|
This notification exempts goods used by a
unit in a special economic zone from from Central Excise duty and
Additional duty.
19th October, 2000.
Notification No. 52 /2000-Central Excise
G.S.R. 803(E). - In exercise of the powers conferred by
sub-section (1) of section 5A of the Central Excise Act, 1944, (1
of 1944), read with sub-section (3) of section 3 of Additional
Duties of Excise (Goods of Special Importance) Act, 1957 (58 of
1957), the Central Government, being satisfied that it is
necessary in the public interest so to do and in supersession of
the notification of the Government of India in the Ministry of
Finance (Department of Revenue) No. 41/2000-CE, dated the 26th
May, 2000 [ G.S.R 500 (E), dated the 26th May, 2000],
except as respects things done or omitted to be done before such
supersession, hereby exempts excisable goods (hereinafter
referred to as the said goods) specified in the Schedule to the
Central Excise Tariff Act,1985 (5 of 1986), when brought by a
unit ( hereinafter referred to as the said unit) located in
Special Economic Zone as notified by the Government of India in
the Ministry of Commerce and Industry ( hereinafter referred to
as the Zone) from factory of manufacture or warehouse situated in
other parts of India, for the purposes of manufacture of goods,
services, production, processing, assembling, trading, repair,
reconditioning, re-engineering, packaging or in connection
therewith and export thereof ( hereinafter referred to as the
said purpose ) from the whole of the duty of excise leviable
thereon under section 3 of the said Central Excise Act, and the
additional duty of excise leviable thereon under section 3 of the
said Additional Duties of Excise (Goods of Special Importance)
Act, subject to the following conditions, namely:-
-
The said unit has been authorised by the Development
Commissioner to establish the unit in the Zone for the said
purpose.
-
The said goods are brought directly into the unit from
the factory of manufacture or warehouse.
-
The said unit executes a bond in the form specified by
the Assistant Commissioner of Central Excise or Customs or
Deputy Commissioner of Central Excise or Customs, binding
itself -
(i) to bring the said goods into the said
unit in the Zone and to use them for the said purpose;
to dispose of the said goods or the
services, articles produced, manufactured, processed and packaged
in the said unit in the Zone or the waste, scrap and remnants
arising out of such production, manufacture, processing or
packaging in the manner as provided in the Export and Import
Policy and in this notification;
to achieve positive NFEP ( Net Foreign
Exchange Earning as a Percentage of Exports) as provided in
paragraph 9.32 of the Export and Import Policy read with the
provisions of Handbook of Procedure, Vol. I and to comply with
the conditions stipulated in this notification, the relevant
provisions of Export and Import Policy and the relevant
provisions of Handbook of Procedures, Vol. I and to pay on
demand;-
(a) in case of failure to achieve the said
positive NFEP the duty equal in amount to the portion of the duty
leviable on the said goods but for the exemption contained in
this notification and the duty so payable shall bear the same
proportion as the unachieved portion of NFEP bears to the
positive NEFP to be achieved along with interest at the rate of
24% per annum on the said duty to be paid on demand from the date
of procurement of the said goods till the payment of such duty.
(b) in case of failure to utilise the said
goods for the said purpose within the period of five years, an
amount equal to the duty as leviable on the said unutilized goods
along with interest at the rate of 24% per annum on the said duty
from the date of importation or procurement of the said
unutilized goods till the payment of such duty.
- The said unit shall maintain proper account, in format
convenient to it and financial year-wise, of all foreign
exchange inflow by way of exports and other receipts, all
foreign exchange outflow on account of imports, payment of
dividend, royalty, fees, similar other accounts, consumption,
utilisation of the said goods and sale of goods produced,
manufactured, processed, packaged and services rendered
including waste, scrap and remnants arising out of such
production, manufacture, processing or packaging in the Domestic
Tariff Area and shall submit regularly quarterly statement and
monthly statement in case of gem and jewellery to the Assistant
Commissioner of Central Excise or Customs or Deputy Commissioner
of Central Excise or Customs in the proforma prescribed in
Appendix 16H of the Handbook of Procedures, Vol.I.
