Duty Exemption to Excisable Goods Produced or Manufactured in an <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a>/
EHTP Unit/ STP Unit
Central
Excise Notification No. 23 dated 31st March 2003
In
exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the Central
Excise Act), the Central Government, being satisfied that it is necessary in
the public interest so to do, hereby exempts excisable goods of the
description specified in column (3) of the Table below, and falling within the
Chapter, heading No. or sub-heading No. of the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Central
Excise Tariff Act), specified in the corresponding entry in column (2) of the
said Table, produced or manufactured in an export oriented undertaking or an
Electronic Hardware Technology Park (EHTP) Unit or a Software Technology Park
(STP) Unit and brought to any other place in India in accordance with the
provisions of Export and Import Policy and subject to the relevant conditions
specified in the Annexure to this notification, and referred to in the
corresponding entry in column (5) of the said Table, from so much of the duty
of excise leviable thereon under section 3 of the Central Excise Act as
specified in the corresponding entry in column (4) of the said Table.
TABLE
|
Sr.
No.
|
Chapter
or heading No. or sub-heading No.
|
Description
of Goods
|
Amount
of Duty
|
Conditions
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
|
1.
|
Any
Chapter
|
All
goods
|
Duty
of excise leviable thereon as is equivalent to the special additional
duty of customs leviable on such goods under section 3 A of the Customs
Tariff Act, 1975 (51 of 1975) read with proviso to sub-section (1) of
section 3 of the said Central Excise Act, 1944.
|
1
|
|
2.
|
Any
Chapter
|
All
goods
|
In
excess of the amount equal to fifty per cent of the duty leviable under
section 3 of the Central Excise Act:
Provided
that
the duty payable in accordance with this notification in respect of the
said goods shall not be less than the duty of excise leviable on the
like goods produced or manufactured outside the export oriented
undertaking, Electronic Hardware Technology Park unit or Software
Technology Park unit, which is specified in the said Schedule read with
the any other relevant notification issued under sub-section (1) of
section 5A of the Central Excise Act:
Provided
further that
nothing contained in the first proviso shall apply to the goods which
are chargeable to �Nil� rate of duty leviable under section 12 of
the Customs Act, 1962 read with any other notification for the time
being in force issued under sub-section (1) of section 25 of the said
Customs Act.
Illustration:
Assuming product X has the value Rs. 100 under section 14 of the
Customs Act, 1962 and is chargeable to basic custom duty of 25% ad
valorem, additional duty of 16% ad valorem and special additional duty
of 4% ad valorem. The computation of duty required to be paid would be
as follows:
Basic
Customs duty = Rs. 25/-
Value
for the purpose of calculation of additional duty= Rs. 100/- + Rs. 25/-
= Rs. 125/-
Additional
duty= 16% of Rs.125/-= Rs. 20/-
Value
for the purpose of special additional duty if leviable = Rs. 100/- + Rs.
25/- + Rs. 20/- = Rs. 145/-
Special
additional duty if leviable= 4% of Rs. 145/-= Rs. 5.8/-
Total
duty payable but for this exemption= Rs. 25/-+ Rs. 20/- + Rs. 5.80/-= Rs.
50.80/-
50%
of aggregates of the duties of customs= 50% of Rs.50.80/-= 25.40/-
Duty
required to be paid in accordance with this notification is Rs. 25.40/-
provided it is not less than the duty of excise leviable on like goods
produced or manufactured outside the oriented undertaking, etc.
|
2
|
|
3.
|
Any
Chapter
|
All
goods other than those referred to in Sr. Nos. 5, 6 and 7 of this Table.
|
In
excess of amount equal to aggregate of duties of excise leviable under
Section 3 of the Central Excise Act or under any other law for the time
being in force on like goods produced or manufactured in India other
than in an export oriented undertaking, if sold in India.
|
3
|
|
4.
|
Any
Chapter
|
All
goods produced or manufactured wholly from the raw materials produced or
manufactured in India, other than those referred to in Sr. Nos. 5, 6 and
7 of this table.
|
In
excess of amount equal to 30% of the duty payable under section 3 of the
Central Excise Act, 1944.
Illustration:
Assuming product X has the value Rs. 100 under section 14 of the
Customs Act, 1962 and is chargeable to basic custom duty of 25% ad
valorem, special additional duty of 4% ad valorem and not chargeable
to additional duty. The computation of duty required to be paid would
be as follows:
Basic
Customs duty = Rs. 25/-
Value
for the purpose of special additional duty if leviable = Rs. 100/- + Rs.
