Exemption to goods manufactured in a factory as a job work and used by the specified undertakings in the manufacture of goods for supply to Ministry of Defence - 70/92 - Central Excise - Tariff

Recinded vide Notification No. 9/2017-Central Excise Dated 30th June, 2017 w.e.f. 1st day of July, 2017.

Exemption to goods manufactured in a factory as a job work and used by the specified undertakings in the manufacture of goods for supply to Ministry of Defence

Notification No. 70/92-CE, Dated. 17-6-92

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods manufactured in a factory as a job work (hereinafter referred to as "said goods"), and used by the undertakings specified in the Table hereto annexed (hereinafter described as ""said manufacturer"") in or in relation to the manufacture of final products for supply to the Ministry of Defence for official purposes from the whole of the duty of excise leviable thereon, which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).

Explanation I : For the purposes of this notification, the expression "job work" means processing or working upon of raw materials or semi-finished goods supplied to the job worker, so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any operation which is essential for the aforesaid process.

Explanation II: For the purposes of this notification, the expression "said goods" does not include

(a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of the final products;

(b) packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value of the packaging materials is being availed of for packaging any final products;

(c) packaging materials the cost of which is not included or had not been included during the preceding financial year in the assessable value of the final products under section 4 of the Central Excises Act, 1944 (1 of 1944);

(d) Cylinders for packaging gases;

(e) bags or sacks made out of fabric (whether or not coated, covered or laminated with any other material) woven from strips or tapes of plastics; or

(f) plywood for tea chests.

2. The exemption contained in this notification shall be subject to the following conditions, namely:

(i) the said manufacturer gives an undertaking to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise having jurisdiction over the factory of the job worker that the said goods shall be used-

(a) in or in relation to the manufacture of final products in his factory;

(b) in the manufacture of goods by any other job worker for further use in or in relation to the manufacture of the final products in his factory;

(ii) the said manufacturer shall produce an evidence that the said goods have been used;

(iii) the final product shall be supplied to the Ministry of Defence for official purposes and the said manufacturer shall produce evidence to the effect that the final products have been so supplied; and

(iv) the said manufacturer undertakes the responsibility of discharging the liabilities in respect of central excise duty leviable on the final products.

TABLE

1. Hindustan Aeronautics Ltd.

2. Bharat Electronics Ltd.

3. Bharat Dynamics Ltd.

4. National Instruments Ltd., Calcutta.

5. National Aerospace Laboratories.

6. Indian Ordnance Factories belonging to the Central Government.

¹[7. Mishra Dhatu Nigam.]

¹[8. Bharat Earth Movers Limited.]

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Note :

As amended by Notification No. 140/94-CE, Dated. 15-11-1994; 66/95-CE, Dated. 16-3-1995; 96/95-CE, Dated. 26-5-1995; and

1. Has been inserted vide Notification No. 7/98 CE dated 2/6/1998