Special Exemption – EOU / STP etc. - Central Excise Practice Manual (OLD) - Central Excise

SPECIAL EXEMPTION SCHEME - EOU, STP, EHTP etc. Excise duty exemption has been granted to goods manufactured and cleared by Export Oriented Units (EOU), Software Technology Park (STP), Electronic Hardware Technology Park (EHTP) through the following notifications: - 1. Notification No. 24/2003-CE: Exemption from excise duty to goods manufactured by EOU's. This notification provides, exemption to all goods produced or manufactured by EOU's from whole of excise duty leviable thereon under Central Excise Act with respect to basic duty, additional duty (Goods of Special Importance) and additional duty (Textiles and Textile Articles). This notification came into force on 1 st April, 2003. 2. Notification NO. 23/2003-CE: Excise Exemption on Goods Cleared to DTAby EOUs/EHTP/STP Units. This notification provides, exemption to specified goods, from so much of excise duty as specified in the 'Table' annexed with this notification, produced or manufactured in an EOUs/EHTP/STP Units and cleared to DTA in accordance with the provisions of Foreign Trade Policy and conditions as specified in the 'Annexure' to this notification. This notification came into force on 1 st April, 2003. 3. Notification. No. 22/2003-CE: EOUs/EHTP/STP Units - Goods Manufacturing and Packaging or Job Work for Export - No Excise Duty This notification provides exemption to all goods as specified in Annexure-I, II, IV, V to this notification and to all goods as specified in the first schedule to the Central Excise Act, produced and manufactured by EOU's/ EHTP/ STP, from the whole of the duty leviable thereon under Central Excise Act with respect to basic duty, additional duty (Goods of Special Importance) and additional duty (Textiles and Textile Articles) cleared for exports, subject to the conditions as mentioned in this notification. 4. Notification No. 24/98-CE: Exemption to marine freight containers cleared from 100% EOU into DTA for exports. This notification provides, exemption to marine freight containers, falling under chapter 86, produced or manufactured in 100% EOU/ EPZ/ FTZ from the whole of excise duty leviable thereon under section 3 of the Central Excise Act, 1944 when cleared to DTA i.e. (sold in India ) for export. Clearance of goods in DTA should be under bond of amount as specified by AC/ DC of Customs in charge of the 100% EOU that the said containers shall be exported within 6 months or within such extended time as may be specified by the AC of customs on showing of sufficient cause, otherwise in the event of failure of removal of goods in time the duty liability will become payable. They are also require to furnish the evidence with AC that containers have been sold within the specified time. Other Notifications are 1. Notification No. 34/2006-CE:Exemption to hotel or stand alone restaurant and other service provider under Served from India Scheme . This notification provides, exemption to hotel or stand alone restaurant and service provider from the whole of the duty leviable under Central Excise Act in respect to basic duty, additional duty (Goods of Special Importance) and additional duty (Textiles and Textile Articles) when cleared against a Served from India Scheme Certificate, subject to the conditions as mentioned in this notification. 2. Notification No. 145/89-CE: Exemption to specified goods falling under Chapter 85 when removed for sale, in foreign currency, to the duty free shops at Customs airports. This notification provides exemption to the goods specified in the 'Table' annexed with this notification when brought into duty free shops in the arrival halls at the customs airports from the factories of their manufacture situated in India for sale, in foreign currency, to passengers arriving from abroad, from the whole of the duty of excise leviable thereon which is specified in the said Schedule, subject to the conditions and procedure as specified in this notification. Meanings of some terms: - 1. Export Oriented undertaking (EOU) - EOU has the same meaning as assigned to "100% 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). 2. ElectronicHardwareTechnologyPark (EHTP) unit - EHTP units 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. 3. SoftwareTechnologyPark (STP) unit - STP 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. 4. Domestic Tariff Area (DTA) - DTA means India except special economic zones and export oriented undertaking, Software Technology Park units and Electronic Hardware Technology Park units. 5. Foreign Trade Policy - 'Foreign Trade Policy' means the Foreign Trade Policy, 1st September, 2004-31st March, 2009 published by the Government of India in the Ministry of Commerce and Industry vide notification No. 1/2004-09, dated the 31st August, 2004, as amended from time to time