(This NTF has been rescind vide NTF. NO. 09/2017-CE, DT. 30/06/2017 WEF 01/07/2017)

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts all items of machinery, including prime movers, instruments, apparatus and appliances, control gear and transmission equipment and auxiliary equipment (including those required for testing and quality control) and components, required for initial setting up of a project for the generation of power or generation of compressed bio-gas (Bio-CNG) using non-conventional materials, namely, agricultural, forestry, agro-industrial, industrial, municipal and urban waste, bio waste or poultry litter, falling under any Chapter of the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the said First Schedule, subject to the following conditions,-

(In above opening paragraph the words "or generation of compressed bio-gas (Bio-CNG)" has been inserted vide NTF. NO. 14/2014-CE, DT. 11/07/2014)

(i) before the clearance of the goods from the factory, the manufacturer produces to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, a certificate, from an officer not below the rank of a Deputy Secretary to the Government of India in the Ministry of Non-Conventional Energy Sources recommending the grant of this exemption and the said officer certifies that the goods are required for initial setting up of a project for the generation of power or compressed bio-gas (Bio-CNG), as the case may be, using non-conventional materials, namely, agricultural, forestry, agro-industrial, industrial, municipal and urban waste, bio waste or poultry litter; and

(ii) in the case of projects for the generation of power, the manufacturer proves [OLD - the manufacturer proves ] to the satisfaction of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, that there is a valid power purchase agreement between the producer of power and the purchaser [OLD - the importer and the purchaser ], for the sale and purchase of electricity generated using non-conventional materials, for a period of not less than ten years from the date of commissioning of the project.

(In above condition (i)  the words "or compressed bio-gas (Bio-CNG), as the case may be," inserted & in condition (ii) the words "in the case of projects for the generation of power, the manufacturer proves" has been substituted vide NTF. NO. 14/2014-CE, DT. 11/07/2014)

(In condition (ii), for the words “the producer of power and the purchaser” has been substituted vide NTF. NO. 38/2005-CE, DT. 30/12/2005)

Provided that this condition shall not apply to the power generation projects promoted by State electricity boards or corporations which are notified by the respective State Governments as the State Transmission Utility and Licensee.

(Above proviso has been inserted vide NTF. NO. 34/2010-Ce, DT. 18/11/2010)

Provided further that this condition shall not apply to the power generation projects based on municipal and urban waste, if the manufacturer proves to the satisfaction of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, that there is a valid agreement between the producer of the power and urban local body for processing of municipal solid waste for not less than ten years from the date of commissioning of project.

(Above proviso has been inserted vide NTF. NO. 14/2016-CE, DT. 01/03/2016)

[F.No. 460 / 44 /2005-Cus.V]
 

(Ajay)
Under Secretary to the Government of India