Notification No. 299 dated 30^th November 1992 (As amended by notification nos. 141/93, 183/93, 105/94, 137/94, 181/94, 101/95)

In exercise of the powers conferred by sub-sections (1) of section 25 of the Customs Act, 1962(52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts materials imported into India, against a Self Declared Pass Book issued in terms of para 54 of the Export and Import Policy, 1^st April, 1992-31^st March, 1997, from the whole of the duty of Customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the  additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely: -

(i)     that the materials imported are covered by a Self Declared Pass Book (hereinafter referred to as the said Pass Book), issued in the format prescribed under Annexure II to the Public Notice of the Government of India in the Ministry of Commerce, No.37/92-97, dated the 12^th August 1992 as amended from time to time;

(ii)    that the importer at the time of clearance of the imported materials-

(a)      produces proof of having executed a bond or a legal undertaking before the Licensing Authority concerned, for complying with the conditions of this Notification; and

(b)      makes a declaration before the Assistant Commissioner of Customs binding himself to pay on demand an amount equal to the duty leviable but for the exemption, on the imported materials in respect of which the conditions specified in this Notification have not been complied with;

Provided that a bond or legal undertaking and the declaration shall not be necessary in respect of imports made after discharge of export obligation in full, as evidenced by endorsement of Licensing Authority in the said Pass Book;

(iii)    that the said Pass Book is produced before the proper officer of Customs at the time of clearance of imported goods out of Customs  control;

Provided that no such imported materials shall be permitted clearance under this Notification unless a debit entry has been made, in the said Pass Book, by the proper officer of Customs;

(iv)    that the imports and exports  are undertaken from sea ports at Bombay, Calcutta, Cochin, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam or through any of the airports at Ahmedabad, Bangalore, Bombay, Calcutta, Delhi, Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad and Madras, or through any of the Inland Container Depots at Bangalore, Coimbatore, Delhi, New  Gauhati Goods Shed, Moradabad, Ludhiana and Hyderabad:

Provided that the Commissioner of Customs may by special order and subject to such conditions as may be specified by him, permit imports and exports from any other sea port, airport, land customs station or inland container depot;

(v)    that the export obligation is discharged, within two years of issue of the said Pass Book or within such extended period as may be granted by the Director General of Foreign Trade, by exporting goods manufactured in India in respect of which-

(a)      no input stage credit is obtained under rule 56A or 57A of the Central Excise Rules, 1944 (hereinafter referred to as the said Rules);

(b)      facility under rule 191 A or 191B as in force immediately before the 1^st October, 1994, or rule 12(1)(b) or rule 13(1)(b) of the said rules, has not been availed; and

(c)       drawback has not been claimed either under section 74 of the Customs Act, 1962 or Customs and Central Excise Duties Rules, 1971 in case the said Pass Book has been issued without quantity restrictions for each of the items of import.

Provided that this restriction shall not apply to grant of drawback of Central Excise Duties paid on inputs not appearing in the said Pass Book in cases where the said Pass Book has been issued with quantity restriction on each of the items of import;

Provided further that in a case where the said Pass Book has been issued with quantity restriction on each of the items of import and any item included in the said Pass Book is not imported duty free, the drawback of both Customs and Central Excise duties on such item shall be admissible only after the Pass Book is modified by the Licensing Authority to delete that item from the said Pass Book;

(vi)    exempt materials shall not be disposed of or utilised in any manner, except for utilisation in discharge of export obligation, before the export obligation under the said Pass Book has been discharged and export proceeds realised:

Provided that exempt material may be transferred to supporting manufacturer whose name is entered in the said Pass Book;

Provided further the Acetic Anhydride in respect of which the benefit of this notification is claimed shall be utilised by the importer in his own factory or in the factory of any other manufacturer indicated in the said pass book even after discharge of export obligation and realisation of export proceeds.