NEIIPP Registered
Units not be Denied Excise Concession in North East
[TRU Circular
No. 1012 dated 2nd December 2015]
Subject: Suspension
of benefits under North East Industrial and investment Promotion Policy
(NEIIPP), 2007 by DIPP and its bearing on Central Excise duty Exemption,
The undersigned
is directed to refer to the above mentioned subject and to state as follows.
2. Doubts have been raised regarding
availability or otherwise of central excise duty exemption under notification
No.20/2007-Central Excise dated 25.04.2007 to new units or units undertaking
substantial expansion after 01.12.2014 in the North Eastern Region including
Sikkim pursuant to the suspension of fresh registrations by the Department of
Industrial Policy & Promotion (DIPP) for the schemes under North East
Industrial and Investment Promotion Policy (NEIIPP), 2007 with effect from
01.12.2014 vide OM No.10(1)/2014-DBA-II/NER dated 01.12.2014.
3. 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
fund allocated to DIPP. Therefore, 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 NEIIPP, 2007 as such. Further, notification No.20/2007-Central
Excise dated 25.04.2007 does not mandate registration under NEIIPP, 2007 to avail
of the excise duty exemption thereunder.
4. In view of the above, it is clarified that
new units or units undertaking substantial expansion after 01.12.2014 and upto the cut-off date of 31.03.2007 shall continue to be
eligible for excise duty exemption under notification No.
20/2007-Central Excise dated 25.04.2007 subject to the conditions specified
thereunder.
5. Trade Notice/Public Notice may be issued to
the field formations and taxpayers.
6. Difficulties, if any, faced in the
implementation of the instructions may be brought to the notice of the Ministry
at an early date.
[F.No. 332/03/2014-TRU]