Exemption to goods supplied for defence and other specified purposes - 64/95 - Central Excise - Tariff

S.No.  

Description of goods  

Conditions  

(1)  

(2)  

(3)  

1.

All goods

If, --

(i) donated for the welfare of the defence personnel;

(ii) it is certified on the relevant clearance documents, by the producer or manufacturer, or the owner or keeper of the warehouse in which such goods are deposited, that the goods are intended to be donated for the above purpose without discrimination on the grounds of religion, race or caste or any of them and distributed among or utilised for the welfare of the defence personnel without making any charge therefor;

(iii) the goods are sent direct from the place of production, factory of manufacture, or, as the case may be, from the warehouse to the following agencies -

(a) the National Defence Fund;

(b) Citizens' Central Council;

(c) the Ministry of Defence; or

(d) the Government of any State or Union Territory or any authority nominated by such Government to receive such donations; and

(iv) the producer, manufacturer, owner or keeper of the warehouse produces before the proper Central Excise Officer within two months of the date of removal of the goods from the place of production or factory, or, as the case may be, from the warehouse, or within such extended period as the Commissioner of Central Excise may in any case, allow, a certificate from any of the above agencies that the goods have been received by that agency for the purpose for which the donation was made.

2.

All goods

If --

(i) donated to the National Defence Fund or the Ministry of Defence;

(ii) it is certified on the relevant clearance documents, by the producer or manufacturer of the goods, or the owner or keeper of the warehouse in which such goods are deposited, that the goods are intended to be donated as above;

(iii) the goods are sent direct from the place of production, factory of manufacture, or, as the case may be, from the warehouse to the National Defence Fund or the Ministry of Defence; and

(iv) the producer, manufacturer, owner or keeper produces before the proper Central Excise Officer within two months of the date of removal of the goods from the place of production or factory, or, as the case may be, from the warehouse, or within such extended period as the Commissioner may in any case, allow, a certificate from the National Defence Fund or the Ministry of Defence that the goods have been received by them.

3.

All goods other than
cigarettes

If supplied as stores for consumption on board a vessel of the ¹Indian Navy or Coast Guard.

²⁴3A.

Fuels falling under Chapter Heading 2710

If,-

(a) manufactured and supplied by ²⁹[any public sector oil company] as stores for consumption on board a vessel of the Indian Navy or Coast Guard; or

(b) procured by ²⁹[any public sector oil company] from any other manufacturer of the said fuels and supplied as stores for consumption on board a vessel of the Indian Navy or Coast Guard:

Provided that-

(i) ³⁰[such public sector oil company] obtains registration under rule 9 of the Central Excise Rules, 2002, with the Assistant Commissioner or Deputy Commissioner of Central Excise having jurisdiction over the concerned supply point;

(ii) maintains records of receipt and supplies of these fuels;

(iii) submits a monthly reconciliation statement to and proves to the satisfaction of the jurisdictional central excise officer that such fuels have been supplied as stores for consumption on board a vessel of Indian Navy or Coast Guard; and

(iv) failing which ³⁰[such public sector oil company] pays the excise duty leviable on fuels not properly accounted for along with interest."

4.

¹⁸Cigarettes falling under heading 2402

If,--

(i) supplied as stores for consumption on board a vessel of the ¹Indian Navy or Coast Guard;

(ii) the manufacturer follows such procedure as may be specified in this regard by the Commissioner of Central Excise having jurisdiction over his factory; and

(iii) the Commanding Officer of the ¹Indian Navy or Coast Guard Ship issues to the officer-in-charge of the bonded warehouse from where the supply of cigarettes has been made, a certificate, within a period of six months from the date of supply of cigarettes on board the said ship, to the effect that the cigarettes supplied as stores on board the ¹Indian Navy or Coast Guard Ship have been consumed on board the said ship.

5.

All goods

If--

(i) supplied to the Project SKYLARK under the Ministry of Defence; and

(ii) before clearance of the goods, a certificate from the Project Director, Project SKYLARK to the effect that such goods are intended for assembly, erection and installation of Naval V.L.F. Transmitting Station (Tamil Nadu) under the said Project SKYLRK, is produced to the proper officer.

6.

