Circular No. 16 /2007- Customs
F. No. : 305/15/2006-FTT (DGEP)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Directorate General of Export Promotion
New Delhi, the 18th April, 2007
To,
All Chief Commissioners of Customs/ Central Excise,
All Commissioners of Customs /Central Excise
Sir/Madam,
Sub: - Inter Unit Transfer of Capital goods from one EOU/STP/EHTP unit to
another EOU/STP/EHTP unit -reg.
- A doubt has arisen regarding scope of the term ‘capital goods’ for inter unit
transfer from one EOU/STP/EHTP unit to another EOU/STP/EHTP unit in terms of
notification No. 52/2003-Cus dated 31.03.2003 as amended. A view has been
expressed that since Sl. No. 1 of Annexure-I to notification No. 52/2003-Cus
dated 31.03.2003 specifically lists ‘capital goods’, items listed at Sl.No. 2 to
30 of the said Annexure-I cannot be considered as ‘capital goods’ and
consequently inter unit transfer of these goods cannot be permitted in terms of
condition (4b) of the opening paragraph of notification No. 52/2003-Cus dated
31.03.2003. This issue was also discussed during the Chief Commissioner’s
Conference held on 15-16 December, 2006.
- The matter has been examined. Sl.No. 1 of Annexure-I to notification No.
52/2003-Cus refers to the term ‘capital goods’. However, this term has not been
defined in the notification. Some of the items mentioned in other Sl. Nos. of
the Annexure to this notification, which are specifically listed for being
eligible for the exemption, may also qualify as ‘capital goods’ depending upon
their use in a particular case (such as overhead cranes, jigs & fixtures, moulds
etc). It is viewed that ‘capital goods’ listed at Sl.No. 1 and some of the goods
covered under other Sl.Nos. are not mutually exclusive.
- Hence it is clarified that specific items listed at Sl. Nos. other than Sl.No.
1 of the Annexure to the notification may also be allowed the facility of inter
unit transfer, if these items qualify to be considered as ‘capital goods’
depending upon their use.
- The above clarification would also apply to capital goods
covered under other annexures to this notification and under annexures
to notification No. 22/2003-C.E. dated 31.03.2003 as amended.
- Wide publicity may please be given to these instructions by way of issuance
of Trade/Public Notice. Difficulties, if any, in implementation of these
instructions, may be brought to the notice of the Directorate General of Export
Promotion, New Delhi.
- This issues with the approval of CBEC.
- Receipt of this circular may kindly be acknowledged.
(Pawan Kumar Jain)
Addl. Director General (EP)