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PUBLIC NOTICE NO. 128/2001 Date: 28.11.2001

Sub: Sharing of Diesel Generating Sets/Captive Power Plants, Central Air- Conditioning Equipments, Networking Equipments etc. of a STP unit by other units of the same owner under Software Technology Park Scheme – reg:
1. Attention of all Importers, CHA’s and all other concerned is invited on the above subject. The Central Board of Excise and Customs has received requests from the trade for allowing the units operating under STP scheme to share certain systems, such as Diesel Generating Sets/ Captive Power plants, Central Air-conditioning Equipment’s and Networking Equipments etc. With other units for the purpose of development of software and export thereof on the ground that this would reduce the transaction cost of different STP units owned by the same owner.

2. The matter has been considered by the Board. It has been decided that the items viz. Diesel generating sets/ captive power plants, central air-conditioning equipments, uninterrupted power supply system, networking equipments, data transfer protocol equipments, EPABX, Fax, photocopier equipments and security system imported/procured by a unit under STP scheme may be allowed to be utilised by other STP units belonging to the same owner. This facility is, in fact, limited to STP units by the same owner and are located in the same compound or nearby/ adjacent premises. Further, the equipments/systems etc. would not be allowed to be taken out of the bonded premises of the units, which has imported or procured the same duty free for the purpose of export. In order to implement this, notification No. 138/91-Cus, dated 22nd October, 1991, 140/91 Cus dated 22nd October, 1991 and 1/95-CE dated 4th January, 1995 have been suitably amended vide notification Nos. 106/2001-Cus & 49/2001-CE both dated 10.10.2001.

3. Under the STP scheme, the Letter of Permission is issued unit-wise; therefore, the export obligation and NEEP in respect of the said goods shall be discharged by the unit, which has imported/ procured the goods duty free. For availing of the facility, the unit desiring to allow utilisation of its goods by other STP unit as specified in the notification for the purpose, may approach the jurisdictional Commissioner of Central Excise or Customs, as the case may be, with an application. The Commissioner of Customs and Central Excise may after suitable verification of facts, give the necessary permission to the unit.

4. The items viz. Networking Equipments, Data Transfer Protocol Equipments and Central Air-conditioning Equipments, though do not find any specific mention in notification Nos. 138/91-Cus, dated 22nd October, 1991, 140/91-Cus, dated 22nd October, 1991 and 1/95-CE dated 4th January, 1995 governing duty free import/procurement of goods by the units under STP scheme are nevertheless allowed to be imported or procured without payment of duty as capital goods. However, for the purpose of clarity, notification Nos. 138/91-Cus, dated 22nd October, 1991, 140/91-Cus, dated 22nd October, 1991 and 1/95-CE 4th January, 1995 have been amended so as to mention these items specifically in the eligible list of items allowed to be imported/ procured duty free the notifications ibid.

(M. Dwivedi)
Commissioner of Customs (EP)

(Issued on the basis of Circular No. 53/2001-Cus dated 12.10.2001, No 305/85/2001 FTT of Govt. of India Ministry of Finance, Dept of Revenue (CBEC. New Delhi.)

F. No. S/16-Misc-119/100%EOU/2001

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