Circular No. 62/96-Cus.
dated 11/12/96
F.No. 305/32/96-FTT
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject: Enlarging scope of notification No. 13/81-Cus. dated 9.2.1981 and No. 138/91-Cus. dated 22.10.1991.

Your attention is invited to Notifications No. 13/81-Cus. dated 9.2.1981 and 138/91-Cus. dated 22.10.1991, which allows duty free import of capital goods, raw materials etc. to software development units for exports. These units could be 100% EOUs or and be situated in Software Technology Complex. Notification No. 88/96-Cus. and 89/96-Cus. both dated 19th Nov., 1996 have been issued to further amend notification No. 13/91 respectively to include data entry, data conversion, data processing, data analysis and control and data management to be eligible activities in addition to the activity of software development for the purpose of duty free import of capital goods, raw materials, consumable etc.

2. It has been brought to the notice of the Board that some units, who have imported capital goods, raw materials etc. under notification No. 13/81-Cus. or 138/91-Cus. have not utilised the same for the Development of Software alone but have inter alia used for the activities of data management prior to this amendment 19/11/96. Thus there was violation of condition of Notification No. 13/81-Cus & 138/91-Cus. In such cases duty on capital goods, raw materials, etc. becomes recoverable from the said units for imports prior to 19/11/96.

3. You are requested to inform the practice adopted for clearance of such goods through your commissionerate collect and send the names of such units the assessable value of goods imported by them, duty involved, year wise, up to the date of Notification so that an exemption notification under section 28A of Customs Act 62 can be issued.

4. Commissioner of Central excise may kindly have the units under their charge surveyed and send the information wherever the units have engaged in these activities prior to issue of the notification. Kindly send the information urgently. If there is no such unit a nil report may also be sent.

(O.P. Khanduja)
senior Technical Officer (FTT)

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