13th September, 2005
 

F.No  460/44/2005- Cus.V

Government of India

Ministry of Finance

Department of Revenue

Tax Research Unit

Sub: Customs and excise duty exemption machinery, apparatus and appliances and components, required for initial setting up of a power project using non-conventional materials - clarification regarding

Notification Nos. 81/2005- Customs and 33/2005-Central Excise, both dated the 8th September, 2005, have been issued so as to allow concessional customs duty of 5% and full exemption from excise duty, respectively, on machinery, apparatus and appliances and components, required for initial setting up of a power project using specified non-conventional materials. The above exemptions are subject to certification by the Ministry of Non-conventional Energy Sources.

2.        Imports of the above-mentioned goods, will also be eligible for exemption from the additional duty of customs (CVD), imposed under section 3 of the Customs Tariff Act, 1975, in view of the above-mentioned excise duty exemption, provided the importer produces the requisite certificate from the Ministry of Non-Conventional Energy Sources.

Yours sincerely, 

(R. Saroop)

Director (TRU)