25/- = Rs. 125/-
Special
additional duty if leviable= 4% of Rs. 125/-= Rs. 5.0/-
Total
duty payable but for this exemption= Rs. 25/-+ Rs. 5.00/-= Rs. 30.00/-
Thirty
per cent. of the aggregates of the duties of customs= 30% of Rs.30.00/-=
9.00/-
Duty
required to be paid in accordance with this notification = Rs. 9.00/-
|
4
|
|
5.
|
52
|
Cotton
fabric (not containing any other textile material), not subjected to any
process,
|
In
excess of amount equal to fifty per cent. of the aggregate duty, not
reduced by any other notification for the time being in force:
Provided
that
the fifty per cent. of the aggregate duty leviable on the goods shall be
apportioned in the ration 2:1 between the duty leviable under the said
Central Excise Tariff Act and the Additional Duties of Excise (Goods of
Special Importance) Act, 1957 (58 of 1957).
Explanation:
For removal of doubt, it is clarified that the value of the goods
shall be determined in terms of the section 4 of the Central Excise
Act.
|
5
|
|
6.
|
52,
54 or 55
|
Fabrics
of �
(i)
cotton (containing any other textile material),
(ii)
man-made fibres, -
not
subjected to any process
|
In
excess of amount equal to fifty per cent. of the aggregate duty, not
reduced by any other notification:
Provided
that
the fifty per cent. of the aggregate duty leviable on the goods shall be
apportioned in the ration 2:1 between the duty leviable under the
Central Excise Tariff Act, 1985 (5 of 1986) and the Additional Duties of
Excise (Goods of Special Importance) Act, 1957 (58 of 1957).
Explanation:
For removal of doubts, it is clarified that the value of the goods
shall be determined in terms of the section 4 of the Central Excise
Act.
|
5
|
|
7.
|
60
|
(i)
Knitted or crocheted fabrics of cotton, whether or not processed;
(ii)
Knitted or crocheted fabrics of man-made fibres, not subjected to any
process,
|
In
excess of amount equal to fifty per cent. of the aggregate duty, not
reduced by any other notification:
Provided
that
the fifty per cent. of the aggregate duty leviable on the goods shall be
apportioned in the ration 2:1 between the duty leviable under the said
Central Excise Tariff Act and the said Additional Duties of Excise
(Goods of Special Importance) Act.
Explanation:
For removal of doubts, it is
clarified that the value of the goods shall be determined in terms of
the section 4 of the Central Excise Act.
|
5
|
|
8.
|
71
|
Plain
Gold Jewellery
|
In
excess of Rs. 250 per 10Gms.
|
6
|
|
9.
|
71
|
Studded
Gold Jewellery
|
In
excess of 5% ad valorem.
|
6
|
|
10.
|
71
|
Plain
Silver Jewellery
|
In
excess of Rs. 500 per Kg.
|
6
|
|
11.
|
Any
Chapter
|
Rags,
trimmings and tailor cuttings arising in the course of manufacture of
ready made garments
|
In
excess of �Nil�.
|
7
|
|
12.
|
05.01
|
Waste
of fish or crustaceans, mollusks or other aquatic invertebrates
|
In
excess of �Nil�.
|
-
|
|
13.
|
23.01
|
Castor
oil cakes,
|
In
excess of �Nil�.
|
8.
|
|
14.
|
23.02
|
Guar
meal
|
In
excess of �Nil�.
|
9
|
|
15.
|
52.02
|
Cotton
waste (including yarn waste and garneted stock)
|
In
excess of �Nil�.
|
-
|
|
16.
|
53.07,
53.10, 5702.12, 5703.20, 58.01, 58.02, 58.06 or 6305.10
|
Yarn
of jute and goods of jute.
|
In
excess of �Nil�.
|
10
|
|
17.
|
Any
Chapter
|
Bone
meal.
|
In
excess of �Nil�.
|
10
|
|
18.
|
Any
Chapter
|
Rice
husk and shark, residue of wheat, residue of pulses; and residue of any
other cereal.
|
In
excess of �Nil�.
|
10
|
|
19
|
Chapter
9
|
Tea
waste, and coffee waste.
|
In
excess of �Nil�.
|
10
|
|
20.
|
Any
Chapter
|
Waste
of Castor oil seed, waste of caster oil derivatives; waste of sesame
seed; and waste of any other oil seed.
|
In
excess of �Nil�.
|
10
|
|
21.
|
Any
Chapter
|
Waste
from food industries.
|
In
excess of �Nil�.
