Circular No.18/18/94-CX
dated 9/2/94
F. No. 151/41/93-CX.4

Government of India

Ministry of Finance

Department of Revenue, New Delhi

Subject : Central Excise – Benefit of Notification No. 73/90-CE dated 20.3.1990 – Rural Automatic Exchanges – Regarding

In terms of notifications No. 73/90-CE dated 20th March, 1990, Concessional rate of duty of 15% have been prescribed for Rural Automatic Exchanges (RAX) (upto 512 Ports) subject to the condition that the manufacturer produces at the time of clearance a certificate from an officer not below the rank of General Manager in the Department of Telecommunications of the Government of India that the goods in question (including the quantity and technical specifications) are required for the establishment of rural telecommunication netwrok by the Department of Telecommunications and will not be used for any other purpose.

2. It has been clarified by the Department of Telecommunications (copy enclosed) that RAX (512 ports) incldes, the Base Module and Line Module, the Input-Output Processor, Alarm Display Unit, Monitor, Software, Documentation, Over Voltage Protection Devices, Spares and Installation materials. They have clarified that these items manufactures by the manufactured and descirbed above constitute the Rural Automatic Exchanges (RAX) and has the essential character of complete goods, namely RAX (512 ports) covered by Sl. No. 1 of the notification No. 73/90-CE. Therefore, if the above goods are Manufactured and cleared together from the factories, they may be treated as RAX and given the benefit of the notitication, even though some other items, such as power plants, batteries, transmission equipment, main distribution frame, telephone cables and subscriber telephpne instruments are brought and supplied separately.

3. Main distribution frame will not get the benefit of this exmption since it is not a part of RAX. Any one of these items mentioned above, it cleared separately as a single item, cannot get the benefit of the notification.

4. All pending assessment may be finalised.

5. Lower field formations may be advised suitably and Trade may be informed accordingly.

(Arvind Singh)
Deputy Secretary to the Government of India

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