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.

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Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
Mobile: +91 9810604563
E-mail: [email protected]