Notification No. 136 dated 10th
November 1994 (As amended by 112/95, 113/95, 11/97, 25/99, 2/2000, 40/2000,
29/2001, Notification No. 35 dated 24th June 2002)
In exercise of the powers conferred
by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1
of 1944), read with sub-section (3) of section 3 of the Additional Duties of
Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central
Government, being satisfied that it is necessary in the public interest so do,
hereby exempts excisable goods specified in the Annexure I to this notification
(hereinafter referred to as the said goods) when brought in connection with the
production or manufacture or packaging of articles specified in Annexure II to
this notification, as the case may be into a hundred percent export oriented
undertaking from the whole of -
(i)������� the
duty of excise leviable thereon under section 3 of the Central Excises and Salt
Act, 1944 (1 of 1944); and
(ii)��� the additional duty of excise leviable
thereon under sub-section (1) of section 3 of the Additional Duties of Excise
(Goods of Special Importance) Act, 1957 (58 of 1957),
subject to
the following conditions, namely:-
(a)��� the undertaking is approved by the Board of
Approval for hundred percent export oriented undertaking appointed by the
Central Government in exercise of the powers conferred by section 14 of the
Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules
made under that Act (hereinafter referred to as the Board);
(b)��� the said goods are brought directly to the
undertaking from the factory of production or from the warehouse and are used
in connection with the production or manufacture or packaging of goods meant
solely for export;
(ba)� such undertaking executes a bond in such form
and for such sum as may be prescribed by the Assistant Commissioner of Customs
or Central Excise to fulfil the export obligation and comply with the
conditions stipulated in this notification and the Export and Import Policy and
binding itself to pay on demand an amount equal to the duty leviable on the
goods and interest at the rate of fifteen per cent per annum on the said goods
from the date of duty free procurement of the goods till the payment of such
duty, if -
(i)���� in the case of capital goods, such goods
are not proved to the satisfaction of the Assistant Commissioner of Customs or
Central Excise to have been installed or otherwise used within the unit within
a period of one year from the date of procurement thereof or within such extended
period not exceeding five years as the Assistant Commissioner or Customs or
Central Excise may, on being satisfied that there is sufficient cause for not
using them as above within the said period, allow;
(ii)��� in the case of goods other than capital goods,
such goods are not proved to the satisfaction of the Assistant Commissioner of
Customs or Central Excise to have been used in connection with the production
or packaging of goods for export out of India or cleared for home consumption
within a period of one year from the date of procurement thereof or within such
extended period as the Assistant Commissioner of Customs or Central Excise may,
on being satisfied that there is sufficient cause for not using them as above
within the said period, allow;
(iii)� in the case of -
(a)����� goods as produced or packaged, such goods
have not been exported out of India, and
(b)����� unused goods(including containers and
packaging materials suitable for repeated use) as have not been exported or
cleared for home consumption, within a period of one year from the date of
procurement of such goods or within such extended period as the Assistant
Commissioner of Customs or Central Excise may, on being satisfied that there is
sufficient cause for not using as above, allow;�
(iv)��� in the case of raw materials, components,
spares and consumables (other than capital goods) procured duty free, the
undertaking fails to achieve Net Foreign Exchange Earning as a Percentage of
Exports (NFEP) and Export Performance (EP) as specified in Appendix-I of the
Export and Import Policy, within one year of procurement of such goods or
within such extended period not exceeding one year as the Assistant
Commissioner of Customs or Central Excise may, on being satisfied that there is
sufficient cause, allow:
Explanation: For the purposes of this
notification "Export and Import Policy" means the Export and Import
Policy, 1st April, 2002 - 31st March, 2007, published by
the Government of India in the Ministry of Commerce & Industry vide
notification No.1/2002-07, dated 31st March, 2002, as amended from
time to time.
