Government of India
Ministry of Finance
Department of Revenue, New Delhi
Subject: Denial of exemption to 100% EOUs on various items falling under the category of green house equipment -Reg.
Representations have been received from trade and industry with regard to denial of duty exemption to Ultraviolet Plastic Sheets by field formations when brought in connection with the production or manufacture or packaging of articles inside the 100% EOUs, in context of Notification No.136/94-CE dated 10.11.94, considering them as building materials.
2. The matter has been examined by the Board.
3. It is observed that expression used in the Notification No. 136/94-CE refers to excisable goods specified in the Annexure-I to this notification brought in connection with the production or manufacture or packaging of articles specified in Annexure-II to this notification. “Green House” is used by such units for growing/ cultivating export products in the said green house. Erected green house can itself, therefore, be construed as an equipment in is much as Green House is required for production of the export products like floriculture etc. Accordingly Ultraviolet Plastic sheet which in necessary for making/ erecting green house will be covered under the ambit of Notification 136/94-CE.
4. It is further clarified that the activity of cultivation should be construed as production activity falling within the purview of the said Notification and for determining the eligibility of this notification to any item, the criteria adopted should be its essentially with reference to production/ manufacture/ packaging of an item specified in Annexure-II to Notification 136/94-CE.
5. All pending disputes may be resolved in the light of aforesaid clarification.