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Circular No. 1064/03/2018-CX
F. No. 354/94/2011 –TRU (Pt)
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit

North Block, New Delhi
Dated the 26
th
of February, 2018
To
The Principal Chief Commissioner/Chief Commissioner/ Principal Commissioner/
Commissioner of Central Excise and Central Tax (All) / Director General of Systems
Madam / Sir,
Subject:Consideration of mega power policy benefits in proportion to the long term PPA
tied up in case of provisional mega power projects – regarding
Certain specified goods such as machinery, apparatus, instruments, cables, components
or raw material supplied to specified mega power projects, including the projects with
provisional mega power status, were exempted from central excise duty vide entry No. 338
under notification No. 12/2012-Central Excise, dated the 17
th
March, 2012 (as amended). In
case of provisional mega power projects this exemption was subject to furnishing of a security
[in the form of a Fixed Deposit Receipt or Bank Guarantee from any scheduled bank for a
term of 126 months] for an amount equal to the central excise duty payable but for the
said exemption. The notification provided for release of security on furnishing of final mega
power status certificate.
2. However, with advent of GST, notification No. 12/2012-Central Excise, dated the 17
th

March, 2012 has been superseded vide notification No. 11/2017-Central Excise, dated the 30
th

June, 2017 and the said entry No. 338 has been omitted, except as respects things done or
omitted to be done before such omission.
3. With the approval of the competent authority it has been decided to proportionately
release the Fixed Deposit Receipt or Bank Guarantee in case of such provisional mega power
projects, as per the proportionate mega certificate [Mega Power Certificate (Proportional)]
issued by the Joint Secretary to the Government of India in the Ministry of Power, Government
of India.
4. In view of the above, it is hereby directed that in the case of provisional mega power
projects, the security in the form of Fixed Deposit Receipt or Bank Guarantee lying with the
jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central
Excise, as the case may be, with regard to aforesaid central excise duty exemption, may be
released proportionately as per the proportionate mega certificate [Mega Power Certificate
(Proportional)] issued by the Joint Secretary to the Government of India in the Ministry of
Power, Government of India.
5. The field formations may take necessary action in order to give effect to the decision on
the above lines.
6. If any difficulty is faced, the same should be brought to the notice of the Board.
Yours faithfully,

(Geelani Basha K.S.M.)
Technical Officer, TRU
circulars no 1064 03 2018 cx | iKargos