activity alone is undertaken by job workers in the
specified areas.
- Trade and Industry as well as field formations may be suitably informed.
- Receipt of this Circular may kindly be acknowledged.
- Hindi version will follow.
Yours faithfully,
Sd/-
(Vandana K. Jain)
Director (CX-3)
F.No.10/201/209-CX-3