MANU/EXCR/0025/2016

Ministry : Ministry of Finance

Department/Board : CBEC Excise

Circular No. : 1036/24/2016-CX

Date : 06.07.2016

Notification/ Circulars Referred : Notification No. 12/2012-Central Excise, dated 17.03.2012 MANU/EXCT/0023/2012;Circular No. 456/22/99-CX, dated 18.05.1999 MANU/EXCR/0023/1999

Citing Reference:
Notification No. 12/2012-Central Excise, dated 17.03.2012 MANU/EXCT/0023/2012  Referred

Circular No. 456/22/99-CX, dated 18.05.1999 MANU/EXCR/0023/1999  Referred

To,

Principal Chief Commissioner of Central Excise/Service Tax (All),
Chief Commissioners of Central Excise/Service Tax (All),
Principal Commissioner of Central Excise/Service Tax (All).

Madam/Sir,

Scope of word 'site' appearing in Notification No. 12/2012-Cental Excise, dated 17.03.2012-reg

Representations have been received from the trade regarding difficulties being faced in availing of benefit of exemption applicable to goods manufactured at the site of construction for use in construction work at such site vide S. No. 186 of Notification No. 12/2012-Central Excise, dated 17.03.2012, as amended. The issue is, how should the expression "site" used and defined in the aforesaid notification be interpreted, particularly for projects which run long distances, such as construction of road, laying of pipelines or laying of railway tracks etc.

2.1 The issue has been examined in the Board. The expression site has been defined in the notification (ibid) as "any premises made available for the manufacture of goods by way of a specific mention in the contract or agreement for such construction work, provided that the goods manufactured at such premises are solely used in the said construction work only".

2.2 It is clear from the definition that the expression "site" cannot be given a restrictive meaning while interpreting the same so long as the premises under consideration for availing benefit of exemption under S. No. 186 of Notification No. 12/2012-Central Excise, dated 17.03.2012 fulfils following conditions:-