Amendment to Notification No. 140/91-Cus. - G.E. No. 115 - 10/97 - Customs -Tariff

Amendment to Notification No. 140/91-Cus. - G.E. No. 115 Notification No. 10/97-Cus. Dated 17-2-1997 In exercise of the powers conferred by sub-section (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 makes the following further amendments in notification of the Government of India, in the Ministry of Finance, Department of Revenue, No. 140/91-Cus., dated 22nd October, 1991, namely :- In the said notification, - (1) In the opening paragraph, - (a) for the portion beginning with the words, brackets and figures "In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962)" and ending with the words "subject to the following conditions, namely" the following shall be substituted, namely :- "In exercise of the powers conferred by sub-section (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 goods specified in the Table below (hereinafter referred to as the goods) when imported into India for the purpose of development of software, data entry and conversion, data processing, data analysis and control or data management for export out of India, by a Software Development Unit under the Software Technology Parks, under the Hundred Per cent Export Oriented Scheme approved by the Inter-Ministerial Standing Committee for Hundred Per cent Export Oriented Units in the Electronics Hardware Technology Parks (EHTP) and Software Technology Parks (STP) (hereinafter referred to as the Standing Committee) appointed by the notification of the Government of India in the Ministry of Industry, Department of Industrial Development, No. S.O. 11(E), dated the 22nd February, 1993 from the whole of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the second mentioned Act, subject to the following conditions, namely :-" (b) for condition (2), the following condition shall be substituted, namely :- "(2) the importer carries out the development of software, data entry and conversion, data processing, data analysis and control or data management under customs bond and subject to such other conditions as may be specified by the Assistant Commissioner of Customs in this behalf;"; (c) for condition (3), the following condition shall be substituted, namely :- "(3) the importer exports out of India hundred per cent or such other percentage as may be fixed by the Standing Committee, of software developed, data entry and conversion done, data processed, data analysed and controlled or data management done wholly or partly from the goods for the period stipulated by the Standing Committee or such extended period as may be specified by the Standing Committee;"; (d) in condition (4), - (i) in clause (a), for the words "development of software", the words, "development of software, data entry and conversion, data processing, data analysis and control or data management" shall be substituted; (ii) in clause (c), for the words "software developed", the words "software developed, data entry and conversion done, data processed, data analysed and controlled or data management done" shall be substituted; (e) for the condition (9), the following condition shall be substituted; namely : "(9) Notwithstanding anything contained in this notification, the exemption contained herein shall also apply to goods which on importation into India are used for the development of software, data entry and conversion, data processing, data analysis and control or data management within the unit and such software, data entry and conversion, data processing, data analysis and control or data management even if not exported out of India, are allowed to be sold in India in physical form under and in accordance with the said Import and Export Policy, as amended from time to time, and in such quantity and subject to such limitations and conditions as may be specified in this behalf by the Standing Committee on payment of duty of excise leviable on such software, data entry and conversion, data processing, data analysis and control or data management under section 3 of the Central Excise Act, 1944 (1 of 1944) : Provided that such sale of software, data entry and conversion, data processing, data analysis and control or data management within India shall not be allowed through data communication link or telecommunication link;"; (f) in condition (10), for the words "or the software developed", the words "or, the software developed, data entered and converted, data processed, data analysed and controlled or data management done" shall be substituted; (g) for condition (12), the following shall be substituted, namely : "(12) The telematic infrastructural equipments, if any, imported by the importer may also be utilised for the export of software developed, data entered and converted, data processed, data analysed and controlled or data management done by any other software development, data entry and conversion, data processing, data analysis and control or data management unit"; (h) in condition (13), for the words, "development of software" the words "development of software, data entry and conversion, data processing, data analysis and control or data management" shall be substituted; (2) for paragraph 2, the following shall be substituted, namely : "2. Notwithstanding anything contained in paragraph 1, in the case of a unit engaged in the development of computer software, data entry and conversion, data processing, data analysis and control or data management, the exemption contained therein shall also apply to goods imported by such unit for any or all of the said purposes for export and for providing consultancy services for any or all such activities on site abroad : Provided that - (a) the conditions stipulated in this notification are complied with by the said unit; and (b) the procedure specified by the Commissioner of Customs is followed. Explanation. - "with effect from 13th August, 1993 the consultancy fees received by software development units in convertible foreign currencies for consultancy services development of software, data entry and conversion, data processing, data analysis and control or data management on site abroad shall be deemed to be exports for the purposes of fulfilment of export obligation under the notification."