Sunset Date for Excise Exemption to New / Expanded Units in North East

Sunset Date (31 March, 2017) for Excise Exemption to New / Expanded Units in North East

Doubts were raised about the Excise Duty Exemption allowed vide ED Notification No. 20/2007 to new units or units undertaking substantial expansion in the North East Region including Sikkim, in view of the fact that DIPP has suspended registration of new units in the North East Region under the NEIIPP Scheme 2007, w.e.f. 1st December, 2014.

In view of the above, GoI has issued a Circular 1012/19/2015 CX dt. 2nd December, 2015 to clarify that the excise duty exemption shall continue till 31st March, 2017 (i.e. sunset date) to all Units ‘new / undergoing substantial expansion’ set up after 1st Dec. 2014 irrespective of suspension of registration process under the NEIIPP Scheme.

Suspension of benefits under NEIIPP by the DIPP and its bearing on Central Excise Duty Exemption

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