Parts of motor vehicles falling under Chapter 45, 48, 68, 73, 85, ²87, or motor vehicles in completely knocked down or semi-knocked down form

If--

(i) used in a Central Government Ordnance Factory for the manufacture of vehicles falling under Chapter 87 of the said Schedule; and

(ii) such use is elsewhere than in the factory of the production of such parts, the procedure set out in ¹⁰the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods)Rules, 2001,is followed.

²⁵7.

Components, raw materials, tools, lubricants and propellants for and including systems and sub-systems of launch vehicles and satellite projects; scientific and technical instruments, apparatus, equipments (including  computers); including their accessories, parts, spare parts, components and raw materials

If,-

(i) meant for use in a launch vehicle project or a satellite project of the Indian Space Research Organisation or the Government of India, Department of Space; and

(ii) the manufacturer produces, before the clearances of the said goods, a certificate from an officer not below the rank of an Assistant Scientific Secretary in the Indian Space Research Organisation giving the description and quantity of each type of the said goods for which the exemption under this notification is claimed and certifying that the said goods are intended for use in a project mentioned above.

8.

Equipment and stores

If,-

(i) used for the systems and sub-systems of the Integrated Guided Missiles to be developed under the Integrated Guided Missiles Development Programme of the Government of India in the Ministry of Defence;

(ii) before clearance of the said goods, a certificate from the Chairman or Member Secretary of Programme Management Board or the Director of Management Services, Defence Research and Development Laboratory, in the Ministry of Defence to the effect that the said goods are intended for the aforesaid use, is produced to the proper officer;

³(iii) omitted

(iv) the aforesaid use is elsewhere than in the factory of production of the said goods, the manufacturer produces within five months from the date of clearance or within such extended period as the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise may allow in this regard, a certificate from the said Chairman or Member Secretary or as the case may be the said Director, indicating the date of the receipt of the said goods by that organisation and certifying that they have been actually put to the aforesaid use.

9.

³Omitted

10.

Internal Combustion
engines and electric
storage batteries falling under chapters 84 or 85

If, -

(i) such engines are designed for use as prime movers for transport vehicles and given for that purpose some special shape, size, or quality which would not be essential for any other purpose;

(ii) it is proved to the satisfaction of the officer not below the rank of Assistant Commissioner of Central Excise that they are intended to be used as original equipment parts in the manufacture of vehicles falling within Chapter 87 of the said Schedule, manufactured in a Central Government Ordnance Factory; and

(iii) such use is elsewhere than in the factory of their production, the procedure set out in ¹⁰the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001,is followed.

11.

³Omitted

12.

Underwater batteries including cells of such batteries failing under ¹⁹heading 85 07

If,

(i) manufactured for use by the Indian Navy; and

(ii) the concerned officer of the Indian Navy or the Directorate of Production and Inspection (Naval), not below the rank of Commander, furnishes a certificate, before removal, that the said goods are required for fitment to a submarine vessel including a Torpedo and Chariot of the Indian Navy and shall be so used.

13.

³Omitted

14.

Bullet proof jackets

If,-

(i) supplied to the ⁴Armed Forces of the Union or to the Police Forces of the States or the Union Territories; and

(ii) before the clearance of the said goods, in each case, an officer not below the rank of a Joint Secretary in the Ministry of Defence or in the Ministry of Home Affairs, as the case may be, recommends grants of this exemption indicating the full description and quantity of the said goods to be supplied to the forces mentioned above.

15.

All goods

If manufactured and consumed within the factory of production of the bullet proof-jackets for supply to the ⁴Armed Forces of the Union or to the Police Forces of the States or the Union territories.

16.

All goods

If,-

(i) supplied to the Programme SAMYUKTA under the Ministry of Defence; and

(ii) before clearances of the goods, a certificate from the Programme Director, Programme SAMYUKTA to the effect that such goods are intended for the said Programme SAMYUKTA is produced to the proper officer.

17.

All goods

If,-

(i) supplied to the Programme SANGRAHA under the Ministry of Defence; and

(ii) before clearances of the goods, a certificate from the Programme Director, Programme SANGRAHA, Department of Defence Research and Development, to the effect that such goods are intended for the said Programme SANGRAHA, is produced to the proper officer.

