Circular No.53 /2001-Cus
12th October, 2001

F.No.305/85/2001-FTT
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)

Sub : Sharing of Diesel Generating Sets/Captive Power Plants, Central Air-Conditioning Equipments, Networking Equipments etc. of a STP unit by other units of the same owner under Software Technology Park Scheme – Reg.

 I am directed to invite your attention to the above-mentioned subject and to say that a request has been received from the trade for allowing the units operating under STP scheme to share certain systems, such as, Diesel Generating Sets/Captive Power Plants, Central Air-conditioning Equipments and Networking Equipments etc. with other units for the purpose of development of software and export thereof on the ground that this would reduce the transaction cost of different STP units owned by the same owner.

2. The matter has been considered by the Board. It has been decided that the items viz. diesel generating sets/captive power plants, central air-conditioning equipments, uninterrupted power supply system, networking equipments, data transfer protocol equipments, EPABX, Fax, photocopier equipments and security system imported/procured by a unit under STP scheme may be allowed to be utilised by other STP units belonging to the same owner. This facility is, in fact, limited to STP units owned by the same owner and are located in the same compound or nearby/adjacent premises. Further, the equipments/systems etc. would not be allowed to be taken out of the bonded premises of the unit, which has imported or procured the same duty free for the purpose of export. In order to implement this, notification Nos. 138/91-Cus, dated 22nd October, 1991, 140/91-Cus, dated 22nd October, 1991 and 1/95-CE dated 4th January, 1995 have been suitably amended vide notification Nos. 106/2001-Cus & 49/2001-CE both dated 10-10-2001 (a copy each of the notification is enclosed).

3. Under the STP scheme, the Letter of Permission is issued unit-wise; therefore, the export obligation and NFEP in respect of the said goods shall be discharged by the unit, which has imported/ procured the goods duty free. For availing of the facility, the unit desiring to allow utilisation of its goods by other STP units as specified in the notification for the purpose, may approach the jurisdictional Commissioner of Central Excise or Customs, as the case may be, with an application. The Commissioner of Customs and Central Excise may after suitable verification of facts, give the necessary permission to the unit.

4. The items viz. Networking Equipments, Data Transfer Protocol Equipments and Central Air-Conditioning Equipments, though do not find any specific mention in notification Nos.138/91-Cus, dated 22nd October, 1991, 140/91-Cus, dated 22nd October, 1991 and 1/95-CE dated 4th January, 1995 governing duty free import/procurement of goods by units under STP scheme are nevertheless allowed to be imported or procured without payment of duty as capital goods. However, for the purpose of clarity, notification Nos.138/91-Cus, dated 22ndOctober, 1991, 140/91-Cus, dated 22nd October, 1991 and 1/95-CE dated 4th January, 1995 have been amended so as to mention these items specifically in the eligible list of items allowed to be imported/procured duty free under the notifications ibid.

5. Wide publicity may be given by issue of a Public Notice in this regard. Difficulties, if any, faced in the implementation of the above instructions, may be brought to the notice of the Board at an early date.

Kindly acknowledge receipt of this Circular.

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