|
10
|
|
22.
|
Any
Chapter
|
All
goods
|
In
excess of �Nil� when cleared to a person holding an advance release
order issued by the licensing authority against an Advance Licence in
terms of paragraph 4.1.1 of the Export and Import Policy, read with
relevant provisions of the Handbook of Procedures, Volume I, or a back
to back inland letter of credit issued by a bank in terms of Paragraph
4.1.9 of the Export and Import Policy read with relevant provisions of
the Handbook of Procedures, Volume �I.
|
11
|
|
23.
|
Any
Chapter
|
All
goods
|
In
excess of amount equal to additional duty of customs leviable under
section 3 of the Customs Tariff Act, 1975 (51 of 1975) on similar goods
if imported, when cleared to a person holding an advance release order
issued by the licensing authority against a Duty Free Replenishment
Certificate in terms of Paragraph 4.2 of the Export and Import Policy
read with relevant provision of the Handbook of Procedures, Volume-I or
a back to back inland letter of credit issued by a bank in terms of
Paragraph 4.1.9 of the Export and Import Policy read with relevant
provisions of the Handbook of Procedures, Volume-I.
|
11
|
ANNEXURE
|
Sr.
No.
|
Conditions
|
|
1.
|
If
the goods being cleared into Domestic Tariff Area are not exempted by the
State Government from payment of sales tax.
|
|
2.
|
If,
-
(i)
the goods are cleared into Domestic Tariff Area in accordance with
sub-paragraphs (a), (b), (d) and (h) of Paragraph 6.8 of the Export and
Import Policy;
(ii)
exemption shall not be availed until Deputy Commissioner of Customs or
Assistant Commissioner of Customs or Deputy Commissioner of Central Excise
or Assistant Commissioner of Central Excise, as the case may be, is
satisfied with the said goods including Software, Rejects, Scrap, Waste or
Remnants;
(a)
being cleared in Domestic Tariff Area, other than scrap, waste or remnants
are similar to the goods which are exported or expected to be exported
from the units during specified period of such clearances in terms of
Export and Import Policy;
(b)
the total value of such goods being cleared under sub-paragraphs (a), (b)
(d) and (h) of Paragraph of the Export and Import Policy, into Domestic
Tariff Area from the unit does not exceed 50% of the Free on Board value
of exports made during the year (starting from 1st April of the
year and ending with 31st March of next year) by the said unit;
(c)
the balance of the production of the goods which are similar to such goods
under clearance into Domestic Tariff Area, is exported out of India or
disposed of in Domestic Tariff Area in terms of Paragraph 6.9 of the
Export and Import Policy;
(iii)
clearance of goods into Domestic Tariff Area under sub-paragraphs (a),
(b), (d) and (h) of Paragraph 6.8 of the Export and Import Policy shall be
allowed only when the unit has achieved positive Net Foreign Exchange
Earning; and
(iv)
clearance of goods into Domestic Tariff Area under sub-paragraph (a) of
Paragraph 6.8 of the Export and Import Policy in excess of 5% of free on
board value of exports made by the said unit during the year (starting
from 1st April of the year and ending with 31st
March of the next year) shall be allowed only when the unit has achieved
positive Net Foreign Exchange Earning.
|
|
3.
|
If,
-
(i)
the goods are produced or manufactured wholly from the raw materials
produced or manufactured in India;
(ii)
the goods are cleared into Domestic Tariff Area in accordance with
sub-paragraphs (a), (b), (d) and (h) of Paragraph 6.8 of the Export and
Import Policy; and
(iii)
such finished goods, if manufactured and cleared by the unit other than
export-oriented undertaking are not wholly exempt from duties of Excise or
are not chargeable to �NIL� rate of duty.
|
|
4.
|
If,
-
(i)
the goods are produced or manufactured wholly from the raw materials
produced or manufactured in India;
(ii)
such finished goods are cleared into Domestic Tariff Area in accordance
with sub-paragraphs (a), (b), (d) and (h) of Paragraph 6.8 of the Export
and Import Policy; and
(iii)
the goods, if manufactured and cleared by the unit other than
export-oriented undertaking are wholly exempt from duties of Excise or are
chargeable to �NIL� rate of duty.
|
|
5.
|
If
the goods are cleared into Domestic Tariff Area in accordance with
sub-paragraphs (a), (b), (d) and (h) of Paragraph 6.8 of the Export and
Import Policy.
|
|
6.
|
If
the goods are cleared into Domestic Tariff Area in accordance with
Paragraph 6.8 ( c) of the Export and Import Policy.
