The Central Government has finally come up with a Notification No. 25/ 2014-C.E dtd 11th Dec 2014 for exempting central excise duty on all goods meant for and donated to the flood effected people in the state of J&K .The manufacturer of such goods and even a person purchasing the goods out of a cash donation for ultimately supplying free to flood effected people of J&K will enjoy exemption of excise duty .
The relevant procedural requirements & compliances to avail such an exemption are as below :
a. such goods shall be donated to the flood effected people in J&K only .
b. no amount shall be realised by the supplier from such persons in J&K .
c. all invoices shall bear a remark i.e the goods are intended to be donated for the relief and rehabilitation of the people affected by the floods in the said State free of cost
d.all such goods have to be sent directly from manufacturers factory or warehouse to Central Government , State Government of J&K or to an agency duly approved by Central Government or State Government of J&K
e. every such manufacturer has to to furnish a certificate from the District Magistrate of the affected area in the State of J &K that the said goods have been donated for the usage by the flood effected people of J&K .
f.such a certificate has to be produced within 6 months or in extended period as may be allowed by jurisdictional Deputy Commissioner or the Assistant Commissioner of Central Excise .
g. The exemption of central excise duty shall be valid upto 31st March only i.e all the clearences made upto 31st March will be exempted from the excise duty .
The said notification is produced herein below
Notification No. 25/2014-Central Excise
New Delhi dated the 11th December, 2014
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 goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) donated or purchased out of cash donations, for the relief and rehabilitation of the people affected by the floods in the State of Jammu and Kashmir from the duty of excise leviable thereon under the Central Excise Act, 1944, subject to the following conditions, namely:-
(i) that it is certified by the manufacturer of such goods on the relevant clearance documents that the goods are intended to be donated for the relief and rehabilitation of the people affected by the floods in the said State free of cost;
(ii) that the goods are sent directly from the factory of the manufacturer or warehouse to the Central Government, the Government of Jammu and Kashmir; or as the case may be, the relief agencies of the Central Government, the Government of Jammu and Kashmir including the relief agencies duly approved by the Central Government or the Government of Jammu and Kashmir; and
(iii) that the manufacturer produces before the jurisdictional Deputy Commissioner or the Assistant Commissioner of Central Excise, as the case may be, within six months from the date of removal of the goods or within such extended period as the said officer may allow, a certificate from the District Magistrate of the affected area in the State of Jammu and Kashmir that the said goods have been donated for use for the aforesaid purpose.
2. This notification shall remain in force upto and inclusive of the 31st March, 2015.
Under Secretary to the Government of India