Exemption to parts when used within the factory in the manufacture of goods falling under heading Nos. 86.01 to 86.06 – Section 11C Notification issued
Government has issued a Section 11C Notification in respect of parts, when used within the factory in which they have been produced, in the manufacture of goods falling under heading Nos. 86.01 to 86.06, of the First Schedule to the Central Excise Tariff Act for the period 1.3.1993 to 3.5.1993 that is for a period of two months.
For your ready reference, it may be stated that a Notification under Section 11C of the Central Excise Act is a virtual retrospective exemption for certain goods for which there was a practice of not paying duty. Mostly it is a retrospective correction of Board's mistakes. And Chapter 86 refers to Railway locos and other vehicles.
By Notification No. 88/93- C.E. , dated 4-5-1993, parts, when used within the factory in which they have been produced, in the manufacture of goods falling under heading Nos. 86.01 to 86.06 of the Schedule to the Central Excise Tariff Act were exempted.
But this was only with effect from 4.5.1993 and so the period from 1.3.1993 to 3.5.1993 had to be covered and now a Section 11C notification is issued to stipulate that no duty is required to be paid – the notification comes after more than FIFTEEN years! Litigation must be relentlessly going on somewhere.
Notification No. (Non Tariff)., Dated: 7th January, 2009