leavy of excise duty on purchase of machinery by contractor for outside india contract, Central Excise

[gopesh agrawal]

A Indian contractor want to purchase a machinery from India for a construction work in Bhutan. Is excise duty is leviable on such machinery ( work contract is exempt from service tax).

If no, will it be levied when machinery get back to India.

Please give your opinion with legal support.

Posts / Replies

[Ravi Kumar]

the sale to nepal bhutan no exemption of excise duty allowed.. spacially mantioned in the acts..

thus duty is payable on that machinery..

in this case service tax is exempt , ie services are provided outside india thus ST not appplicable on service provided od to be provide in J & K & Outside india.

the buyer is treated normally as buyer only ,,not a Contractor...