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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 15/2017- Customs
Room 227B, North Block
New Delhi, the 19th April, 2017
To,
All Principal Chief Commissioners/Chief Commissioners of
Customs/ Customs (Preventive)
All Principal Chief Commissioners/Chief
Commissioners of Customs & Central Excise
All Principal
Commissioners/Commissioners of Customs/Customs (Preventive)
All Principal
Commissioners/Commissioners of Customs & Central Excise
Sir/Madam,
Subject: Rescinding Board Circular F. No. 528/213/87-Customs (TU)
-reg.
Attention is invited to Board Circular F. No. 528/213/87-Cus. (T.U.) ICD
dated 08th Aug, 1987. In the said circular, Board had stipulated that once a
contract is registered either for initial setting up or for substantial
expansion of an existing plant etc, the imports made become classifiable under
the heading 9801 of the customs tariff liable to duty at the project rate. Such
goods forming part of the contract and assessed under CTH 9801 lose their
identity and cannot be classifiable on merits under any other heading of the
Customs Tariff. Hence any differential rate of duty prescribed by exemption
notification on individual goods (other those for goods specifically cqvered
under CTH 9801) will not come into play for the assessment of project goods.
However, Supreme Court has not accepted this view and has allowed benefit of
individual notifications even for imports assessed under CTH 9801.
In view of the above position, Board has decided to rescind the said
circular. Therefore, Circular F. No. 528/213/87-Cus. (T.U.) ICD dated 08th Aug, 1987
is rescinded.
Yours faithfully,
(Zubair Riaz)
Director (Customs)
[F.
No.450/10/2017-CuslV]
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