EOUs/ EPZ Units - Excise Duty Exemption of Goods for Granite Quarries
(This Notification has been Rescind vide Notification No. 22/2003-CE, Dt. 31/03/2003)
NOTIFICATION NO. 37/2000-CE
DATED 08/05/2000
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts excisable goods specified in the Table below (hereinafter referred to as the said goods), when brought for use in a granite quarry for the purpose of quarrying of granite (hereinafter referred to as the said purpose), by hundred percent export oriented units approved by the Board of Approvals for hundred percent export oriented units, appointed by a notification of Government of India in the Ministry of Industry (Department of Industrial Policy and Promotion), or the Development Commissioner concerned, as the case may be, (hereinafter referred to as the said EOU Board) or by units within an Export Processing Zone or a Free Trade Zone specified in Annexure-I to this notification (hereinafter referred to as the Zone), approved by the Board of Approvals for Export Processing Zone appointed by a notification of Government of India in the Ministry of Industry (Department of Industrial Policy and Promotion) or the Development Commissioner concerned, as the case may be, for the said purpose (hereinafter referred to the said EPZ Board), from the whole of duty of excise leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944) and the additional duty of excise leviable thereon under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), subject to the following conditions, namely:-
(1) The unit has been granted necessary approval for procurement of said goods for the said purpose.
(2) The said goods are brought directly to the unit from the factory of manufacture or from the warehouse.
(3) The said goods are used by the unit for the purpose of quarrying of granite meant for further processing or manufacture or production of articles of granite for export by its own export oriented unit or its unit in the Zone.
(4) The unit executes a bond with the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise in the prescribed form and for such sum as may be specified by the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise, binding itself:-
(a) to use the said goods only for its own export oriented unit or its unit in the zone, as the case may be ;
(b) to fulfill the export obligation and Net Foreign Exchange Earning as a Percentage of Export and comply with conditions stipulated in this notification and the Export and Import Policy;
(c) to pay on demand an amount equal to the duty as leviable on the goods and interest at the rate of 1[fifteen per cent.] per annum on the said duty from the date of duty free procurement of the said goods till the date of payment of such duty, if-
(i) in the case of capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise to have been installed or otherwise used within a period of one year from the date of procurement thereof or within such extended period not exceeding five years as the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow;
(ii) in case of goods other than capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise to have been used in connection with the quarrying of granite or re-exported within the period of one year from the date of procurement thereof or within such extended period as the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow;
(iii) in case of components, spares and consumables procured duty free, the unit fails to achieve the Net Foreign Exchange Earning as a Percentage of Exports (NFEP) and Export Performance (EP) as specified in Appendix-1, of the Export and Import Policy within one year of procurement of such goods or within such extended period, not exceeding one year, as the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise may on being satisfied that there is sufficient cause, allow;
Provided that the Commissioner of Customs or Central Excise may extend the period of achievement of Net Foreign Exchange Earnings as a percentage of Export (NFEP) or Export Performance (EP) for further period not exceeding five years from the date of procurement.
(5) The unit maintains a proper account of receipt, consumption and utilisation of the said goods and of granite so quarried and transferred to his processing unit or to any other export oriented unit or units in the Zone, and shall submit such accounts periodically to the Development Commissioner of the zone and to the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise, in such form and in such manner as may be laid down by the Development Commissioner.
2[(6) the manufacturer of the said goods follows the procedures contained in rules 11 and 20 of the Central Excise Rules, 2002;
(7) the manufacturer of the said goods follows the procedure contained in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, with the modification that a certificate in Form CT-3 annexed to this notification as Annexure-III shall be used by the Central Excise officer in charge of the user industry in place of an application in the Form at Annexure-I provided in the said rules]
(8) The quarries are in the name of the unit either on 'lease-basis' or on 'ownership basis'. The location and area of quarries or any subsequent change in location of quarry or quarries at a later stage, shall be intimated by the unit to the Development Commissioner and the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise.
