G.S.R. 543 (E).– In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise 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) and sub-section (3) of section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts capital goods specified in the Table annexed hereto, when cleared against an Agri. Infrastructure Incentive Scrip duty credit scrip issued to an exporter by the Zonal Office, Central Licensing Area, New Delhi in accordance with paragraph 3.13.4 of the Foreign Trade Policy (hereinafter referred to as the said scrip) under Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and Village Industry Scheme) from,-

(i) the whole of the duty of excise leviable thereon under the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(ii) the whole of the additional duty of excise leviable thereon under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957); and

(iii) the whole of the additional duty of excise leviable thereon under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978).

2. The exemption shall be subject to the following conditions, namely:-

(a) that the said scrip is issued to a Status Holder who is exporter of products specified in paragraph 3.13.4 of the Foreign Trade Policy:

Provided that the following categories of exports specified in paragraph 3.17.2 of the Foreign Trade Policy shall not be counted for calculation of export performance or for computation of entitlement under the Scheme, namely:-

(i) Export Oriented Units or Electronic Hardware Technology Parks or Biotechnology Parks, which are availing direct tax benefits or exemption;

(ii) Export of imported goods covered under Para 2.35 of the Foreign Trade Policy;

(iii) Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India;

(iv) Deemed Exports;

(v) Exports made by Special Economic Zone units or Special Economic Zone products exported through Domestic Tariff Area units; and

(vi) Items, which are restricted or prohibited for export under Schedule -2 of Export Policy in ITC (HS);

(b) that the benefits under this notification shall not be available for clearance of the items listed in Appendix 37B of the Hand Book of Procedures, Volume I;

(c) that the benefits under this notification shall not be available to goods or items, the imports of which are not permitted against the said scrip;

(d) that the scrip shall be non-transferable:

Provided that the scrip shall be transferable amongst Status Holders for procurement of Cold Chain equipment:

Provided further that the scrip shall be transferable for procurement of Cold Chain equipment by units in a Food Park recognized by the Ministry of Food Processing Industries. The term ‘units’ shall not include developers;

Provided also that the said scrip shall be transferable by the status holder, to whom it was issued, to its supporting manufacturer, who is neither a status holder nor has a unit (the term unit shall not include developer) in a Park recognised by the Ministry of Food Processing Industries, if such transfer is endorsed by the Regional Authority during the period of validity of the said scrip and upon such endorsement, the validity of the said scrip remains unchanged.

(Above third proviso has been inserted vide  NTF. NO. 15/2013-CE, DT. 18/04/2013)

(e) that the capital goods cleared under this exemption shall be utilized as per clause (d) of paragraph 3.13.4 of the Foreign Trade Policy;

(f) that the capital goods cleared under this exemption shall be subject to actual user condition;

(g) that the said scrip is registered with the Customs authority at the port of registration (hereinafter referred as the said Customs authority);

(h) that the holder of the scrip, who may either be the person to whom the scrip was originally issued or a transferee-holder, presents the said scrip to the said Customs authority along with a letter or proforma invoice from the supplier or manufacturer indicating details of its jurisdictional Central Excise Officer (hereinafter referred as the said Officer) and the description, quantity, value of the goods to be cleared and the duties leviable thereon, but for this exemption;

(i) that the said Customs authority, taking into account the debits already made towards imports under Notification No. 94/2009-Customs, dated the 11th September, 2009 and this exemption, shall debit the duties leviable, but for this exemption in or on the reverse of the said scrip and also mentions the necessary details thereon, updates its own records and sends written advice of these actions to the said Officer;

(j) that at the time of clearance, the holder of the scrip presents the said scrip debited by the said Customs authority to the said Officer along with an undertaking addressed to the said Officer that–

(A) in case of any amount short debited in the said scrip he shall pay on demand an amount equal to the short debit, along with applicable interest.;

(B) he shall comply with the actual user condition and also utilize the capital goods as per sub-paragraph (d) of paragraph 3.13.4 of the Foreign Trade Policy and that in case of non compliance of these conditions he shall pay on demand an amount equal to the duty leviable, but for the exemption contained herein together with applicable interest;

(k) that based on the said written advice and undertaking, the said Officer endorses the clearance particulars and validates, on the reverse of the said scrip, the details of the duties leviable, but for this exemption, which were debited by the said Customs authority, and keeps a record of such clearances;

(l) that the manufacturer retains a copy of the said scrip, debited by the said Customs authority and endorsed by the said Officer and duly attested by the holder of the scrip, in support of the clearance under this notification; and

(m) that the said holder of the scrip, to whom the goods were cleared, shall be entitled to avail the drawback or CENVAT credit of the duties of excise leviable under the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), against the amount debited in the said scrip and validated at the time of clearance.

Explanation - For the purposes of this notification, -

(A) “Foreign Trade Policy” means the Foreign Trade Policy, 2009-14, published by the Government of India in the Ministry of Commerce and Industry, vide notification No.01 (RE 2012)/2009-2014, dated the 5th June, 2102.

(B) “Handbook of Procedures Volume 1” means the Handbook of Procedures Volume 1, 2009-14, published by the Government of India in the Ministry of Commerce and Industry, vide Public Notice No. 01 (RE 2012)/2009-2014, dated the 5th June, 2012.

(C) “Status Holder” means the person having status category of ‘Export House’ or ‘Star Export House’ or ‘Trading House’ or ‘Star Trading House’ or ‘Premier Trading House’, as the case may be, as mentioned in para 3.10.2 of the Foreign Trade Policy.
 

[F. No. 609/12/2012-DBK]
 

(Rajesh Kumar Agarwal)

Under Secretary to the Government of India