Steam generation from biomass briquettes, Central Excise

[AJAY SINGH]

Please any one give opinion that steam generation from biomass briquettes at clients location is excisable or not

Posts / Replies

[Ganeshan Kalyani]

Sir, Steam generated is exciseable but not dutiable. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Do you know sub-heading of Central Excise Tariff Act ? If so let me know. Steam generation from biomass briquettes.

[MUKUND THAKKAR]

Sir,

chapter heading 44013900 and it is excisable 12.5% if I am wrong please correct me.

[KASTURI SETHI]

Sh.Ajay Singh Ji,

I endorse the view of Sh.Mukund Thakkar, Sir. For steam generation there is another sub-heading no.2701 20 90 but in my view also Chapter/sub-heading no. 4401 3900 is correct here and it attracts CE duty.

[Ganeshan Kalyani]

Sir, whether steam is removed / sold or it is used captively. The querist is requested to reply please. Thanks Sri Mukund Sir and Sri Kasturi Sir for enriching my knowledge. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

If used captively it would be exempted vide Notification No.67/95-CE dated 16.3.95 as amended latest vide Notification No.19/14-CE dated 11.7.14

[AJAY SINGH]

Respected kasturi sethi ji

If biomass briquettes taken to client premises and steam is generated with the use of that briquettes on Client location , and that steam is further used by that Client for there purpose as a fuel in place of coal

Then what will be the case , person who is generating the steam is issuing invoice as a sales of xxx unit of steam

Please help me thanks

[KASTURI SETHI]

Sh.Ajay Singh,

Such steam is used by the client as a fuel in place of coal. For what purpose ? Any excisable goods (dutiable) produced from that steam ? If so, steam is exempted. If not, duty on such steam is payable.

[Ganeshan Kalyani]

Sir, when you say at client place did you mean you have sold the biomass Bridgette ? Excise duty on Biomass briquette is non-exciseable. Further if your client generates the steam and removes / sells it then excise duty is applicable as rightly replied by Sri Kasturi Sir. Thanks.