(9) The Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise may, subject to such conditions and limitations as he may specify and subject to the provisions of the Export and Import Policy, allow -
(a) the unit to supply granite so quarried to other Export Oriented Units or units in the Zone without payment of duty;
(b) the said goods to be taken out temporarily without payment of duty for repairs and return thereof;
(c) the unit to export the said goods;
(d) destruction of obsolete capital goods without payment of duty, if such goods are destroyed in the presence of the Customs or Central Excise Officer.
(10) The said goods shall not be transferred or shifted to any other site of quarry owned or taken on lease by the unit without permission of the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise.
(11) The accounts of the said goods used at the quarrying site shall be kept in the site in a properly constructed office to enable the verification of the same as and when required.
(12) The goods so quarried shall be removed from the quarry site only for supply to unit's own processing unit in the Zone or Export-Oriented Unit or for supply to an other hundred percent Export-Oriented Unit or the units in the Zone engaged in processing or production or manufacture of articles of granite and export thereof and shall not be allowed to be exported as such or to be cleared in Domestic Tariff Area.
2. Without prejudice to any other provision contained in this notification, the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise may, subject to such conditions and limitations as he may deem fit to impose under the circumstances of the case for the proper safeguard of the revenue interest and also subject to such permission of the Development Commissioner, where it is exclusively required under the Export and Import Policy, allow the unit to clear the said goods to any place in India in accordance with the Export and Import policy-
(a) such clearance of capital goods may be allowed on payment of an amount equal to the excise duty leviable on such goods on the depreciated value thereof and at the rate in force on the date of payment of such duty;
(b) such clearance of goods other than capital goods, may be allowed on payment of excise duty leviable on such goods on the full value at the time of their clearance from the factory of manufacture and at the rates in force on the date of payment of such excise duty.
Explanation.- The depreciation in respect of goods covered by clause (a) shall be allowed for the period from the date of their use in a quarry to the date of payment of duty.
F.No.305/33/2000-FTT
3[Note:- For the purposes of this notification, "Export and Import Policy" means the Export and Import Policy, 2002-2007, published by the Government of India in the Ministry of Commerce and Industry vide notification No. 1/2002-07, dated the 31st March, 2007, as amended from time to time,]
TABLE
1. Hydraulic Excavators
2. Pneumatic Compressors
3. Jack Hammers
4. Hydraulic Drilling Machines
5. Line Drillers
6. Front End Loaders
7. Pneumatic Grinders
8. Diamond Wire Saws
9. Dressing Machine
10. Core Drilling Machine
11. Jet Burners
12. Cranes
13. Derricks
14. Tippers and Dumpers
15. Welding Machine
16. Generating sets
17. Steel Chains and Steel Ropes
18. D-Shackles
19. Diamond Wires
20. Diamond Segments
21. Tungsten Carbon Drill Rods
22. Steel Feathers & Wedges
23. Burner Nozzle
24. Welding Rods
25. Hydraulic Oil and Lubricants
26. Explosives
27. Chisels, Hammers, Chain Pulley Blocks
28. Steel Pillow Kits
29. Dust Collector
30. Consumables and tools
ANNEXURE-I
Name of the Zone
4[1. Omitted.
2. Omitted.]
3. Falta Export processing Zone
4. Madras export Processing Zone
5. Noida Export Processing Zone
[6. Omitted.]
7. Vishakhapatnam Export Processing Zone
[8. Omitted.]
9. Kay foam Export processing Zone, Kandivili, Mumbai.
Note: The Zone shall comprise off places bearing survey numbers and enclosed by boundaries as may be specified by the jurisdictional Commissioner of Customs in a Public / Trade Notice, issued in this behalf.
***************************
Notes :
1. For the figures "20%", the words "fifteen per cent." has been substituted vide Notification No. 35/2002 dated 24/6/2002
2. Has been substituted vide Notification No. 35/2002 dated 24/6/2002
3. Has been substituted vide Notification No. 35/2002 dated 24/6/2002
4. In Annexure I, serial Nos. 1, 2, 6, and 8 has been omitted vide Notification No. 52/2001 dated 6/11/2001
9911796707
