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Raw materials and components required for the manufacture of goods to be
supplied to the Oil and Natural Gas Commission or the Gas Authority of India
Limited or the Oil India Limited
Notification
No. 513 dated 30th December 1986 (As
amended by notification nos. 123/88, 263/88, 309/88, 336/88, 122/89, 239/89,
285/89, 130/90, 289/90, 263/92, 102/93, 134/93, 155/93, 138/94, 7/95, 101/95)
The
Central Government exempts materials used in the manufacture of goods to be
supplied to the Oil and Natural Gas Commission Ltd., or the Gas Authority of
India Limited or the Oil India Ltd. as the case may be, when imported into
India, from the whole of the duty of customs leviable thereon which is specified
in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the whole
of the additional duty leviable thereon under Section 3 of the Second mentioned
Act subject to the following conditions, namely:-
(1)
that the importer has been granted necessary import licence or release
order on the concerned canalising agency by the licensing authority before 31st
March, 1994, except where such licence has been issued in terms of Transitional
arrangements notified in paragraph 2, in the notification of the Government of
India in the Ministry of Commerce No. 40 (RE)/92-97, dated the 9th
May, 1994 for the import or release of materials for the aforesaid purpose and
the same is produced at the time of clearance for debit by the proper officer of
customs;
(2)
that the import licence contains the following endorsements inter-alia:-
(a)
the description, quality and value of materials, allowed to be imported
under the said licence:
(b)
the description and quantity of materials, allowed to be imported duty
free; and
(c)
the description and quantity of goods to be manufactured out of, or with,
the imported materials,
(3)
that the importer executes a bond in such form and for such sum as may be
specified by the said licensing authority binding himself to fulfil the
obligations and conditions stipulated in this notification and to pay on demand,
an amount equal to the difference between the duty leviable on the said
materials but for the exemption contained herein and the duty paid at the time
of importation as are not proved to the satisfaction of the said licensing
authority to have used for the aforesaid purpose; and
(4)
that the importer produces evidence to the satisfaction of the said
licensing authority, for the purpose of discharging the liability in respect of
said Customs duty as well as for discharging the obligation against the said
licence.
(5)
the importer makes a declaration at the time of clearance of imported
materials before the Assistant Commissioner of Customs, that he shall pay on
demand, an amount equal to the duty leviable but for the exemption on the
imported materials in respect of which conditions specified in this notification
have not been complied with;
(6)
that the exemption materials are utilized for the manufacture of goods
which are supplied to the Oil and Natural Gas Corporation Limited or the Gas
Authority of India Limited or the Oil India Limited, as the case may be, and
that no portion of such materials shall be loaned, transferred, sold or disposed
of in any other manner:
Provided
that where obligations under the licence have been fully discharged, sale
proceeds realized, and bond executed in terms of condition (3) remedied by the
licensing authority, the importer may, if the benefit of input stage credit
under rule 56A or rule 57A of Central Excise Rules, 1944, has not been availed
in respect of goods manufactured, transfer the imported materials to any other
person.
Provided
further that no such transfer of materials imported against a licence issued
after 31st March, 1993 shall be made after discharge of export
obligation, realisation of sale proceeds and redemption of bond by the licensing
authority and such materials may be used by the importer for manufacture of any
other goods.
(1A)
Where benefit of this notification is sought by a person other than the
licencee, such benefit shall be allowed against the licence only if it bears
endorsement of transferability by the licensing authority;
Provided
that no such endorsement of transferability shall be made by the licensing
authority-
(i)
unless the obligations against the licence have been discharged, sale
proceeds realized, and the bond executed by the importer in terms of condition
(3) redeemed;
(ii)
where the benefit of input stage credit under rule 56A of rule 57A of
Central Excise Rules, 1944, has been obtained; and
(iii)
where the licence has been issued prior to 1.4.1992 or after 31st
March, 1993.
Explanation:
In this notification-
(i)
�licensing authority� means the Director General of Foreign Trade
appointed under section 6 of the Foreign Trade (Development and Regulation)
Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence
under the said Act;
(ii)
�materials� means-
(a)
raw materials, components, intermediates, consumables, and parts required for
manufacture of goods to be supplied;
(b)
spares, including mandatory spares, within a value limit of 5% of the value of
the licence issued upto 31st March, 1993, which are required to be
supplied along with the goods so manufactured;
(c)
packing material required for the packing of goods to be supplied.
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