EXCISE CIRCULAR No. 672/63/2002-CX, Dt. 23/10/2002

Exemption extended to specified goods intended to be used for the installation of a cold storage, cold room or refrigerated vehicle for the preservation, storage or transport of agriculture produce

The undersigned is directed to refer to the exemption extended to specified goods intended to be used for the installation of a cold storage, cold room or refrigerated vehicle for the preservation, storage or transport of agriculture produce vide Sl. No.196 of the Table in notification No. 6/2002-Central Excise, dated 1.3.2002. The exemption is subject to the conditions that (i) the goods are cleared for the intended purpose; and (ii) the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 is followed. In this context, a doubt has been raised whether the benefit of the said exemption can be extended when the person procuring the goods for the installation of a cold storage/cold room/refrigerated vehicle is not a manufacturer. This doubt has arisen as the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 relate to a `manufacturer" of excisable goods.

2. The matter has been examined. It is the intention of the Government not to deny excise duty exemption to any type of user (whether manufacturer or not) of the specified goods who intends to use these for the installation of a cold storage, cold room or refrigerated vehicle for the preservation, storage or transport of agricultural produce. It is, therefore, felt that the requirement of fulfillment of condition No. 5 of the notification No. 6/2002-Central Excise, dated 1.3.2002 needs to be interpreted in such manner that the recipients who are not manufacturers also get the benefit of the exemption. In fact, so long as the procedural requirements of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 are complied with, the benefit of the subject exemption in respect of the goods specified in List 8 annexed to notification No. 6/2002-CE dated 1.3.2002 when these are supplied for installation of a cold storage, cold room or refrigerated vehicle for preservation, storage or transport of agriculture produce should not be denied solely on the ground that the person receiving the specified goods is not a manufacturer of excisable goods.

3. Field formations and trade may be suitable informed.

Sd/-
(Gautam Ray)
Joint Secretary to the Govt. of India

F No. 354/191/2002-TRU

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