CIR NO. 963/06/2012-CX, DT. 29/03/2012
- Document type
- Circular
- Reference no.
- S
- Dated
Clarification Regarding Mega Power Project (MPP) exemption-reg.
Clarification Regarding Mega Power Project (MPP) exemption-reg.
2. Representations have been received in the Board seeking clarification on certain issues relating to clearances of goods for Mega Power Projects under the aforesaid Notification. These have been examined by the Board and the following issues are clarified for guidance of the field formations and the trade:
a) Whether the FDR is required to be submitted to the jurisdictional officer in-charge of the Mega Power Project or to the jurisdictional officer in-charge of the factory from where the goods are cleared for supply to such project: It is clarified that the FDR is required to be submitted to the jurisdictional Deputy Commissioner or Assistant Commissioner, in-charge of the factory from where the goods are cleared in terms of this notification and not to the jurisdictional officer, in-charge of the Project.
b) Whether only one FDR is required to be submitted in respect of the clearances which are likely to take place over a period of time or the fixed deposits can be submitted at regular intervals: It is clarified that the notification do not provide for submission of a single FDR. The FDRs can be submitted by the Project Director at regular intervals as and when the clearances take place. However, each FDR has to be for a period of thirty six months or as stipulated in the notification.
c) Clarification has also been sought as to whether the provisions of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 are applicable to such clearances: These rules are applicable in case the inputs are removed for further use by a manufacturer and not for use in a project. In fact neither entry no.91B of Notification No.6/2006-CE dated 1.3.2006, as amended, nor condition no.28 corresponding to the said entry prescribes that to avail the exemption, the procedures prescribed under the above mentioned Rules have to be followed. Therefore, it is clarified that the provisions of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 are not applicable in case of such removals.
3. Trade may be informed accordingly.
4. Hindi version would follow
Yours faithfully,
(Madan Mohan)
Under Secretary (CX3)