As per the Notification No 6/2006-Central Excise Dated 01-March-2006 of CBEC on Central Excise:
All the goods supplied against ICB under the First Schedule of the The Central Excise Tariff Act-1985 will be excise duty exempted as in the Sl. No. 91 with Condition no. 19.
(As per the Policy Circular No. 29 (RE-08)/2004-2009 Dated: 20th August, 2008 by DGFT
Deemed export benefits to Mega Power Projects are available if
(i) If power procurement from such projects has been tied up though ICB procedure;
OR
(ii) If ICB procedure has been followed by such projects at Engineering and procurement contract (EPC) stage.)
Condition No-19:
If the goods are exempted from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under Section 3 of the said Customs Tariff Act when imported into India.
As per the Notification No 21 / 2002-Customs Dated 01-March-2002 by CBEC for Customs Duty:
The equipment for the setting up any mega power project will be customs duty exempted as the details in the following.
Sl No | Chapter or Heading or sub - heading | Description of Goods | Standard Rate | Additional Duty Rate | Condition No |
400 | 98.01 | Goods required for setting up of any Mega Power Project , if such Mega Power Project is- (a) an inter-State thermal power plant of a capacity of 1000 MW or more; or (b) an inter-State hydel power plant of a capacity of 500 MW or more, as certified by an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power | Nil | Nil | 86 |
Condition-86
(a) If an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power certifies that-
(i) the power purchasing State has constituted the Regulatory Commission with full powers to fix tariffs;
(ii) the power purchasing State undertakes, in principle, to privatize distribution in all cities, in that State, each of which has a population of more than one million, within a period to be fixed by the Ministry of Power; and
(iii) the power purchasing State has agreed to provide recourse to that State’s share of Central Plan allocations and other devaluations towards discharge of any outstanding payment in respect of purchase of power;
(b) In the case of imports by a Central Public Sector Undertaking, the quantity, total value, description and specifications of the imported goods are certified by the Chairman and Managing Director of the said Central Public Sector Undertaking; and
(c) In the case of imports by a Private Sector Project, the quantity, total value, description and specifications of the imported goods are certified by the Chief Executive Officer of such project.
