Exemption to Goods supplied to UN/International Organisations or Projects - 108/95 - Central Excise - Tariff

Superseded vide Not. 10/2017 - Dated 30-6-2017

Exemption to Goods supplied to UN/International Organisations or Projects

Notification No. 108/95-CE, Dated 28-8-95

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt 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 all goods falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said goods) when supplied to the United Nations or an international organisation for their official use or supplied to the projects financed by the said United Nations or an international organisation and approved by the Government of India, from the whole of-

(i) the duty of excise leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944); and

(ii) the additional duty of excise leviable thereon under sub-section (1) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957):

¹Provided that before clearance if the said goods, the manufacturer produces before the Assistant Commissioner of Central Excise having jurisdiction over his factory :-

(a) in case the said goods are intended for the official use by the United Nations or an international organisation, a certificate from the United Nations or that international organisation that the said goods are intended for such use;

²(b) in case of the said goods are-

(i) Supplied to an international organisation listed in the Annexure appended to this notification for use in a project that has been approved by the Government of India and financed (whether by a loan or a grant) by such an organisation, a certificate from such an organisation that the said goods are required for the execution of the said project and that the said project has duly been approved by the Government of India; or

(ii) Supplied to a project that has been approved by the Government of India and financed (whether by a loan or a grant) by an international organisation listed in the said annexure, a certificate from an officer not below the rank of Deputy Secretary to the Government of India, in the Ministry of finance (Department of Economic Affairs) that the said goods are required for the execution of the said project and that the said project has duly been approved by the government of India;

¹(c) in case the said goods are intended to be supplied to a project financed (whether by a loan or a grant) ³by the World Bank, the Asian Development Bank or any international organisation, other than those listed in the Annexure, and

(i) if the said project has been approved by the Government of India, a certificate from the executive head of the Project Implementing Authority and countersigned by an officer not below the rank of a Joint Secretary to the Government of India, in the concerned Line Ministry in the Government of India, that the said goods are required for the execution of the said project and that the said project has duly been approved by the Government of India, and

(ii) if the said project has been approved by the Government of India for implementation by the Government of a State or a Union Territory, a certificate from the executive head of the Project Implementing Authority and countersigned by the Principal Secretary or the Secretary (Finance), as the case may be, in the concerned State Government or the Union Territory, that the said goods are required for the execution of the said project, and that the said project has duly been approved by the Government of India for implementation by the concerned State Government.

⁸[2. Where the said goods are cleared prior to the 1st March, 2008, the manufacturer may -

     (a) transfer the said goods to a new project subject to the condition that the manufacturer produces before the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, a certificate from the officer concerned of the Central Government, State Government or Union territory Administration, as the case may be, that the said goods are no longer required for the said project and a declaration from the United Nations, the World Bank, the Asian Development Bank or any other international organization listed in the Annexure to the said notification that the said goods are required for the new project and the said project has duly been approved by the Government of India; or

     (b) pay duty of excise which would have been payable but for the exemption contained herein on the depreciated value of the said goods subject to the condition that the importer produces before the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, a certificate from the officer concerned of the Central Government, State Government or Union territory Administration, as the case may be, that the said goods are no longer required for the existing project. The depreciated value of the said goods shall be equal to the original value of the goods at the time of clearance reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of clearance of the said goods, namely:-

     (i) for each quarter in the first year at the rate of 4 per cent;

     (ii) for each quarter in the second year at the rate of 3 per cent;

     (iii) for each quarter in the third year at the rate of 2.5 per cent; and

     (iv) for each quarter in the fourth year and subsequent years at the rate of 2%,

subject to the maximum of 70%.]

¹Explanation 1.-For the purpose of this notification,-

(a) "international organisation" means an international organisation to which the Central Government has declared, in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), that the provisions of the Schedule to the said Act shall apply;

(b) "Line Ministry" means a Ministry in the Government of India, which has been so nominated with respect to a project, by the Government of India, in the Ministry of Finance (Department of Economic Affairs).'

⁷Explanation 2.-For the removal of doubts, it is hereby clarified that the benefit under this notification, in the case of goods supplied to the projects financed by the United Nations or an international organisation, is available when the goods brought into the project are not withdrawn by the supplier or contractor and the expression "goods are required for the execution of the project" shall be construed accordingly.'

⁴ANNEXURE

1. United Nations Development Programme,

2. United Nations International Children's' Fund,

3. Food and Agricultural Organisation,

4. International Labour Organisation,

5. World health Organisation,

6. United Nations Population Fund.

⁵7. United Nations World Food Programme

⁶8. United Nations Industrial Development Organisation.

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Notes :

1. Has been substituted vide Notification No. 4/1999 dated 11/2/1999 Explanation has been numbered as Explanation 1 vide notification no. 13/2008 CE dated 1/3/2008

2. Has been substituted vide Notification No. 40/1999 dated 2/11/1999

3. For the words by the world bank, the Asian development Bank or any other international organisation. The words by the World Bank, the Asian Development Bank or any international organisation, other than those listed in the Annexure has been substituted vide Notification No. 40/1999 dated 2/11/1999

4. Annexure has been inserted vide Notification No. 40/1999 dated 2/11/1999

5. Has been inserted vide Notification No. 36/2001 dated 6/7/2001

6. Has been inserted vide Notification No. 50/2001 dated 12/10/2001

7   Explanation 2 has been inserted vide notification no. 13/2008 CE dated 1/3/2008

8. Inserted vide Notification No. 11/2014-Central Excise dated 11th July, 2014