|
|
7.
|
If
the percentage of waste material in the form of rags, trimmings and tailor
cutting does not exceed the percentage fixed in this regard by the Board
of Approvals for export oriented undertakings or as the case may be, by
the Development Commissioner.
|
|
8.
|
If
the goods are manufactured from indigenous castor oil seeds on indigenous
plant and machinery.
|
|
9.
|
If
the goods are manufactured wholly from indigenous guar seeds.
|
|
10.
|
If
the goods are manufactured wholly from indigenous raw materials.
|
|
11.
|
If,
-
(i)
the Advance Licence holder/ Duty Free Replenishment Certificate holder
produces the said advance release order specifying therein the quantity,
description (including the technical specifications) and the value of each
of the said goods permitted to be cleared in accordance with this
notification or, as the case may be, his copy of back to back inland
letter of credit specifying therein the name and address of the indigenous
supplier in original before the proper officer of Central Excise or
Customs; and
(ii)
the quantity and the value of each of the items are debited by the proper
officer of Central Excise or Customs in the said advance release order or
as the case may be, the back to back inland letter of credit, before
allowing clearance of the said goods.
|
2. The notifications of the Government of India
in the erstwhile Ministry of Finance, Department of Revenue vide Nos.
103/93-Central Excise, dated 27th December, 1993 (G.S.R. 783 (E),
dated the 27th December, 1993, 2/95-Central Excise, dated the 4th
January, 1995 (G.S.R 9(E), dated the 4th January, 1995), 6/97-Central
Excise, dated 1st March, 1997 (G.S.R. 112 (E), dated the 1st
March, 1997), 8/97-Central Excise, dated the 1st March, 1997 (G.S.R.
114(E), dated the 1st March, 1997), 20/97-Central Excise, dated the
11th April, 1997 ( G.S.R 219 (E), dated the 11th April,
1997), 13/98-Central Excise, dated the 2nd June, 1998 (G.S.R 308 (E),
dated the 2nd June, 1998), 28/2001-Central Excise, dated the 16th
May, 2001 (G.S.R. 359 (E), dated the 16th May, 2001), and
20/2002-Central Excise, dated 1st March, 2002 (G.S.R. 141(E), dated
the 1st March, 2002) are hereby rescinded.
3.
This notification shall come into force on the 1st day of
April, 2003.
Explanation:
For the purposes of this notification, -
(i)
� aggregates duty� means aggregate of, -
(i)
the duty of excise specified in the First Schedule of the Central Excise
Tariff Act, 1985 (5 of 1986); and
(ii)
the duty of excise specified in the First Schedule to the Additional Duties of
Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
(ii)
�Export and Import Policy� means the Export and Import Policy, 2002 �
2007 published by the Government of India in the Ministry of Commerce and
Industries vide notification No. 1(RE-2003) /2002-2007, dated the 31st
March, 2003, as amended;
(iii)
�export oriented undertaking� has the same meaning as assigned to
�hundred percent. export oriented undertaking� in clause (ii) to the
Explanation of sub-section (1) of section 3 of the Central Excise Act, 1944 (1
of 1944);
(iv)
�Electronic Hardware Technology Park unit � means a unit established under
and in accordance with the Electronic Hardware Technology Park (EHTP) Scheme
published by the Government of India in the Ministry of Commerce vide
notification No. 5(RE- 95) 92-97, dated 30th of April, 1995 and
approved by an Inter Ministerial Standing Committee appointed by the
Government of India in the Ministry of Industry (Department of Industrial
Development) vide notification No. S.O.117 (E) dated the 22nd
February, 1993;
(v)
�Handbook of Procedures, Volume I� means the Handbook of Procedures,
Volume-I, 2002-2007 published by the Government of India in the Ministry of
Commerce and Industry vide Public Notice No. 1(RE-2003) /2002-2007, dated the
31st March, 2003, as amended from time to time;
(vi)
�Software Technology Park unit� means a unit established under and in
accordance with Software Technology Parks (STP) Scheme published by the
Government of India in the Ministry of Commerce vide notification No.
4/(RE-95)/92-95, dated 30th April, 1995 and approved by an Inter
Ministerial Standing Committee appointed by the Government of India in the
Ministry of Industry (Department of Industrial Development) vide notification
No. S.O. 117(E) dated the 22nd February, 1993;
(vii)
�Domestic Tariff Area� means India except special economic zones and
export oriented undertaking, Software Technology Park units and Electronic
Hardware Technology Park units.
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