CUS CIR NO. 28/2004 DATE 06/04/2004

Extension of benefit of Notification No.51/96-Cus. dated 23.7.1996 on goods imported by Private Colleges - regarding.

I am directed to say that divergence of practice have been brought to the notice of the Board regarding the extension of benefit of Notification No.51/96-Cus., dated 23.7.1996 on goods imported by private colleges.

2. Notification No. 51/96-Cus., dated 23.7.96 allows levy of concessional rate of duty @5% on the import of scientific instruments, apparatus, equipment and spare parts when imported by public funded research institutions and non-commercial research institutions that are registered with the Department of Scientific and Industrial Research (DSIR), Ministry of Science & Technology. The said notification allows benefit of concessional rate of duty when the goods are imported either directly by or for delivery to the eligible categories of importers.

3. In the case under reference to the Board, benefit of Notification No.51/96-Cus. dated 23.7.1996 was claimed. However, the importing college itself was not registered with DSIR; the importer submitted copy of `Certificate of Registration' issued by DSIR to the University, with which the importer was affiliated. The concerned Customs Commissionerate denied the benefit of the said Notification on the ground that the condition of the notification stating that the importer has to produce registration with the DSIR was not fulfilled.

4. However, it is intimated that DSIR has issued a clarification dated 28.10.98 (copy enclosed), mentioning inter-alia, that -

(i) henceforth, the privately funded/managed colleges will not be given registration by DSIR and if any college holds such registration it ceases to be valid beyond 31.8.98,

(ii) as regards privately funded/managed colleges which are affiliated to Universities, it has been decided with the approval of Hon'ble Minister (HRD and S&T) that Universities to which these colleges are affiliated will issue essentiality certificates on case to case basis (for each item) to these colleges for equipment, spares, accessories, consumables exclusively required for a research purposes only---------.

5. Attention is also drawn to Board's Circular No. 27/2003-Cus, dated 2.4.2003 where it has been clarified that benefit of concessional rate of duty under the said notification (51/96-Cus.) has to be allowed even in those cases where imports are made by importers other than the institutions specified in column (2) against Sl. No. 1 of the Table, provided such imports are made for delivery to an institution specified in the notification.

6. In the instant case, the concerned university had issued essentiality certificate in respect of the equipment in question. Also, the university was entitled to import these equipments at concessional rate of duty either directly or indirectly for its use. Hence, it can be considered that, on the strength of the essentiality certificate issued by the eligible institution (the university), benefit could be extended, as the items were for use by the university (in the laboratory/premises of the affiliated college).

7. Therefore, it is hereby clarified that where a claim of benefit under Notification No. 51/96-Cus., dated 23.7.1996 is made by a privately funded College or educational institution, that is not a public funded research institution or non-commercial research institution, the benefit of notification can be considered on the basis of essentiality certificate issued by the University to which the said college or educational institution is affiliated, on case to case basis, provided that the said University falls under the eligible category of importers under the said Notification.

8. Field formations may finalise the pending assessments, if any, accordingly.

9. Please acknowledge receipt of this circular.

Sd/-
(H.K.Sharma)
STO (TU)

F. No. 525/15/2003-Cus. (TU)

Government of India Ministry of Science & Technology Department of Scientific & Industrial Research New Mehrauli Road, New Delhi-110016	Telegram : SCIENCTECH Telephone: 667373, 662135 (PABX) Telex: 73381, 73317, 73230 6863847, 6862418 Email : dsir@x400.nicgw.nic.in
No. TU/V/RC-CDE/96	Dated October 1998

To

The Vice Chanceller,

As your are aware the Govt. of India has been giving several fiscal incentives for scientific and industrial research. One such incentive is exemption from customs and central excise duty for equipment, accessories, spare parts and consumables needed for research purposes only, by the following organizations.

(a) Public funded research institution or a university or an Indian Institute of Technology or Indian institute of Science, Bangalore or a Regional Engineering College other than a hospital.

(b) Non-commercial research institutions other than a hospital.

2. The customs and excise duty exemption have been extended vide notification nos. 51/96-Customs and 10/97-Central Excise respectively, a copy each of which is enclosed[1] for your reference .

3. While DSIR has been issuing certificates of essentiality of the equipment, spares accessories, consumables needed for research by non-commercial research institutions on case to case basis, the Public funded research institution or a university or an Indian institute of Technology or Indian Institute of Science, Bangalore or a Regional Engineering College listed at (a) above have been given registration by DSIR, which empowers the head of Institutions to issue essentiality certificate to obtain Customs Duty/Excise Duty exemption on equipment, spare, accessories, consumable needed for research purposes only.

4. The notification has defined the term “university” for the purpose of customs & excise exemption of equipment, spare, accessories, consumable needed for research purposes. This definition reads as follows:

University means a university established or incorporated by or under a Central, State or Provincial Act and include–

(i) an institution declared under section 3 of the University Grants Commission Act, 1956 (of 1956) to be a deemed university for the purposes of that Act.

(ii) an institution declared by Parliament by law to be an institution of national importance

(iii) a college maintained by or affiliated to a University.

5. DSIR has registered a number of universities under the provisions of the above notifications which empower the registrars of universities to issue essentiality certificates. Similarly Govt. owned colleges or colleges which are fully funded by the central/state Govt. and which are having recognition from University for research at Ph.D level or at PG level at Engineering, Medicine or Computer Science, Post-doctoral research by faculty/scholars, or colleges undertaking research sponsored by industry/government or other organizations have also been registered by DSIR, which empower the Principal or Director to issue the essentiality certificate for equipment, spares, accessories, consumables needed for research purposes. There is no chance in the procedure for Universities and Govt. owned Centre.

6. As regards privately funded/managed colleges which are affiliated to universities, it has been decided with the approval of Hon’ble Minister (HRD and S&T) that Universities to which these colleges are affiliated will issue essentiality certificates on case to case basis (for each item) to these colleges for equipment, spares, accessories, consumables exclusively required for research purposes only provided:

* the Colleges are recognized as Ph.D. level research center in natural, applied and/or social sciences or for PG level courses in agricultural sciences, engineering and/or computer science by universities to which they are affiliated,

* the colleges have research/academic council of their own to screen and review the research programmes or their research programmes are screened by the universities.

7. Medical colleges are not eligible for issuance of the essentiality certificates by universities for customs and excise duty exemption under above mentioned notifications.

8. DSIR has prepared a set of guidelines for Registrar of the Universities for purposes of issuing essentiality certificates to the affiliated private colleges (on case to case basis for each item of imports or indigenous purchases) for equipment, spares, accessories, consumable for exclusively needed for such purposes. The guidelines are enclosed herewith for your kind retention and compliance.

9. Henceforth, the privately funded/managed colleges will not be given registration by DSIR and if any college holds such registration it ceases to be valid beyond 31.08.1998.

10. The Universities, while submitting the half-yearly returns of imports/indigenous purchases to DSIR should include the details of duty free imports/indigenous purchases availed by the private colleges for which essentiality certificates have been issued by the University.

This issue with the approval of Hon’ble Minister (HRD and S&T)

Sd/-
(Jagdish Singh)
Joint Adviser

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