Excise Duty Debit
on Capital Goods against SHIS Duty Credit Scrip for Status Holders
[Central Excise Notification No. 33 dated 9th
July 2012]
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 First Schedule and the Second Schedule
to the Central Excise Tariff Act, 1985 (5 of 1986), when cleared against a
Status Holder Incentive Scheme duty credit scrip issued to a Status Holder by
the Regional Authority in accordance with paragraph 3.16 of the Foreign Trade
Policy (hereinafter referred to as the said scrip) 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 has been issued by the Regional
Authority to a Status Holder against exports of the products of the sectors
namely, leather (excluding finished leather), textiles and jute, handicrafts,
engineering (excluding iron and steel, nonferrous metals in primary or
intermediate forms, automobiles and two wheelers, nuclear reactors and parts
and ships, boats and floating structures), plastics and basic chemicals
(excluding pharma products) made during 2009-10, 2010-11, 2011-12 or 2012-13 or
against exports of the following products made during 2010-11, 2011-12 or
2012-13, namely:-
(i) the chemical and allied
products (other than bulk minerals, granite or stones, processed minerals,
cement, clinkers and asbestos) of the First Schedule to the Customs Tariff Act,
1975 (51 of 1975), namely, rubber products covered under headings 4001 to 4010
and 4014 to 4017; paints, varnishes and allied products covered under headings
3208, 3209 and 3210; glass and glassware covered under Chapter 70; plywood and
allied products covered under Chapter 44; ceramics or refractories covered
under Chapter 69; paper, paper boards and paper products covered under Chapter
48; books, publications and printings covered under Chapter 49; animal
by-products covered under headings 35030030, 05069099, 05079010, 05079020,
05079050, 23011010, 23011090, 96062910, and 96063010; ossein and gelatine
covered under headings 05061039 and 35030020; graphite products covered under
headings 3801, 85451100 and 85451900 and explosives covered under headings
3601, 3602 and 3603; products covered under headings 3201, 32029010, 32030010,
3604, 3605, and 38021000;
(ii) electronic products;
(iii) sports goods and toys covered under Chapter 95
and headings 420321, 650610 of the First Schedule to the Customs Tariff Act,
1975 (51 of 1975);
(iv) the engineering products covered under Chapter
72 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), namely,
(i) iron and steel (ii) pipes and tubes (iii) ferro alloys:
Provided that, the following exports shall not be
considered for computation of entitlement under the scheme, namely:-
(1) export oriented units or electronic hardware technology parks or
biotechnology parks, which are availing direct tax benefits or exemption;
(2) export of imported goods covered under para 2.35 of the Foreign
Trade Policy;
(3) exports through transhipment, meaning thereby that exports
originating in third country but transhipped through India;
(4) Deemed exports;
(5) Exports made by Special Economic Zone units or Special Economic
Zone products exported through Domestic Tariff Area units;
(6) Export of items, which are restricted or prohibited for export
under Schedule-2 of Export Policy in ITC (HS);
(7) The exports made by the Status Holders during a particular year, if
benefits are availed under the Technology Upgradation Fund scheme of Ministry
of Textiles in that year:
Provided further that the said scrip has not been issued
in violation of the condition contained in sub-paragraph (4) of paragraph 2 of
notification No. 102/2009-Customs, dated the 11th September, 2009
pertaining to Zero Duty EPCG scheme or sub-paragraph (5) of paragraph 2 of
notification No.101/2009-Customs, dated the 11th September, 2009
pertaining to Zero Duty EPCG scheme for Common Service Providers, as the case
may be;
(b) that the benefits under
this notification shall not be available to clear the item listed in Appendix
37B of the Handbook 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 said scrip shall
be non-transferable and shall be used for clearance of capital goods relating to
sectors specified in condition (a):
Provided that the said
scrip shall be transferable amongst status holders subject to the condition
that the transferee status holder is a manufacturer and such transfer is
endorsed by Regional Authority during the period of validity of the said scrip,
mentioning the sectors for which the transferee has manufacturing facility and
for which transfer is granted:
Provided further that upon
such transfer, the validity of the said scrip shall remain unchanged;
(e) that the capital goods
cleared against the said scrip shall be subject to actual user condition;
(f) that the said scrip is
registered with the Customs authority at the port of registration (hereinafter
referred as the said Customs authority);
(g) 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;
(h) that the said Customs
authority, taking into account the debits already made towards imports under
Notification No. 104/2009-Customs, dated the 14th 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;
(i) 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 that in case of non compliance of this condition he shall
pay on demand an amount equal to the duty leviable, but for the exemption
contained herein together with applicable interest.
(j) 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;
(k) 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;
(l) 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) “capital goods” means any plant, machinery, equipment
or accessories required for manufacture or production, either directly or indirectly,
of goods or for rendering services, including those required for replacement,
modernization, technological up gradation or expansion. It also includes
packaging machinery and equipment, refractories for initial lining,
refrigeration equipment, power generating sets, machine tools, catalysts for
initial charge, equipment and instruments for testing, research and
development, quality and pollution control. Capital goods may be for use in
manufacturing, mining, agriculture, aquaculture, animal husbandry,
floriculture, horticulture, pisciculture, poultry, sericulture and viticulture
as well as for use in services sector;
(B) “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, 2012.
(C) “Handbook of Procedures Volume1” 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.
(D) ”Regional Authority” means the authority competent to
grant a scrip or Authorisation under the Foreign Trade (Development and
Regulation) Act, 1992 (22 of 1992).
(E) “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]