- The unit follows the procedure contained in Chapter X of
the Central Excise Rules, 1944 (hereinafter referred to as the
said rules) with the modification that certificate in form CT-3
annexed to this notification as Annexure-I shall be used by the
Central Excise Officer in-charge of the unit in place of a
certificate in form CT-2 provided in the said rules.
- The Assistant Commissioner of Central Excise or Customs
or Deputy Commissioner of Central Excise or Customs may, subject
to such conditions and limitations as may be imposed by him and
subject to the provisions of the Export and Import Policy -
permit the said goods or goods
manufactured, produced, processed, partially processed or
packaged in the said unit to be taken to any other unit in
another Special Economic Zone or to Export Oriented Undertaking
or Export Processing Zone or Software Technology Park or
Electronics Hardware Technology Park units temporarily without
payment of duty -
(a) for repairs, processing, testing or
display and to be returned to the said unit thereafter, or
(b) for the purposes of manufacture and
export therefrom, subject to maintenance of proper accounts by
both the receiving and supplying units:
permit the said goods or partially
processed or packaged in the said unit to be taken outside the
Zone without payment of duty for the purpose of test, repairs,
replacement, calibration, refining, processing, display, job-work
or any other process necessary for manufacture of final product
and to be returned to the unit thereafter or remove the same
without payment of duty under bond for export from job-worker's
premises:
Provided that in case of export from the
job-worker's premises, such job-worker shall be Central Excise
registrant under rule 174 of the said rules:
Provided further that waste or scrap or
remnants generated during such process at the job-worker's
premises shall be either returned to the unit in the Zone or
shall be cleared on payment of duty as if the said waste or scrap
or remnants have been procured by the said unit;
permit removal of moulds, jigs, tool,
fixtures, tackles, instruments, hangers, patterns, drawings
without payment of duty to the premises of the sub-contractors
subject to the condition that the such goods shall be brought
back to the said unit on completion of the jobwork within the
stipulated period as specified by the Assistant Commissioner of
Customs or Central Excise or Deputy Commissioner of Customs or
Central Excise:
Provided that this condition shall not
apply to the said unit if such unit is engaged in gem and
jewellery.
(7) The Assistant Commissioner of Central
Excise or Customs or Deputy Commissioner of Central Excise or
Customs may, subject to such conditions and limitations as may be
imposed by him and subject to the provisions of Export and Import
Policy, permit the said unit engaged in gem and jewellery in the
Zone -
(i) to take out gold, silver or platinum
for job-work in the Domestic Tariff Area and to bring back the
jewellery finished or semi-finished , including studded jewellery
containing quantity and purity equal to the gold, silver ,
platinum taken out within the period of thirty days from the date
of such taking out :
Provided that no diamonds, precious stones or semi-precious
stones shall be allowed to be taken out.
(ii) to receive plain gold or plain silver
or plain platinum jewellery from any place in India against
exchange of gold or silver or platinum of the same purity and
quantity in weight as that of the said gold or silver or platinum
jewellery, as the case may be:
Provided that in case of activities
mentioned at (i) and (ii) above in this condition, the Domestic
Tariff Area unit supplying such jewellery against exchange of
gold or silver or platinum or after jobwork shall not be entitled
for deemed export benefits and the said unit in the Zone shall
not be eligible for wastage or manufacturing loss against such
jewellery;
(iii) to take out items
of gem and jewellery temporarily into Domestic Tariff Area
without payment of duty for the purpose of display and to be
returned thereafter;
(iv) for personal
carriage of gold Jewellery or silver jewellery or platinum
jewellery or precious stones or semi-precious stones or beads and
articles as samples upto US$ 1,00,000/- for export promotion
tours and temporary display or sale abroad subject to the
condition that the exporter would bring back such jewellery,
precious stones or semi-precious stones or beads and articles or
the sale proceeds within a period of forty-five days from the
date of departure through normal banking channel;
(v) to export Jewellery including branded
jewellery for display and sale in the permitted shops set up
abroad, or in the showroom of its distributors
or agents:
Provided that items not sold abroad within
a period of one hundred eighty days from the date of their export
shall be re-imported within a period of forty-five days from the
expiry of such period from the date of expiry;
(vi) to remove parts and tools of machines
temporarily into Domestic Tariff Area without payment of duty for
the purpose of repairs and return thereof after such repairs.