⁶18

All goods

If-

(i) supplied to the Programme SAMYUKTA under the Ministry of Defence; and

(ii) before clearances of the goods, a certificate from the Programme Director, Programme SAMYUKTA to the effect that such goods are intended for the said Programme SAMYUKTA, is produced to the proper officer.

Explanation - Nothing contained in this exemption shall have effect on or after the ¹⁷1st day of June, 2006

⁷19.

All equipments; stores, systems and sub-systems; design, development or construction aids; computer hardwares and softwares required for design or development or construction or manufacturing activities connected with the programme, including jigs, fixtures and tools required for the programme.

If,-

(i) the order or contract or letter of intent is placed on the manufacturer of the said goods by Headquarters ⁸ATVP or its authorised work centres; and

(ii) before clearance of the said goods, a certificate from the ⁹Project Director or Director of the ATV Programme (of the rank of a Real Admiral of the Indian Navy or of equivalent rank of the joint secretary to the Government of India), to the effect that the said goods are intended for the said use, is produced to the proper officer.

¹¹20.

Pistol 9mm. falling under Chapter 93

If,-

(i) manufactured by M/S Bharat Dynamics Limited, Hyderabad and supplied to the Police Forces of the States or the Union territories; and

(ii) before clearance of the said goods, an officer not below the rank of a Joint Secretary in the Ministry of Home Affairs, government of India recommends grant of this exemption indicating the full description and quantity of the said goods to be supplied to the said force.

¹²21.

All goods

If, -
(a) the said goods are supplied for use in construction of warships of the ¹⁴Indian Navy or Coast Guard; and

(b) before clearance of the said goods, a certificate from an officer not below the rank of a ¹⁵Rear Admiral of the Indian Navy or Coast Guard or Director General of Coast Guard or any other officer of the Indian Navy or Coast Guard equivalent to the Joint secretary to the Government of India, to the effect that the said goods are intended for the said use, is produced to the proper officer.

¹⁶22.

All goods

If,-

(i) supplied to the Programme DIVYA DRISHTI under the Ministry of Defence; and

(ii) before clearances of the goods, a certificate from the Director, Defence Electronic Research Laboratory or Chief Managing Director, Electronics Corporation of India Limited, to the effect that such goods are intended for the said Programme DIVYA DRISHTI, is produced to the proper officer.

²⁰23

All goods

If-

(i) supplied to the SAMYUKTA Programme under the Ministry of Defence; and

(ii) before clearances of the goods, a certificate from the Programme Director, SAMYUKTA Programme to the effect that such good are intended for the said SAMYUKTA Programme, is produced to the proper officer."

²¹24

Equipment and stores

If,-

(i) used for the systems and sub-systems of Project ASTRA of the Government of India in the Ministry of Defence;

(ii) before clearance of the said goods, a certificate from the Project Director, ASTRA, Defence Research and Development Laboratory, Hyderabad, in the Ministry of Defence to the effect that the goods are intended for the aforesaid use is produced to the proper officer; and

(iii) the aforesaid use is elsewhere than in the factory of production of the said goods, the manufacturer produces within five months from the date of clearance or within such extended period as the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, may allow in this regard, a certificate from the said Project Director, ASTRA, indicating the date of receipt of the said goods by that organisation and certifying that they have been actually put to the aforesaid use.  

²³25

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence

If,-

(i) supplied to the Programme LR-SAM under the Ministry of Defence; and  

(ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer.

Explanation. - Nothing contained in this exemption shall have effect on or after the 31^st day of May, 2011.

²⁷[26

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for Programme AD of Ministry of Defence

 If,-

(i) supplied to the Programme AD under the Ministry of Defence; and  

(ii) before clearance of the said goods, a certificate from the Member Secretary, Programme Management Board, Programme AD or Programme Director AD, Defence Research and Development Laboratory, Hyderabad , to the effect that such goods are intended for the said Programme AD, is produced to the proper officer.

Explanation. - Nothing contained in this exemption shall have effect on or after the 16^th  day of July,2016.]

