10-11-1994

Notification No. 136/1994-Central Excise

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 excisable goods specified in the Annexure I to this notification (hereinafter referred to as the said goods) when brought in connection with the production or manufacture or packaging of articles specified in Annexure II to this notification, as the case may be, into a hundred per cent export oriented undertaking 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), subject to the following conditions/ namely :-

(a) the undertaking is approved by the Board of Approval for hundred per cent export oriented undertaking appointed by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules made under that Act (hereinafter referred to as the Board);

(b) the said goods are brought directly to the undertaking from the factory of production or from the warehouse and are used in connection with the production or manufacture or packaging of goods meant solely for export;

(ba) such undertaking executes a bond in such form and for such sum as may be prescribed by the Assistant Commissioner of Customs or Central Excise to fulfil the export obligation and comply with the conditions stipulated in this notification and the Export and Import Policy and binding itself to pay on demand an amount equal to the duty leviable on the goods and interest at the rate of fifteen per cent per annum on the said goods from the date of duty free procurement of the goods till the 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 to have been installed or otherwise used within the unit 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 may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow;

(ii) in the case of goods other than capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Central Excise to have been used in connection with the production or packaging of goods for export out of India or cleared for home consumption within a period of one year from the date of procurement thereof or within such extended period as the Assistant 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 the case of –

(a) good as produced or packaged, such goods have not been exported out of India, and

(b) unused goods (including containers and packaging materials suitable for repeated use) as have not been exported or cleared for home consumption, within a period of one year from the date of procurement of such goods or within such extended period as the Assistant Commissioner of Customs or Central Excise may, on being satisfied that there is sufficient cause for not using as above, allow;

(iv) in the case of raw materials, components, spares and consumables (other than capital goods) procured duty free, the undertaking fails to achieve Net Foreign Exchange Earning as a Percentage of Exports (NFEP) and Export Performance (EP) as specified in Appendix-I of the Export and Import Policy, within one year of procurement of such goods or within such extended period not exceeding one year as the Assistant 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 for achievement of Net Foreign Exchange as a Percentage of Exports (NFEP) or Export Performance (EP) for further period, not exceeding five years, from the date of procurement;

Explanation.- For the purposes of this notification “Export and Import Policy” means the Export and Import Policy, 1st April, 2002 – 31st March, 2007, published by the Government of India in the Ministry of Commerce & Industry vide notification No.1/2002-07, dated 31st March, 2002, as amended from time to time.

(c) such undertaking exports out of India hundred per cent or such other percentage as may be fixed by the Board, of articles manufactured wholly or partly from the said goods for the period stipulated by the Board or such extended period as may be specified by the Board;

(d) on clearance of the articles produced or manufactured and allowed to be sold in India, such undertaking shall pay duty of excise leviable on such articles in terms of section 3 of the said Central Excise Act;

Provided that where such articles are not excisable, excise duty equal in amount to that leviable on the inputs obtained under this notification and used for the purpose of manufacture of such articles, which would have been paid but for the exemption under this notification, shall be payable at the time of clearance of such articles;

(e)  the manufacturer of the said goods follows the procedure contained in rules 11 and 20 of the Central Excise Rules, 2002

(f) the undertaking follows the procedure contained in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, with the modification that a certificate in Form CT-3 annexed to this notification as Annexure-III shall be used by the Central Excise officer in charge of the user industry in place of an application in the form at Annexure-I provided in the said Rules

(g) on the clearance of capital goods or office equipments, as may be allowed by the Board, such undertaking shall pay excise duty on depreciated value and at the rate in force at the time of payment of such excise duty.

Provided that in the case of capital goods, the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise may, subject to such conditions as he may specify, permit destruction of such capital goods, without payment of duty, inside the unit, or outside the said unit, where it is not possible or permissible to destroy the same within the said unit, in the presence of Customs or Central! Excise Officer;

(h) on the clearance of goods other than those specified in condition (g) above, as may be allowed by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise such undertaking shall pay excise duty on the full value at the time of their clearance from the factory of manufacture and at rates in force on the date of payment of such excise duty.

(i) The Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise, as the case may be, subject to such conditions as he may specify in this behalf, permit destruction of rejects and wastes without payment of duty within the unit, or outside the said unit, where it is not possible or permissible to destroy the same within the said unit, in the presence of Customs or Central Excise officer.

(j) Notwithstanding anything contained in this notification, the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner, of Customs, or Central excise, as the case may be, may permit the goods specified against Item number 4 and Item numbers 14 to 21 of the Annexure-I to be taken out to the fields or farms of contract farmers of the unit for production or in connection therewith; and to bring back the produce to the unit for exports, in accordance with provisions of Export and Import Policy and Handbook of Procedures Volume I and subject to the following conditions:

(i) the unit shall produce an agreement between the unit and contract farmer(s) to the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of, Customs or Central Excise, as the case may be;

(ii) the fields/ farms of the contract farmers shall be located within the jurisdiction of the same Commissioner of Customs or Central Excise, as the case may be, as that of the unit;

(iii) in case of units, which has been in existence for at least two years and engaged in export of agriculture or horticulture products, supply of inputs and other equipment to the fields/ farms of the contract farmers shall be allowed to the unit on furnishing a bank guarantee equal to the 50 per cent. of the duty forgone on the goods so transferred to the fields or farms of the contract farmers;

(iv) in case of units other than those mentioned in the clause (iii) above, the unit shall be required to furnish a bank guarantee equal to the total duty forgone on the goods so transferred to the fields or farms of contract farmers;

(v) prior to import of the goods, the unit shall apply to the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise, as the case may be, giving the details, such as, number of contact farmers and location of their farms, measurement of the farms or fields under contact farming, input-output norms of production as fixed by Directorate General of Foreign Trade and their projected requirements and after examination of the such projected requirement, the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise, as the case may be, would give permission for the import or procurement of the same on annual basis.

