Exemption to capital goods imported under Para 197 of the Import and Export Policy - 1990-93 (This notification Superseded/Rescinded by notification no. 99/94 dt. 1.3.94) - 169/1990 - Customs -Tariff

Exemption to capital goods imported under Para 197 of the Import and Export Policy - 1990-93 This notification Superseded/Rescinded by notification no. 99/94 dt. 1.3.94 (As amended by Section 115 if the Finance Act, 2001, read with Serial No. 1 of the Eighth Schedule thereto and Section 126(1) of the Finance Act, 2003, read with Serial No. 1 of the Second Schedule thereto.) 3 rd May, 1990 Notification No. 169/90-Customs 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 capital goods, when imported into India by an importer under and in accordance with paragraph 197 of the Import and Export Policy, from - (a) so much of that portion of the duty or customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as is in excess of the amount calculated at the rate of 25% ad valorem; and (b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (i) the importer shall produce to the Assistant Collector of Customs at the time of the importation a certificate for having executed a bond accompanied by bank guarantee for full amount of duty leviable on such 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 importer at the time of clearance of the said capital goods shall make a declaration before the Assistant Collector of Customs, in such form as he may specify, binding himself to pay on demand an amount equal to the duty leviable on such capital goods but for the exemption contained herein, in respect of which the conditions specified in the said paragraph 197 have not been complied with. (iii) where the licensing authority grants an extension of the period for fulfilment of export obligation in terms of, and subject to satisfaction of such conditions as may be specified in a Public Notice of the Government of India in the Ministry of Commerce in this regard, the said period of fulfilment of export obligation may be extended, but shall in no case be extended beyond the 31 st March, 2002. This amendment shall be notwithstanding anything contained in any judgement, decree or order of any Court, Tribunal or other authority. Any action taken or anything done or purported to have taken or done under this notification shall be deemed to any always to have been for all purposes taken or done as if this notification as amended has been in force at all material time. (iv) where the Licensing Authority grants an extension of the period for fulfilment of export obligation in terms of, and subject to the satisfaction of such condition as may be specified in a Public Notice of the Government of India in the Ministry of Commerce and Industry in this regard and the licence-holder units are affected by the earthquake which took place in the State of Gujarat in the month of January, 2001, then, the said period of fulfilment of export obligation may, notwithstanding anything contained in condition (iii), be extended and be deemed to have been extended beyond the 31 st day of March, 2002, but shall in no case be extended beyond the 31 st day of March, 2004. This amendment shall be notwithstanding anything contained in any judgement, decree or order of any Court, Tribunal or other authority. Any action taken or anything done or purported to have taken or done under the said notification shall be deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if the notification as amended by this sub-section had been in force at all material times. For other provisions in this respect refer to section 126(1) of the Finance Act, 2003. Explanation : In this notification, - (i) "capital goods" means any plant, machinery, equipment or accessories required by an importer for manufacture of goods; (ii) "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); (iii) "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. 1-ITC (PN) 90-93 dated the 30th March, 1990, as amended from time to time.