(vii) to remove moulds, tools, patterns
and drawing to the premises of the sub-contractors for jobwork
without payment of duty and to be returned to the unit thereafter
within the period specified in this behalf by the Assistant
Commissioner or Deputy Commissioner of Central Excise or Customs
as the case may be;
(viii) to send scrap,
dust or sweepings of gold arising in the manufacturing process in
it's unit to the Government Mint or Private Mint for conversion
into standard gold bars and to be returned to the said unit
thereafter or to clear such scrap, dust or sweeping to the
Domestic Tariff Area on payment of duty on the gold content in
the said scrap, dust or sweepings.
(8) Subject to the satisfaction of the
Assistant Commissioner of Central Excise or Customs or Deputy
Commissioner of Central Excise or Customs, duty shall not be
leviable in respect of -
the said goods ( including capital goods )
or goods manufactured, processed or packaged in the said unit, if
such goods are destroyed within the Zone or outside the Zone,
when it is not possible or permissible to destroy the same within
the Zone.
the scrap or waste material or remnants
arising in the course of such production, manufacture, processing
or packaging, if such scrap or waste material or remnants are
destroyed within the Zone or destroyed outside the Zone when it
is not possible to destroy the same within the Zone:
Provided that this condition shall not
apply in the case of gold, silver, platinum, diamonds, precious
stones and semi-precious stones.
2. Notwithstanding anything contained in
paragraph 1, in a case where the said unit is engaged in the
development of software, the exemption contained therein shall
also apply to goods procured by such units for training and for
development and testing of software for export and for providing
consultancy services for development of software "on
site" abroad.
Provided that the conditions stipulated in
this notification are complied with by the said unit engaged in
the development of software; and
Explanation. - The consultancy fees received by the said
unit in convertible foreign currency for consultancy services for
development of software on site abroad shall be deemed to be
exports for the purpose of fulfilment of the said positive NFEP
under this notification.
3. Notwithstanding anything contained in
this notification, the said unit (other than a trading unit),
shall be allowed to clear in accordance with the Export and
Import Policy, the finished goods including by-products and
services, manufactured or produced out of the said goods
(including rejects, waste, scrap and remnants arising in the
course of production, manufacture, processing or packaging of
such articles and re-usable containers, cones, bobbins) into
Domestic Tariff Area on payment of duty:
Provided that where such finished goods
(including rejects, waste, scrap and remnants) are not excisable,
excise duty equal in amount to that leviable on the inputs
obtained under this notification and used for the purpose of
manufacture of such finished goods, which would have been paid
but for the exemption under this notification, shall be payable
at the time of clearance of such finished goods:
Provided further that the services shall be
allowed to be rendered by the said unit in the Domestic Tariff
Area subject to achievement of positive NFEP as stipulated in the
Export and Import Policy.
4. Notwithstanding anything contained in
this notification, the said unit engaged in trading shall be
allowed to clear the said goods in the Domestic Tariff Area
without payment of duty, if such clearance is against Advance
License or special duty free entitlement as per the provisions of
the Export and Import Policy or to other Special Economic Zone or
Export Oriented Undertaking or Export Processing Zone or
Electronic Hardware Technology Park or Software Technology Park
units.