(vi) the unit shall be required to have a premise(s) duly bonded under section 58 of the said Customs Act, for storage, of imported or domestically procured inputs and capital equipment and, of final products manufactured or produced therefrom;

(vii) in case of failure of the unit to bring back the agriculture or horticulture produce so produced in the fields/ farms of contract farmers to the unit, as per the norms notified by the Directorate General of Foreign Trade, within the same season or such extended period as may be permitted by the Commissioner of Customs or Central Excise, as the case may be, due to any reason including natural calamity or loss of crop, the unit shall be required to pay the duty equal to the duty forgone on the inputs so taken out to the fields or farms of the contract farmers;

(viii) in respect of equipment specified at Item numbers 14 to 20 and transferred to the fields or farms of the contract farmers, at any point of time as may be decided by the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of, Customs or Central Excise, as the case may be, the unit shall be required to account for the goods so transferred to the fields or farms of the contact farmers.

(ix) in case of non-accountal of goods so transferred or use of the goods in farms or fields other than those declared to the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise, as the case may be, the unit shall pay duty forgone on such un-accounted goods along with the interest at the rate of twenty percent. per annum within 10 days of receipt of demand notice, and in case of failure to pay the same, the Assistant Commissioner of, Customs or Central Excise or Deputy Commissioner of, Customs or Central Excise, as the case may be, may en-cash the bank guarantee and disallow the duty free imports/ procurement under the notification;”;

Explanation. – The depreciation shall be allowed for the period commencing from the date of commercial production by the Undertaking or the date of receipt of the goods specified in the condition (g) above, in the Undertaking, whichever is later, till the date of payment of duty.

ANNEXURE I

1.    Green House equipment, accessories, heated rooting tables, propagation trays, seeding machines.

2.    Growing media such as Peat Moss (including peat litres) (whether or not agglomerated), Pearlite/Vermiculate, Rockwool, Cocoa pet, Hydrocom, Foam based medium and other cultivation medium.

3.    Office equipments, spares and consumables thereof.

4.    Fertilizers and chemicals for pre and post harvest treatments such as micro nutrients, plant and growth regulators and other organic and inorganic substances used for plant nutrition, insecticides, fungicides, weedicides, herbicides, and the like.

5.    Animal feed such as cattle feed and poultry feed.

6.    Veterinary medicines including vaccines.

7.    Packaging materials including machinery and equipment for packaging.

8.    Cooling equipment for cold room, storage room, pro-cooling chambers and its accessories.

9.    Sorting equipment. Grading equipment. Packing equipment and temperature control or humidity control equipment.

10.    Power generating sets.

11.    Refrigeration and air-conditioning equipment for fitment on transport vehicles.

12.    Spare parts for the maintenance of goods mentioned at item Nos. 8 to 11 above.

13.    High Speed Diesel for power generating sets as recommended by the Board of Approvals.

14.    Filters

15. Dripliers, Driplines and Drip Fittings

16. Micro Sprinklers and Misters

17. Agriculture Sprinklers

18. Fertilizer Tanks

19. Valves

20.Fertilizer Pumps and Chemical Injections

21. Seeds

ANNEXURE II

  1.    Live animals.

2.    Bird”s eggs (fresh) in shells of Heading 04.04.

3.    Live trees and other plants; bulbs, roots and the like, cut flowers and ornamental foliage.

 4.    Fresh vegetables; whole uncut sun dried vegetables; Fresh and uncut/sun dried roots and tubers of Chapter 7.

 5.    Fresh and uncut/sun dried edible fruits and nuts of Chapter 8.

6.    Fresh or sun dried plants and parts of such plants.

7.    Silk worm cocoons and raw silk.

Note : The Chapters and Headings referred to in the Annexure are those of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).

ANNEXURE III

No…………………….                                                                                                                                 Date……………….

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 bona fide licensee holding licence No………………… valid upto……………………………….

(2)    That he/they has/have executed a bond in Form B-16 (General Surety/General Security).

No……………….date…………….for Rs………..with the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise…………….and as such maybe permitted to remove……………(quantity) of ……………..(excisable goods) from
the unit at……………… to their undertaking…………………….at…………………………………..

(3)    That the specimen signatures of his/their authorised agent namely Shri…………………………are furnished here below duly attested;

Specimen Signatures of the
owner or his authorised agent

Sd/-
Attested

Central Excise Officer-in-charge of the 100% Export Oriented Undertaking.

Notification No. 136/94-C.E., dated 10-11-1994 as amended by Notifications No. 112/95-C.E., dated 14-9-1995; No. 113/95-C.E., dated 20-10-1995; No. 11/97-C.E., dated 1-3-1997; No. 25/99-C.E., dated 19-5-1999 , No. 2/2000-C.E., dated 28-1-2000, No. 40/2000-C.E. dated 22-5-2000 , No. 29/2001-C.E., dated 18-5-2001 and No. 35/2002 dated 24-6-2002

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