Exemption to materials required for manufacture of capital goods for supply to the fertilizer plants under the procedure of international competitive bidding - 103/93 - Customs -Tariff

Exemption to materials required for manufacture of capital goods for supply to the fertilizer plants under the procedure of international competitive bidding Notification No. 103/93-Cus. Dated 16-3-1993 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 materials required for the manufacture of capital goods to be supplied to the fertilizer plants if the supply is made under the procedure of international competitive bidding in terms of paragraph 56(v) of the Export and Import Policy, 1 April 1992 - 31 March 1997 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC(PN)92-97 dated the 31st March, 1992, amended from time to time, when imported into India from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (1) that the importer has been granted necessary import licence or release order on the concerned canalising agency by the licensing authority for the import or release of materials for the aforesaid purpose, and the same is produced at the time of clearance for debit by the proper officer of Customs; (2) that the import licence contains the endorsement specifying inter alia - (a) the description, quantity, and the value of materials allowed to be imported under the said licence; (b) the description and quantity of materials allowed to be imported duty free; and (c) the description and quantity of capital goods to be manufactured out of, or with, the imported materials. (3) the importer furnishes proof of having executed a bond in such form and for such sum as may be specified by the said licensing authority, binding himself to fulfil the obligations and conditions stipulated in this notification; (4) the importer makes a declaration at the time of clearance of imported materials before the Assistant Collector of Customs that he shall pay, on demand, an amount equal to the duty leviable but for the exemption on the imported materials in respect of which the conditions specified in this notification have not been complied with; (5) that the importer produces evidence to the satisfaction of the said licensing authority, for the purpose of discharging the liability in respect of customs duty as well as for discharging the obligations against the said licence; (6) that the exempt materials are utilised for the manufacture of capital goods for supply to fertilizer plants under the procedure of interna tional competitive bidding and that no portion of such materials shall be loaned, transferred, sold or disposed of in any other man ner : Provided that where obligations under the licence have been fully discharged, sale proceeds realised, and bond executed in terms of condi tion (3) redeemed by the licensing authority, the importer may, if the benefit of input stage credit under rule 56A or rule 57A of the Central Excise Rules, 1944, has not been availed in respect of capital goods manufactured, transfer the imported materials to any other person. 2. Where benefit of this notification is sought by a person other than the licencee, such benefit shall be allowed against the licence only if it bears endorsement of transferability by the licensing authority : Provided that no such endorsement of transferability shall be made by the licensing authority - (a) unless the obligations against the licence have been discharged, sale proceeds realised, and the bond executed by the importer in terms of condition (3) redeemed; (b) where benefit of input stage credit under rule 56A or rule 57A of Central Excise Rules, 1944 has been obtained. Explanation. - In this notification - (i) "licensing authority" means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act; (ii) "materials" means - (a) raw materials, components, intermediates, consumables, and parts required for manufacture of capital goods; (b) spares, including mandatory spares, within a value limit of 5% of the value of the licence, which are required to be supplied along with the capital goods so manufactured; and (c) packing material required for the packing of capital goods to be supplied.