HSD/LDO brought into a free trade zone/100% EOU for running the boilers for generating steam eligible for exemption - Central Excise - 44/88-CX.8

HSD/LDO brought into a free trade zone/100% EOU for running the boilers for generating steam eligible for exemption Circular No. 44/88-CX.8 Dated 31-8-1988 [From F. No. 261/27/33/87-CX.8] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject: Whether HSD/LDO brought into a free trade zone/100% EOU for running the boilers for generating steam is eligible for exemption. Doubts have been raised as to whether HSD/LDO when brought into Free Trade Zone/100% Export Oriented Units for running the boilers for generating steam which in turn is used in the manufacturing of goods meant for export would be eligible for exemption under the relevant Notifications or not. The matter has been examined by the Board. It has been decided that only that quantity of HSD/LDO which is used as a direct input in the manufacture of goods meant for export should be eligible for exemption. Inputs not directly used would not be entitled to exemption. What constitutes direct inputs, is to be decided by Collectors on merits.