Exemption availble to private company manufecturing readymix., Central Excise

[Anil Jangid]

If Private Company is in business of manufecturing of ready mix concrete and delivers to its client office. If the clients of that company are only Government bodies like local authorities , Government Projects. Then in that case is there any exemption to that company in Paying Excise duty? And in the same way if the company is subcontractor to goverment bodies i.e it is providing ready mix concerete to contractors of goverment. In that case is there any exemmption to that companyin paying excise duty? Please tell me your reply with supporting provisions as soon as possible.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

In my opinion it will not be exempted unless exemption given in Notification.

[Rajagopalan Ranganathan]

Sir,

There is no exemption available to the manufacturer of ready mix concrete. He has to pay excise duty subject to the provisions of Notification NO. 8/2003-CE as amended (SSI Notification). Under this Notification if value of clearance in the previous financial year did not exceed the limit of 1.5 Crores or during current financial year the value of clearance is not likely to exceed the of 1.5 Crores the manufacturer need not pay any duty.

[MARIAPPAN GOVINDARAJAN]

Thank you Sri Rajagopalan Sir, I have got clarified from your explanation.