GUWAHATI, Dec 4 - The Department of Revenue of the Union Finance Ministry has clarified that the new NE industrial units or the units undertaking substantial expansion in the region after December 1, 2014 and up to the cutoff date of March 31, 2017, shall continue to be eligible for excise duty exemption under a notification as per the conditions it had specified.
The clarification was issued by the Union Department of Revenue through a circular dated December 2, 2015, which came in the wake of doubts over the availability or otherwise of Central Excise Duty exemption under a notification (No. 2012007-Central Excise) issued on April 25, 2007 to new units or units undertaking substantial expansion after December 1, 2014 in the north-eastern region, including Sikkim. Such doubts arose following the suspension of fresh registrations by the Department of Industrial Policy and Promotion (DIPP) for the 2007 North East Industrial and Investment Promotion Policy (NEIIPP) schemes with effect from December 1, 2014.
The circular stated that the matter has been examined in the Ministry in consultation with the DIPP. Fresh registrations for the schemes under NEIIPP, 2007 have been suspended by the DIPP, essentially due to shortage of funds allocated to the DIPP. Therefore, the DIPP (OM No. 10 (1)/2014-DBA-II/NER dated 01.12.2014) has not suspended the entire package of incentives offered for the schemes under the NEIIPP, 2007 as such. Further, notification No. 2012007-Central Excise dated 25.04.2007 does not mandate registration under the NEIIPP, 2007 to avail of the excise duty exemption thereunder, the circular added.