Items used for power generation projects –Excise duty exemption – Government corrects cut and paste damage
By Customs Notification No. 81/2005 dated 8th September 2005, the Government has exempted items of machinery, apparatus and appliances etc, required for initial setting up of a project for generation of power using non-conventional materials subject to the condition that there is a valid power purchase agreement between the importer and the purchaser, for the sale and purchase of electricity. There is a similar notification for Central Excise. Only problem was that they simply cut and pasted the customs notification into the Central Excise notification and there too the requirement was that there should be an agreement between the importer and purchaser. TIOL-DDT-198 on 09 09 2005 had then pointed out “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.” The Government has problems in reacting immediately but it is gratifying that they have indeed corrected the lapse albeit after more than three months. The importer is now changed into a producer. Well Done Board, but could this not be done a little earlier?
Notification No. , dated 30-12-2005