CUS NTF NO. 20/2004 DATE 16/01/2004

Govt reduces custom duty on non-edible oil, iron and steel articles, CNC systems, etc.
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest to do so, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002, namely:-

In the said notification,-

(A) in the Table,-

(i) for S.No.30 and the entries relating thereto, the following shall be substituted, namely:

(1)	(2)	(3)	(4)	(5)	(6)
"30.	15	(A) All oils, other than edible grade, having Free Fatty Acid (FFA) 20 percent or more and falling under heading 1507, 1508, 1509, 1510, 1511, 1512, 1513, 1514 or 1515, for the manufacture of soaps	20%	-	5
		(B) All oils, other than edible grade, having Free Fatty Acid (FFA) 20 percent or more and falling under heading 1507, 1508, 1509, 1510, 1511, 1512, 1513, 1514 or 1515	65%	-	-";

(ii) after S.No.441 and the entries relating thereto, the following shall be inserted, namely:-

(1)	(2)	(3)	(4)	(5)	(6)
"442.	72, 73, 84, 85 or 90	The following goods required for the manufacture of items of machinery, including prime movers, instruments, apparatus and appliances, control gear and transmission equipment, auxiliary equipment (including those required for research and development purposes, testing and quality control), namely :- (i) Iron and steel and articles thereof, falling under Chapter 72 or 73; (ii) CNC systems falling under tariff item 8537 10 10; (iii) Servo drives/ motors falling under heading 8501 or 8504; (iv) Precision spindles falling under sub-heading 8466 93; (v) Ball screws falling under tariff item 8583 00 00; (vi) LM guideways falling under tariff item 8482 80 00; (vii) Precision bearings falling under heading 8482; (viii) Precision gauging and balancing systems falling under sub-heading 9031 80 or 9016 00.	10%	-	5 and 95";

(B) in the Annexure, in the conditions, after condition 94, the following condition shall be inserted, namely:-

95. If before the clearance of the items of machinery, including prime movers, instruments, apparatus and appliances, control gear and transmission equipment, auxiliary equipment (including those required for research and development purposes, testing and quality control) (hereinafter referred to as the "capital goods"), where the capital goods are supplied for -

(i) initial setting up of a unit, the manufacturer furnishes a undertaking to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction over his factory, that the value of investment to be made in fixed assets in plant and machinery (excluding land and buildings) in the said unit, within a period of two years from the date of the first clearance under this exemption, shall not be less than rupees five crore and in the event of failure to comply with this condition, he shall pay an amount equal to the difference between the duty leviable on the imported goods but for the exemption under this notification and that already paid at the time of importation;

(ii) substantial expansion of an existing unit, the manufacturer proves to the satisfaction of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction over his factory, that the value of investment in fixed assets in plant and machinery (excluding land and buildings) in the said unit, is more than rupees five crore at the time of first clearance under this exemption.

Explanation.- For the purposes of this exemption, "unit" shall have the same meaning as assigned under the Project Import Regulations, 1986

[F.No. 332/1/2004-TRU]

(G.S.Karki)
Under Secretary to the Government of India

Note:- The principal notification No.21/2002-Customs dated the dated the 1st March, 2002, was published in the Gazette of India, Extraordinary, vide G.S.R.118 (E), dated the 1st March, 2002,and was last amended by notification No.18/2004-Customs, dated the 12th January, 2004 [G.S.R. 20 (E), dated the 12th January, 2004].

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