Same exemption for excise – but ‘cut and paste’ plays havoc.
In a similar exemption to the one described above, the Government has granted full exemption from excise duty for the indigenous goods used for the same purpose but the Government has again bungled with the “cut and paste” technology. The Central Excise notification is worded almost identically as the Customs notification and is almost cut and pasted but that has created a problem. The second condition to the excise notification reads as follows,
the manufacturer proves to the satisfaction of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, that there is a valid power purchase agreement between the importer and the purchaser, for the sale and purchase of electricity generated using non-conventional materials, for a period of not less than ten years from the date of commissioning of the project.
Who is the importer here? The notification is for a manufacturer and not an importer, but this is what happens when notifications are cut and pasted! DDT hopes the Board will come up with a corrigendum soon.
NOTIFICATION No. dated the 8th September, 2005