Provided
that the Commissioner of Customs or Central Excise may
extend the period for achievement of Net Foreign Exchange as a Percentage of
Exports (NFEP) or Export Performance (EP) for further period, not exceeding
five years, from the date of procurement;
(c)��� such undertaking exports out of India
hundred percent or such other percentage as may be fixed by the Board, of
articles manufactured wholly or partly from the said goods for the period stipulated
by the Board or such extended period as may be specified by the Board;
(d)��� on clearance of the articles produced or
manufactured and allowed to be sold in India, such undertaking shall pay duty
of excise leviable on such articles in terms of section 3 of the� said Central Excise and Salt Act;
������� Provided that where such articles
are not excisable, excise duty equal in amount to that leviable on the inputs
obtained under this notification and used for the purpose of manufacture of
such articles, which would have been paid but for the exemption under this
notification, shall be payable at the time of clearance of such articles;
(e)��� the
manufacturer of the said goods follows the procedure contained in rules 11 and
20 of the Central Excise Rules, 2002;
(f)���� the
undertaking follows the procedure contained in the Central Excise (Removal of
Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,
2001, with the modification that a certificate in Form CT-3 annexed to this
notification as Annexure-III shall be used by the Central Excise officer in
charge of the user industry in place of an application in the form at
Annexure-I provided in the said Rules;
(g)��� on the clearance of capital goods or office
equipments, as may be allowed by the Board, such undertaking shall pay excise
duty on depreciated value and at the rate in force at the time of payment of
such excise duty.
������� Provided that in case of capital
goods, the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner
of Customs or Central Excise may, subject to such conditions as he may specify,
permit destruction of such capital goods, without payment of duty, inside the
unit, or outside the said unit, where it is not possible or permissible to
destroy the same within the said unit, in the presence of Customs or Central
Excise Officer;
(h) on
the clearance of goods other than those specified in condition (g) above, as
may be allowed by the Assistant Commissioner, such undertaking shall pay excise
duty on the full value at the time of their clearance from the factory of
manufacture and at rates in force on the date of payment of such excise duty.
(i)���� The Assistant Commissioner of Customs or Central Excise or
Deputy Commissioner of Customs or Central Excise, as the case may be, subject
to such conditions as he may specify in this behalf, permit destruction of
rejects and wastes without payment of duty within the unit, or outside the said
unit, where it is not possible or permissible to destroy the same within the said
unit, in the presence of Customs or Central Excise officer.
(j)���� Notwithstanding
anything contained in this notification, the Assistant Commissioner of Customs
or Central Excise or Deputy Commissioner, of Customs, or Central excise, as the
case may be, may permit the goods specified against Item number 4 and Item
numbers 14 to 21 of the Annexure-I to be taken out to the fields or farms of
contract farmers of the unit for production or in connection therewith; and to
bring back the produce to the unit for exports, in accordance with provisions
of Export and Import Policy and Handbook of Procedures Volume I and subject to
the following conditions:
(i)���� the unit shall produce an agreement between
the unit and contract farmer(s) to the Assistant Commissioner of Customs or Central
Excise or Deputy Commissioner of, Customs or Central Excise, as the case may
be;
(ii)��� the fields/ farms of the
contract farmers shall be located within the jurisdiction of the same
Commissioner of Customs or Central Excise, as the case may be, as that of the
unit;
(iii)�� in case of units, which has
been in existence for at least two years and engaged in export of agriculture
or horticulture products, supply of inputs and other equipment to the fields/
farms of the contract farmers shall be allowed to the unit on furnishing a bank
guarantee equal to the 50 per cent. of the duty forgone on the goods so
transferred to the fields or farms of the contract farmers;
(iv)��� in case of units other than
those mentioned in the clause (iii) above, the unit shall be required to
furnish a bank guarantee equal to the total duty forgone on the goods so
transferred to the fields or farms of contract farmers;
(v)��� prior to import of the
goods, the unit shall apply to the Assistant Commissioner of Customs or Central
Excise or Deputy Commissioner of Customs or Central Excise, as the case may be,
giving the details, such as, number of contact farmers and location of their
farms, measurement of the farms or fields under contact farming, input-output
norms of production as fixed by Directorate General of Foreign Trade and their
projected requirements and after examination of the such projected requirement,
the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner
of Customs or Central Excise, as the case may be, would give permission for the
import or procurement of the same on annual basis.
(vi)��� the unit shall be required
to have a premise(s) duly bonded under section 58 of the said Customs Act, for
storage, of imported or domestically procured inputs and capital equipment and,
of final products manufactured or produced therefrom;
(vii)�� in case of failure of the
unit to bring back the agriculture or horticulture produce so produced in the
fields/ farms of contract farmers to the unit, as per the norms notified by the
Directorate General of Foreign Trade, within the same season or such extended
period as may be permitted by the Commissioner of Customs or Central Excise, as
the case may be, due to any reason including natural calamity or loss of crop,
the unit shall be required to pay the duty equal to the duty forgone on the
inputs so taken out to the fields or farms of the contract farmers;
(viii)� in respect of equipment specified at Item
numbers 14 to 20 and transferred to the fields or farms of the contract
farmers, at any point of time as may be decided by the Assistant Commissioner
of Customs or Central Excise or Deputy Commissioner of, Customs or Central
Excise, as the case may be, the unit shall be required to account for the goods
so transferred to the fields or farms of the contact farmers.
