| Date: |
17-01-1997
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| Notification No: |
Central Excise Circular No 289/1997
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding whether air-conditioners are covered by notification No. 1/95-CE dated 4.1.95
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Regarding whether air-conditioners are covered by notification No.
1/95-CE dated 4.1.95
Circular
No. 289 dated 17th January 1997
Representations
have been received to the effect that consequent to Board's letter of even
number date 26.8.96 wherein it was mentioned that the benefit on notification
No. 1/ 95-CE dated 4.1.95 cannot be extended to goods, inter - alia,
air-conditioners used for maintenance/ repair of machinery, computer, etc.,
field formations are not allowing the benefit of the said notification even to
those cases where such air-conditioners are required and essential for the
manufacture or production of goods by a 100% EOU/ EHTP/ STP unit. It has been
stated that air-conditioners in these cases can be covered under the description
'Capital Goods' specified in the aforesaid notification.
The matter has been examined by the Board.
On
the similar issue, the Customs Wing has issued a Circular No. 57/96' dated
29.11.96 from F.No. 305/ 90/ 94-FTT (Copy enclosed) wherein it has been
clarified that wherever air-conditioners are required and necessary for the
manufacture or production of goods by 100% EOU/EHTP/STP Units in EPZ, they will
be treated as Capital Goods and allowed duty free clearance under the relevant
notifications issued in this regard.
It
has been decided by the Board that the instructions contained in aforesaid
Customs Circular should be applied, mutatis mutandis, to notification No.
1/95-CE dated 4.1.95. Accordingly, Board's letter of even no. dated 26.8.96 is
modified to this extent.
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