²⁸[27

Ballistic grade aramid yarn

If-

(a)   the goods are used in the manufacture of Ballistic grade aramid fabric required for the manufacture of ³²[bullet proof jackets and bullet proof helmets] for supply to the armed forces of the Union under the Ministry of Defence or the Police Forces of the States or the Union- territories;

(b) the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed; and

(c) it is proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction in the matter that such goods are intended to be used for the purpose specified at (a) above

28

Ballistic grade aramid fabric

If,-

(a) the goods are used for the manufacture of ³³[bullet proof jackets and bullet proof helmets] for supply to the armed forces of the Union under the Ministry of Defence or the Police Forces of the States or the Union-territories;

(b) the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed; and

(c ) it has been proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction in the matter that such goods are intended to be used for the purpose specified at (a) above.]

³¹[29

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence

If,-

(i) supplied to the Programme LR-SAM under the Ministry of Defence; and

(ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer.

Explanation. – Nothing contained in this exemption shall have effect on or after the 25th day of November, 2011.]

³²[30

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence

If,-

(i) supplied to the Programme LR-SAM under the Ministry of Defence; and 

(ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer.

Explanation. – Nothing contained in this exemption shall have effect on or after the 25th day of May, 2012.]

³⁴[31.

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence

If,-

(i) supplied to the Programme LR-SAM under the Ministry of Defence; and  

(ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer.

Explanation. – Nothing contained in this exemption shall have effect on or after the 25^th day of November, 2012.]

³⁵[32

Equipment and stores

If,-

(i) used for the systems and sub-systems of Project ASTRA of the Government of India in the Ministry of Defence;

(ii) before clearance of the said goods, a certificate from the Project Director, ASTRA, Defence Research and Development Laboratory, Hyderabad, in the Ministry of Defence to the effect that the goods are intended for the aforesaid use is produced to the proper officer; and

(iii) the aforesaid use is elsewhere than in the factory of production of the said goods, the manufacturer produces within five months from the date of clearance or within such extended period as the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, may allow in this regard, a certificate from the said Project Director, ASTRA, indicating the date of receipt of the said goods by that organisation and certifying that they have been actually put to the aforesaid use. 

Explanation. – Nothing contained in this exemption shall have effect on or after the 1^st day of March, 2013.]

³⁶[33

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence

If,-

(i) supplied to the Programme LR-SAM under the Ministry of Defence; and 

 (ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer.

 Explanation. – Nothing contained in this exemption shall have effect on or after the 25th day of May, 2013.]

³⁷[34

Equipment and stores

If,-

(i) used for the systems and sub-systems of Project ASTRA of the Government of India in the Ministry of Defence;

(ii) before clearance of the said goods, a certificate from the Project Director, ASTRA, Defence Research and Development Laboratory, Hyderabad, in the Ministry of Defence to the effect that the goods are intended for the aforesaid use is produced to the proper officer; and

(iii) the aforesaid use is elsewhere than in the factory of production of the said   goods, the manufacturer produces   within five months from   the date of   clearance or within   such extended period as the Deputy Commissioner of  Central  Excise or the Assistant Commissioner of Central Excise, as the case may be, may allow in this regard,   a certificate from   the said Project   Director, ASTRA, indicating the date of receipt of the said goods by that organisation and certifying that they have been actually put to the aforesaid use.

Explanation. - Nothing contained in this exemption shall have effect on or after the ³⁸[1st day of January, 2017].]

³⁹[35.

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence

If,- 

(i) supplied to the Programme LR-SAM under the Ministry of Defence; and    

(ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer. 

Explanation. – Nothing contained in this exemption shall have effect on or after the 1^st day of January, 2016.]

If,-

(i) the said goods are manufactured by the Indian Offset Partner (hereinafter referred to as IOP) of the contractor to the National Technical Research Organisation, (hereinafter referred to as NTRO);

(ii) the said goods are supplied by the IOP for use in the radars acquired by the NTRO from the contractor;

(iii) before clearance of the said goods, the manufacturer furnishes a duty exemption certificate from an officer of the NTRO, not below the rank of Joint Secretary to the Government of India, -

     (a) indicating the details of the purchase order placed by the NTRO on the contractor;

     (b) indicating the details of the purchase order placed by the contractor on the IOP, along with the quantity and description of goods required to be supplied by the IOP to the contractor; and

     (c) certifying that the said goods are intended for use in the radars acquired by the NTRO from the contractor.