(ix)��� in case of non-accountal of goods so
transferred or use of the goods in farms or fields other than those declared to
the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of
Customs or Central Excise, as the case may be, the unit shall pay duty forgone
on such un-accounted goods along with the interest at the rate of twenty
percent. per annum within 10 days of receipt of demand notice, and in case of
failure to pay the same, the Assistant Commissioner of, Customs or Central
Excise or Deputy Commissioner of, Customs or Central Excise, as the case may
be, may en-cash the bank guarantee and disallow the duty free imports/
procurement under the notification;
Explanation:
The depreciation shall be allowed for the period commencing from the date of
commercial production by the Undertaking or the date of receipt the goods
specified in the condition (g) above, in the Undertaking, whichever is later,
till the date of payment of duty.
ANNEXURE I
1. Green
House equipment accessories, heated rooting tables, propagation trays, seeding
machines.
2. Growing
media such as Peat Moss (including peat Litres) (whether or not agglomerated),
Pearlite/ Vermiculate, Rockwool, Cocoa Pet, hydrocorn, Foam based medium and
other cultivation medium.
3. Office
equipment spares and consumables thereof.
4.
Fertilizers and chemicals for per and post harvest treatment such as micro
nutrients, plant and growth regulators and other organic and inorganic
substances used for plant nutrition, insecticides, fungicides weedicides,
herbicides, and the like.
5. Animal
feed such as cattle feed and poultry feed.
6. Veterinary
medicines including vaccines.
7. Packaging
materials including machinery and equipment for packaging.
8. Cooling
equipment for cold room, storage room, pro-cooling chambers and its accessories.
9. Sorting
equipment, Grading equipment, Packing equipment and temperature control or
humidity control equipment.
10. Power
generating sets.
11.
Refrigeration and air-conditioning equipment for fitment on transport vehicles.
12. Spare
part for the maintenance of goods mentioned at item No. 8 to l1 above.
13. High
Speed Diesel for power generating sets as recommended by the Board of Approvals.
14. Filters
15. Dripliers, Driplines and Drip Fittings
16. Micro Sprinklers and Misters
17. Agriculture Sprinklers
18. Fertilizers Tanks
19. Valves
20. Fertilizer Pumps and Chemical Injections
21. Seeds����������
ANNEXURE II
1.
Live animals.
2.
Bird�s eggs (fresh) in shells of Heading 04.04.
3.
Live trees and other plants; bulbs, roots and the like, cut flowers and
ornamental foliage.
4.
Fresh vegetables; whole uncut sun dried vegetables; Fresh and uncut/sun dried
roots and tubers of Chapter 7.
5.
Fresh and uncut/sun dried edible fruits and nuts of Chapter 8.
6.
Fresh or sun dried plants and parts of such plants.
7.
Silk worm cocoons and raw silk.
8.
Processed vegetables and fruits, meat, and edible meat offal falling within
various Chapters of the Central Excise Tariff.
Note: The Chapters and Headings referred to in the
Annexure are those of the Schedule to the Central Excise Tariff Act, 1985 (5 of
1986).
ANNEXURE III
No. ____________
Date __________________ �
FORM CT 3:
CERTIFICATE FOR REMOVAL OF EXCISABLE GOODS UNDER BOND
This is to certify that:
(1)��� Mr./ Messrs
____________________________________________________________ (Name and address)
is/ are bonafide licensee holding licence no.
_____________________________________ valid upto ___________________.
(2)��� That he/ they has/ have executed a bond in
Form B-16 (General Surety/ General Security) No. _____________________ date
_____________ for Rs. _____________________ with the Assistant Commissioner of
Central Excise ___________________________________________________ and as such,
may be permitted to remove _________________ (Qty.) of __________ (excisable
goods) from the unit at __________________ to their undertaking� __________________ at
___________________________.
(3)������ That
the specimen signature of his/ their agent namely Shri ________________________
are furnished here below duly attested:
Specimen Signatures of owner or his
authorised agent __________________________�������
Central
Excise Officer-in-Charge of the 100% EOU�
________________
Sd/- Attested
Officer-in-charge of Security