Exemption to Capital Goods supplied to a Manufacturer Exporter - 152/90 - Central Excise - Tariff

Exemption to Capital Goods supplied to a Manufacturer Exporter

Notification No. 152/90-C.E.

Dated 16-10-1990

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 capital goods, when supplied to a manufacturer exporter (hereinafter in this notification referred to as the "ultimate exporter") holding an import licence issued under and in accordance with paragraph 197 of the Import and Export Policy for importing the said capital goods, 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), subject to the following conditions, namely :-

(i) before clearance of the said capital goods, the manufacturer produces before the Assistant Collector of Central Excise having jurisdiction over his factory -

(a) a certificate from the Chief Controller of Imports and Exports issued in favour of the ultimate exporter to the effect that the said capital goods are required by the ultimate exporter for fulfilment of export obligation specified in the provisions of the said paragraph 197;

(b) evidence to the effect that the ultimate exporter has executed a bond accompanied by a bank guarantee for full amount of duty of excise leviable on the said capital goods but for the exemption contained herein, before the licensing authority undertaking to comply with all the conditions and obligations specified in the provisions of the-said paragraph 197;

(ii) the manufacturer of the said capital goods follows the procedure specified in rules 156A and 156B of the Central Excise Rules, 1944 as modified by rule 173N of the said Rules.

Explanation : In this notification, -

(i) "capital goods" means any plant, machinery, equipment or accessories required by the ultimate exporter for manufacture of goods;

(ii) "Import and Export Policy" means the Import and Export Policy, April 1990-March 1993 published vide Public Notice of the Government of India in the Ministry of Commerce No. l-ITC(PN) 90-93, dated the 30th March, 1990, as amended from time to time;

(iii) "licensing authority" means an authority competent to grant a licence under the Import (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947).