CFI calls for excise duty exemption in n-power projects

CFI in a release here Sunday said: "In the current scenario of power shortage for industrial and economic activities, nuclear power, which has gained national importance, would play a crucial role as alternate source of power to meet the growing demand."

Earlier, the CFI presented the demands in a pre-Budget memorandum to the finance ministry.

The federation, which has major construction and engineering firms under its umbrella, had last year represented to the government that goods supplied for setting up nuclear power projects are eligible to refund of excise duty as Deemed Export benefits.

Regarding exemption of service tax on toll collection, CFI said toll per se if collected in any form by any person cannot attract service tax.

 

"Toll collection for access to roads and bridges prior to June 30, 2012, is still disputed," it said, adding that Special Purpose Vehicles are the concessionaire/contractor and their sub-contractors, who are not mere toll collection agents of the National Highway Authority of India or the state authorities and therefore collection of toll revenues is not liable for service tax.