Clarification on availing excise duty exemption on substantial expansion by existing unit in J&K

[Bimal jain]

Dear Professional Colleague,

Clarification on availing excise duty exemption on substantial expansion by existing unit in J&K

The Central Board of Excise & Customs (“the Board”) vide Circular No. 977/01/2014-CX, dated January 03, 2014(“the Circular”) has clarified on following issue on representations received from trade and industry associations.

Issue: Whether an existing unit in Jammu & Kashmir, which has availed of excise duty exemption under Notification No.56/2002-CE (location specific exemption to all goods other than the exclusion list) & No.57/2002-CE (non-location specific exemption to specified industries other than the exclusion list), both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under Notification No.1/2010-CE, dated 06.02.2010, again by way of second substantial expansion.

Clarification: Existing unit which has availed of excise duty exemption under Notification No.56/2002-CE & 57/2002-CE, both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under Notification No.1/2010-CE, dated 06.02.2010 again by way of second substantial expansion so long as it satisfies the conditions stipulated under Notification No.1/2010-CE, dated 06.02.2010.

Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us.

 Thanks & Best Regards.
 
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
Mobile: +91 9810604563
E-mail: bimaljain at the rate of hotmail.com

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Discussions to this article

[ganeshan kalyani]

Dear Sir,

I would like to discuss this article further to understand as to what the term 'substantial expansion' would refers to. An existing unit in J & K manufacturing product 'X' is availing excise duty exemption under 56/2002 notification. Further a unit adjacent to the existing unit is set up to manufacture product 'Y'. both the unit is in same factory premises. in order to avail excise exemption under 56/2002, whether both the unit will be considered as same or different. some input is requested in this regard.