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Regarding Eligibility of Materials for Laying Synthetic Athletic Track
and Wooden Flooring System for Indoor Stadia under Notification No. 146/ 94 -
Cus
Customs
Circular No. 70 dated 25th October 2002
I
am directed to refer to the subject mentioned above and to say that a doubt has
been raised as to whether material for laying athletic synthetic track and
wooden flooring system for indoor stadia imported on behalf of the Sport
Authority of a State Government for national games are eligible for duty
exemption under notification No. 164/94-Cus, dated 13.07.94 or under
notification No. 21/2002-Cus, dated 1.3.2002. The raw materials imported for
laying synthetic athletic track are stated to be Regupur 012 Wearcoat, SBR/ EPDM
Gummigranulat, Acrylic Resurfacer, Methylene Chloride, Line Paint A Compound,
Aluminium Rails, Sporting Tools, Insulation Tools. The wooden flooring system
for indoor stadia is stated to consist of wooden strips of various sizes,
grooved and sawn, paint, nails, adhesives, etc.
2.
Notification No. 146/94-Cus, exempts sports goods, sports equipment and
sports requisites and their spares, accessories and consumables, imported by a
National Sports Federation, under a certificate issued by the Sports Authority
of India or by Sport Authority of India or by the Sports Authority of concerned
State for use in a national or international championship or competition.
Notification No. 21/2002-Cus, Sl. No. 391 exempts synthetic tracks and
artificial surfaces of hading 95.06 provided they are imported under the
�scheme for laying synthetic tracks & artificial surfaces� of the
Department of Youth Affairs & Sports and a certificate to this effect from
the said Department is produced. This notification vide Sl. No. 392, also
exempts, specified goods for laying of synthetic tracks and artificial surfaces
of heading 95.06 provided the goods are imported by a National Sports Federation
under a certificate issued by the Sports Authority of India or by Sports
Authority of India for use in a National or international championship. This
notification vide Sl. No 393 further exempts requisites for games and sports
falling under Chapter 95 provided the apex body of that or the Sports Authority
of the concerned State certificates that the requisites for games and sports are
required to be used in a national or international championship or competition.
3.
The matter has been examined by the Board. After a careful consideration
of the matter it has been decided by the Board that the said goods, i.e., goods
mentioned in paragraph 1 above may not covered by notification No. 21/2002-Cus,
but the benefit of notification No. 146/94-Cus, would be available. The crux of
the matter is whether the aforesaid goods can be considered as sports requisites
to be eligible for benefit of notification No. 146/ 94-Cus, The dictionary
meaning of word �requisite� is a thing which is necessary for achievement of
a specified end. Therefore, any item required for playing any game/ sport is a
requisite for sports. Synthetic tracks and artificial surfaces being essential
for playing sports/ games are, undoubtedly sports requisites. It follows that
the material required for laying them would also be sports requisites. The said
items imported for laying of laying of synthetic track and wooden flooring are
essential for playing games and are therefore captured by the term �sport
requisites� mentioned in notification No. 146/94-Cus, Even if a contrary view
is taken that these items by themselves are not sports requisites, they would
fall in the category of consumables relating to sport requisites. In either
case, exemption benefit would be available. The exemption provided under
notification No. 146/ 94-Cus, is wide enough to include all kinds of sports
requisites falling within any chapter of the Customs Tariff and therefore,
exemption may not be denied to such goods merely on a technical ground or taking
a narrow meaning of the terms sports requisite.
4.
In fine, it is clarified that the goods listed in paragraph 1 above would
be covered by notification No. 146/94-Cus. The Custom House may kindly take note
of the same and decide the pending cases. Difficulties, if any faced in the
implementation of above instructions may be brought to the notice of the board.
Please
acknowledge receipt of this Circular.
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