Goods required for mega power project – Excise exemption
The Government has exempted Goods required for setting up of an ultra mega power project based on super-critical coal-thermal technology, with installed capacity of 3960MW or above, from which power procurement has been tied up through tariff based competitive bidding, from excise duty subject to the condition that
a) such goods are exempted from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under Section 3 of the said Customs Tariff Act when imported into India;
b) an officer not below the rank of Chief Engineer in the Central Electricity Authority certifies that the said goods are required for the setting up of the said ultra mega power project under Government of India initiative, indicating the quantity, description, and specifications thereof; and
c) the Chief executive officer of the project furnishes an undertaking to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that-
i. the said goods will be used only in the said project and not for any other use; and
ii. in the event of non compliance of sub-clause (i) above, the project developer will pay the duty which would have been leviable at the time of clearance of goods, but for this exemption.
Notification No. , Dated: August 14, 2008