4-1-1995
Notification No. 2/95-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), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all excisable goods (hereinafter referred to as the said goods) specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and produced or manufactured in a hundred per cent export oriented undertaking or a free trade zone or an Electronic Hardware Technology Park (EHTP) unit or a Software Technology Parks (STP) unit and allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a), (b), (d) and (h) of paragraph 6.8 of the Export and Import Policy, from so much of the duty of excise leviable thereon under section 3 of the said Central Excise Act as is in excess of the amount equivalent to fifty per cent. Of the aggregate of the duties of customs, which would be leviable under the Customs Act, 1962 (52 of 1962) or under any other law for the time being in force, read with any notification for the time being in force in respect of the duty so chargeable on the like goods produced or manufactured outside India if imported into India :
Illustration. – Assuming product X has the value Rs. 100 under section 14 of the Customs Act, 1962 and is chargeable to basic customs duty of 30% ad valorem, additional duty of 16% ad valorem and special additional duty of 4% ad valorem. The computation of duty required to be paid would be as follows:-
Basic customs duty
=Rs. 30/-
Value for the purpose of calculation of additional duty
=Rs. 100/- + Rs. 30/-
=Rs. 130/-
Additional duty
=16% of Rs. 130/-
= Rs. 20.80
Value for the purpose of special additional duty
=Rs. 100/- + Rs. 30 + Rs. 20.80
= Rs. 150.80
Special additional duty
= 4% of Rs. 150.80
= Rs. 6.032
Total duty payable but for this exemption
=Rs. 30 + Rs. 20.80 +Rs. 6.032
= Rs. 56.832
50% of the aggregate of the duties of customs
=50% of Rs. 56.832
=Rs. 28.416
Duty required to be paid in accordance with this notification is Rs. 28.416, provided it is not less than the duty of excise leviable on like goods produced or manufactured outside the hundred per cent. export-oriented undertaking, etc.”.
Provided that the amount of duty payable in accordance with this notification in respect of the said goods shall not be less than the duty of excise leviable on the like goods produced or manufactured outside the hundred per cent export-oriented undertaking or free trade zone or Electronic Hardware Technology Park (EHTP) unit or Software Technology Parks (STP) unit which is specified in the said Schedule, read with any other relevant notification issued under sub-rule (1) of rule 8 of the Central Excise Rules, 1944, or sub-section (1) of section 5A of the said Central Excise Act:
Provided further that nothing contained in the above proviso shall apply to the goods which are chargeable to nil rate of duty leviable under section 12 of the Customs Act read with any other notification for the time being in force issued under sub-section (1) of section 25 of the said Customs Act:
Provided also that the exemption under this notification shall not be availed until the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise is satisfied that the said goods, including software, rejects, scrap, waste or remnants, –
(a) being cleared for home consumption, other than scrap, waste or remnants are similar to the goods which are exported or expected to be exported from the units during specified period of such clearances in terms of Export and Import Policy,
(b) the total value of such goods being cleared under paragraph 6.8 of the Export and Import Policy, for home consumption from the unit does not exceed 50% of the free on board value of exports made during the year (starting from 1st April of the year and ending with 31st March of next year) by the said unit; and
(c) the balance of the production of the goods which are similar to such goods under clearance for home consumption, is exported out of India or disposed of in terms of paragraph 6.9 of the Export and Import Policy.
Provided also that the clearance of goods for home consumption under paragraphs 6.8 (b) and 6.8 (h) shall be allowed only when the unit has fulfilled the minimum Net Foreign Exchange Earning as a Percentage of Exports (NFEP) prescribed in Appendix-I of the Export and Import Policy:
Provided also that the clearance of goods for home consumption under paragraph 6.8(a) in excess of 5% of Free on Board value of exports made by the said unit during the year (starting from 1st April of the year and ending with 31st March of the next year) shall be allowed only when the unit has fulfilled the minimum Net Foreign Exchange Earning as a Percentage of Exports (NFEP) prescribed in Appendix-I of the said Policy.
Explanation. – For the purpose of this notification, the expression, –
“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 and Industry notification No.1/2002-07, dated 31st March, 2002, as amended from time to time.’
“Electronic Hardware Technology Park (EHTP) unit” means a unit established under and in accordance with Electronic Hardware Technology Park (EHTP) Scheme notified by the notification of the Government of India in the Ministry of Commerce No. 5 (RE-95) 92-97, dated 30th April, 1995 and approved by an mter-Ministerial Standing Committee appointed by the notification of the Government of India in the Ministry of Industry {Department of Industrial Development) No. S.O. 117(E), dated the 22nd February, 1993;
(3) “Software Technology Parks (STP) unit” means a unit established under and in accordance with Software Technology Parks (STP) Scheme notified by the notification of the Government of India in the Ministry of Commerce No. 4/(RE-95)/92-95, dated 30th April, 1995 and approved by an mter-Ministerial Standing Committee appointed by the notification of the Government of India in the Ministry of Industry (Department of Industrial Development) No. S.O. 117(E), dated the 22nd February, 1993.
Notification No. 2/95-C.E., dated 4-1-1995 as amended by Notifications No. 76/95-C.E., dated 1-4-1995; No. 100/95-C.E., dated 2-6-1995; No. 7/96-C.E., dated 1-7-1996; No. 21/97-C.E., dated 11-4-1997; No. 23/97-C.E., dated 29-4-1997; No. 4/98-C.E., dated 24-4-2998; No. 26/98-C.E., dated 24-8-1998; No. 29/98-C.E., dated 8-9-1998; No. 25/99-C.E., dated 19-5-1999; No. 38/99-C.E., dated 16-9-1999; No. 39/99-C.E., dated 16-9-1999; No. 39/99-C.E., dated 16-9-1999, No. 11/2000-C.E., dated 1-3-2000, No. 29/2001-C.E., dated 18-5-2001 , No. 11/2002-C.E., dated 1-3-2002.and No.35/2002 dated 24-6-2002
