CIR NO. 908/28/2009-CX, DT. 23/12/2009
- Document type
- Circular
- Reference no.
- P
- Dated
Clarification reg. peripheral activities for Area Based Exemption NTF. No. 49 & 50/2003-CE, both dated 10.06.2003 as amended by NTF. No. 01/2008-CE, DT. 18.01.2008.
Clarification reg. peripheral activities for Area Based Exemption NTF. No. 49 & 50/2003-CE, both dated 10.06.2003 as amended by NTF. No. 01/2008-CE, DT. 18.01.2008.
2. References have been received from field formations seeking to clarify as to whether benefit of Area Based Exemption notification would be applicable if both the activities namely the manufacturer of main product ( say hair oil in bulk) and peripheral activities (say repacking into bottles) are carried out in the specified areas. For example, there could be a situation where hair oil in bulk is manufactured in a unit situated in the specified areas and such hair oil is sent to a job worker in specified areas who repacks the bulk oil in retail packs.
3. The matter was discussed in the Chief Commissioners Conference held at Shillong on 30th and 31st October, 2009. The Conference was of the view that going by the wordings of the notifications, the benefit of exemption has to be allowed in cases where both the activity of manufacture and the peripheral activities mentioned in the notification are undertaken in the States of Uttarakhand or Himachal Pradesh.
4. The Board agrees with the above said decision of the Chief Commissioners Conference.
5. Accordingly, it is clarified that the benefit of exemption under Notification Nos. 49/2003-CE and 50/2003-CE both dated 10.06.2003 as amended by Notifiation No. 01/2008-CE dated 18.01.2008 should be available, to such goods where both the activities of manufacture of the main product and the peripheral activities are undertaken in the specified areas in the States of Uttarakhand or Himachal Pradesh even if peripheral activity alone is undertaken by job workers in the specified areas.
6. Trade and Industry as well as field formations may be suitably informed.
7. Receipt of this Circular may kindly be acknowledged.
8. Hindi version will follow.
Yours faithfully,
Sd/-
(Vandana K. Jain)
Director (CX-3)