Excisable goods brought to granite quarry in 100% EOU

New Delhi, the 8^th May 2000

NOTIFICATION No. 37/2000-C.E

G.S.R. 414 (E). -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 gods 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 Pormotion, 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 (1of 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 a 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 fulfil 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 20% per annum on the said duty from the date of duty free procurement of the said goods till 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 form 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, sa 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 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.

(6) The manufacture of the said goods follows the procedure contained in rules 156A and A56B of the Central Excise Rules, 1944 (hereinafter referred to as the said Rules) as modified by rule 173N of the said Rules.

(7) The unit follows the procedure contained in the Chapter X of the Central Excise Rules, 1944 with the modification   that the certificate in form CT-3, as specified in Annexure II to this notification shall be used by the Customs or Central Excise Officer-in-charge of the unit in place of the certificate in from CT-2 provided in the said Central Excise 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 suty for repairs and return thereof;

(c) the unit to export the said goods.

(d) Destruction of absolute 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 or 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 of Central Excise.

(11) The accounts of the said goods used at the quarrying site shall be kept in the site 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.

Note : For the purpose of this notification Export and Import Policy means the Export and Import Ploicy, 1997-2002 published by the Government of India under the Ministry of Commerce, notification number 1 (RE-99)/1997-2002, dated 31^st march. 2000, 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

1.     Santa Cruz Electronics Export Processing Zone

2.     Kandla Free Trade Zone

3.     Falta Export processing Zone

4.     Madras Export processing Zone

5.     Noida Export Processing Zone

6.     Cochin Export processing Zone

7.     Visakhapatnam Export processing Zone

8.     Surat Export processing Zone

9.     Kay, foam Export processing Zone, Kandivili, Mumbai

Note: the Zone shall comprise of places beanng survey numbers and enclosed by boundaries may be specified by the jurisdictional Commissioner of Customs in a Public/Trade Notice, issued in this behalf.

ANNEXURE- II

FORM C.T.3

Certificate for removal of excisable goods under bond

This is to certify that :

1. Mr./Messrs. ________________(Name and address) is/are bonafide licensee holding licence No. ____________ valid
   upto ________________.
2. That he/they has/have executed a bond Form B-17 (General surety/General Security).

No.____________ date ____________ for Rs.___________ with the Assistant Commissioner of Central Excise or Deputy Commissioner of Central_____________ and as such may be permitted to remove (quantity) of _____________ (excisable goods) from the unit at___________ to their undertaking ___________at ______________

1. that the specimen signatures of his/their authorized agent, namely, Shri______________ are furnished here below duly attested;