Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARD :: VAT RATES :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: cpt :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
Latest Circulars »
 RBI-Exim Bank's GoI supported Line of Credit of USD 35.00 million to the Government of the Republic of Guinea
 RBI-Amendment to Master Direction on Know Your Customer
 Reserve Bank of India Act, 1934 – Section 42(1A) Withdrawal of the Incremental CRR
 RBI-Transcript of Statement made by Shri R. Gandhi, Deputy Governor
 Requirement of customer due diligence and need for maintenance of records
 Card Not Present transactions – Relaxation in Additional Factor of Authentication for payments upto ₹ 2000/- for card network provided authentication solutions
 Auction of Government of India Dated Securities December 05, 2016
 Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on December 05, 2016)
 RBI-Investment under PIS in M/s Laurus Labs Limited by FIIs/FPIs upto 49 per cent and NRIs upto 24 per cent
 RBI-Issuance of 35 days Cash Management Bills under Market Stabilisation Scheme (MSS)
 RBI-Information from Unauthenticated Sources – Advisory to banks

Central Excise Circular No.912/02/2010
January, 25th 2010

Circular No.912/02/2010-CX


 
F.No.101/22/2008-CX-3

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

***

 

New Delhi dated the 22nd January, 2010

 

To

All Chief Commissioners of Central  Excise (including LTU),

 All Commissioners of Central Excise (including LTU),

 All Director Generals.


 
Subject: Substantial Expansion by way of increase in installed capacity for the units availing area based exemption.


***

 

Madam/ Sir,
 
            Area based exemption is available to the units in the specified areas in the North-East region, Jammu & Kashmir, Himachal Pradesh and Uttarakhand under different notifications. The exemption is applicable to the new industrial units set up after the specified date and also to the existing units which have undertaken substantial expansion by way of increase in installed capacity by not less than 25%.

 

2. References have been received regarding the units manufacturing specified goods as well as non-specified goods as to whether the substantial expansion should take place only for specified goods or of overall capacity of the unit.

Following two situations have arisen in such cases:

             

                (1) 25% expansion is undertaken only in respect of specified goods, and not

                     overall capacity of the unit.

 

                (2) The expansion is undertaken in respect of non-specified goods only, but 

                     overall capacity of the unit increases by 25%.

 

3.   The issue was discussed in the Chief Commissioner's Conference held at Shillong on 30th and 31st October, 2009 and thereafter in the Boar on the basis of inputs received from field formations.

 

 4.   The matter has been examined. The exemption notification is applicable only to the specified goods. Therefore, the condition of substantial expansion should also be applicable to the specified goods only. Therefore, it is clarified that only when the substantial expansion of the installed capacity of the specified goods is undertaken, then only the benefit of notification would be applicable. To illustrate, if a unit is making tobacco product (say- gutkha, a non-specified goods, which is not allowed benefit of exemption) and also iron and steel articles ( specified goods, which are lowed benefit of exemption), in that case, only when units increase installed capacity of iron and steel articles by 25%, benefit would be available. But if it increases production of gutkha by 100%, then it would not get benefit.

 
 5.         Trade and Industry as well as field formations may be suitably informed.
 
 6.         Receipt of this Circular may kindly be acknowledged.
 
 7.         Hindi version will follow.

 Yours faithfully,

Sd/-

 

 (Dr.Ravindra J Dange)

 Under Secretary to Government of India (CX-3)

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions