Notification No. 24/1998-Central Excise
Marine freight containers cleared from 100% EOU into DTA for exports – Exemption :Online GST Certification Course by TaxGuru & MSME- Click here to Join
n exercise of the powers conferred by sub-section (i) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts marine freight containers, falling under Chapter 86 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured in hundred per cent export oriented unit or a unit in an Export Processing Zone or a Free Trade Zone from the whole of the duty of excise leviable thereon under Section 3 of the Central Excise Act, 1944 (1 of 1944), when sold in India for export :
Provided the unit and buyer of the marine freight containers executers a bond in such form and for such sum as may be specified by the Assistant Commissioner of Customs in charge of the hundred per cent export oriented unit or Export Processing Zone or Free Trade Zone, binding themselves to export the said containers within six months from the date of clearance from the hundred per cent export oriented unit or Export Processing Zone or Free Trade Zone and to furnish documentary evidence thereof to the satisfaction of Assistant Commissioner of Customs and to pay the duty leviable thereon in the event of the failure of the said buyer to export the said marine freight containers :
Provided further that the aforesaid period of six months may, on sufficient cause being shown, be extended by the Assistant Commissioner of Customs for a further period not exceeding six months.
To create a level playing field for the domestic manufacturers of marine freight containers the notification exempts the marine freight containers from payment of duty when cleared from 100% EOU into DTA for exports.