Exemption For Naphtha for Fertilisers – Additional Condition Imposed
As per Sl. No. 7 of Notification No. 4/2006-Central Excise, dated the 1st March, 2006, Naphtha or Natural Gasoline Liquid for use in the manufacture of fertilizer, if such fertilizer is cleared as such from the factory of production is exempted from excise duty, subject to the condition that:
The exemption shall be allowed if it has been proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction that such goods are cleared for the intended use specified in column (3) of the Table.
Now a new condition is added:
Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed.
Actually this is not a new condition, but was a part of Notification 4/2006 CE from the beginning. However, while splitting the entry No 7 into 7 and 7A vide Notification 14/2009 CE, they forgot to include condition 2 for Sl No 7 which has now been made good. So from 7/7/2009 to 11/8/2009, no notice can be issued if the procedure under Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods Rules 2001 is not followed.
Notification No. Dated 12th August, 2009