|
Regarding supply of furnace oil to 100% <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a>s requirement of separate
license
Circular No.
21dated 24th June 1997
It has been
brought to the notice of the Board by Ministry of Commerce and Petroleum and
Natural Gas that the 100% EOUs are facing problems because of differing
interpretations of the provisions of the Notification No. 13/ 81-Cus. It
provides for duty free import of specified goods for the purpose of manufacture
of articles for export out of India or for being used in connection with the
production or packaging of goods for export out of India by 100% EOUs approved
by the Board of Approvals, subject to the condition that the importer has been
granted necessary licence for the import of the goods for the said purpose. The
Commissioner is asking for a separate Licence for release of the furnace oil.
2.
In this connection, Ministry of Petroleum & Natural Gas and Oil
Companies have stated that only EOUs holding the import licence in their name
are entitled to get exemption from payment of the Customs duty. Further the
Petroleum products being canalised items would be procured by authorised Oil
Companies only.
3.
Ministry of Commerce have clarified that the Letter of Approval issued to
the units is itself a licence.
4.
I am directed to clarify, that letter of approval issued for procurement
of duty free furnace oil by the Board of Approval or Development Commissioner
may be treated as licence and the specified quantity of Furnace Oil and P.O.L.
product be released to the EOUs.
5.
The above provisions will also apply for procurement of petroleum
products by EOUs from indigenous sources.
6.
It may be stated that Notification No. 13/ 18-Cus. has since been
rescinded by Notification No. 53/ 97-Cus. dated 3rd June, 1997. The new
notification similarly provides that Fuel lubricants and other consumable
required for the Captive Power Plants including captive generating sets can be
imported duty free on the approval of Commissioner of Customs on the
recommendation of the Development Commissioner.
7. All pending cases
of clearance may also be decided in light of above clarification.
|