5. Without prejudice to any other
provisions contained in this notification, the Assistant
Commissioner of Central Excise or Customs or Deputy Commissioner
of Central Excise or Customs may, subject to such conditions and
limitations as he may deem fit to impose under the circumstances
of the case for the proper safeguard of revenue interest and also
subject to such permission of the Development Commissioner of the
Zone, wherever it is specially required under the Export and
Import Policy, allow said unit in the Zone to clear any of the
said goods for being taken outside the Zone, to any other place
in India in accordance with the Export and Import Policy:
Provided that -
(a) such clearance of capital goods, may
be allowed on payment of duty on the depreciated value thereof
and at the rate in force on the date of payment of such duty;
Explanation .- The depreciation shall be allowed for the
period from the date of commencement of commercial production of
the said unit or where such goods have been received after such
commencement, from the date such goods have come into use for
commercial production to the date of payment of duty;
(b) such clearance of goods(including
empty cones, bobbins, co ntainers, suitable for repeated use)
other than those specified in clause (a) may be allowed on
payment of duty on the value at the time of procurement and at
the rate in force on the date of payment of such duty;
(c) such clearance of used packing
materials, such as cardboard boxes, polyethylene bags of a kind
unsuitable for repeated use without payment of any duty.
Explanation.- For the purpose of this
notification -
(a) "Export and Import Policy " means the Export and
Import Policy, 1997- 2002, published by the Government of India
in the Ministry of Commerce, vide notification
No.1(RE-99)/1997-2002, dated 31st March, 2000, as
amended from time to time;
(b) "Export Oriented Unit" means
a Hundred Percent Export Oriented Unit as approved by the Board
of Approvals appointed by the notification of the Government of
India in the Ministry of Industry, Department of Industrial
Policy and Promotion or the Development Commissioner concerned;
(c) "Export Processing Zone"
means the Export Processing Zone as notified by the notification
of the Government of India in the Ministry of Finance (Department
of Revenue) under section 3 of the Central Excise Act, 1944 ( 1
of 1944);
(d) " Electronic Hardware Technology Park (EHTP) unit "
means a unit established under and in accordance with the
Electronic Hardware Technology Park ( EHTP) Scheme notified by
the Government of India in the Ministry of Commerce, vide
notification No. 5( RE-95)/ 92-97 , dated 30th April,
1995 and approved by the Inter-Ministerial Standing Committee
appointed by notification of the Government of India in the
Ministry of Industry (Department of Industrial Development), No.
S.O. 117(E), dated the 22nd February, 1993;
(e) "Handbook of Procedures, Vol. I" means the Handbook
of Procedures, Vol. I, 1997- 2002 published by the Government of
India, Ministry of Commerce vide Public Notice No. (RE-2000)/
1997-2002 dated the 31st March, 2000;
(f) "Special Economic Zone" means
the Special Economic Zone as notified by the Government of India
in the Ministry of Commerce and Industry ;
(g) " Software Technology Parks (STP) Unit" means a
unit established under and in accordance with Software Technology
Parks(STP) Scheme notified by the Government of India in the
Ministry of Commerce vide notification No. 4 (RE-95) / 92-95,
dated 30th April, 1995 and approved by the
Inter-Ministerial Standing Committee appointed by the
notification of the Government of India in the Ministry of
Industry, Department of Industrial Development, No. S.O. 117(E),
dated the 22nd February, 1993.
ANNEXURE-I
No.--------------- Date-------------
FORM C.T.3
Certificate for removal of excisable goods under bond
This is to certify that:
- Mr./Messrs------------------------(Name and address)
is/are bona fide licensee holding licence No.---------------
valid upto ---------------------
- That he/they has/have executed a bond (General
Surety/General Security.
No.--------------------- date-------------------- for
Rs.-----------------with the Assistant Commissioner/ Deputy
Commissioner of Custom or Central Excise ----------------------
and as such may be permitted to remove
-----------------------(quantity) of
------------------(excisable goods) from the unit at
--------------------------- to their undertaking --------------
at--------------------------
- that the specimen signatures of his/their authorised
agent namely Shri ---------------are furnished herebelow duly
attested;
Specimen Signature Sd/- Central Excise
Officer- In-charge of
Owner or his authorised Agent Attested the
unit in Special Economic Zone
(RAJENDRA SINGH )
UNDER SECRETARY TO THE GOVERNMENT OF
INDIA
F.NO. 305/66/2000-FTT
|
