Excise Exemption for cement and Steel for Houses in Tsunami Affected Areas
As per Notification No. 37/2005-C.E dated 17.08.2005, Cement and Steel used in construction of houses, in tsunami affected districts of States of Tamil Nadu, Andhra Pradesh, Kerala and Union Territories of Pondicherry and Andaman and Nicobar Islands are exempted from excise duty.
The exemption works in a complex manner as given below.
(a) The manufacturer of the said goods shall pay duties as applicable at the time of clearance and shall not be eligible for the refund of said duties;
(b) The approved construction agency shall submit a statement of quantity and value of the said goods used in construction of such houses along with documents evidencing payment of duty on the said goods to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, (hereinafter referred to as jurisdictional excise officer), in whose jurisdiction the area where such houses are being constructed is situated;
(c) The approved construction agency shall file a claim for refund of the said duties paid on the said goods procured and utilised in construction of such houses by it along with a self certified consumption certificate of the said goods to the jurisdictional excise officer, on a quarterly basis, within sixty days from the end of the relevant quarter and such period may be extended by the jurisdictional excise officer by another sixty days;
(ca) The approved construction agency, on completion of such houses, shall submit a completion certificate from the District Collector along with consolidated consumption certificate covering all the earlier refund claims, duly certified by a Chartered Engineer and countersigned by the concerned District Collector or Sub-Divisional Magistrate, to the jurisdictional excise officer:
(d) The jurisdictional excise officer shall, after satisfying himself that the said goods have been used for the specified purposes, and on production of documentary evidence about the duty paid on the said goods, and the completion certificate and the consolidated consumption certificate as specified in clause (ca) above, by the approved construction agency, sanction the refund claim, at the rate of 6% of the cost of construction of such house or houses, as the case may be, subject to a maximum of Rs 9000 per house constructed; and
(e) The refund under clause (d) shall be given only to the concerned approved construction agency.
4. The amount of refund shall not exceed 6% of the cost of construction or Rs 9000 per house constructed, whichever is less, in any case
5. The exemption contained in this notification shall only be in respect of said duties paid on the said goods, which have been used in such houses constructed on or after the 1st April, 2005 and on or before 31st March, 2008.
Now this limit of Rs. 9000/- is made Rs. 21,500/- in respect of houses constructed by the approved agency in Andaman and Nicobar Islands and the last date for construction of houses is extended from 31st march 2008 to 31st December 2008.
Notification No. , Dated: December 24, 2008