Exemption to Mints and Bank Note Printing Presses – CBEC Clarifies
SECURITY Printing & Minting Corporation of India Ltd. (SPMCIL) is a wholly owned company of Government of India incorporated in January, 2006 by bringing together nine units of Government of India (four mints, two bank note printing presses, two security printing presses, and one security paper mill) under one corporate entity. Prior to their incorporation, these units were departmental organizations under the Currency and Coinage Division in the Department of Economics Affairs, Ministry of Finance.
After the formation of the Corporation, there is a doubt in the field about the eligibility for excise and customs exemption, because the units no more technically belong to the Government of India.
CBEC clarifies,
“The benefit of exemption from excise and customs duties under notification Nos. dated 1.3.2006 and dated 1.03.2002 have been provided for units by name and the notification does not stipulate condition of government ownership of the said units. It is therefore clarified that the exemption under Notification No. dated 1.3.2006 (as amended) and Notification No. dated 1.03.2002 (as amended) continue to be available to these units irrespective of their change in status from a factory belonging to the Central Government to an incorporated Company.”
CBEC F. No.354 /48/2007- TRU Dated: May 10, 2010