In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) ( hereinafter referred to as the Central Excise Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts excisable goods of the description specified in column (3) of the Table below, and falling within the Chapter, heading No. or sub-heading No. of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Central Excise Tariff Act), specified in the corresponding entry in column (2) of the said Table, produced or manufactured in an export oriented undertaking or an Electronic Hardware Technology Park (EHTP) Unit or a Software Technology Park ( STP) Unit and brought to any other place in India in accordance with the provisions of Export and Import Policy and subject to the relevant conditions specified in the Annexure to this notification, and referred to in the corresponding entry in column (5) of the said Table, from so much of the duty of excise leviable thereon under section 3 of the Central Excise Act as specified in the corresponding entry in column (4) of the said Table.
Table
(a) the duty of customs specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), read with any other notification in force was reduced by 50%, and
(b) no additional duty of customs was leviable under sub-section (5) of section 3 of the said Customs Tariff Act: Provided that while calculating the aggregate of customs duties, additional duty of customs leviable under sub-section (5) of section 3 of the said Customs Tariff Act shall be included if the goods cleared into Domestic Tariff Area are exempt from payment of sales tax or value added tax.
Illustration: - Assuming product X has the value ? 100/- under section 14 of the Customs Act, 1962, and for the purposes of this illustration, is chargeable to basic customs duty of 10% ad valorem and additional duty of 20% ad valorem only, then the computation of duty required to be paid would be as follows:
Basic Customs duty but for this exemption= ? 10/-
Basic Customs duty because of this exemption= ? 5/- Value for the purposes of calculation of additional duty = ? 100/- + ? 5/- = ? 105/-
Additional duty= 20% of ? 105/- = ? 21/-.
Total duty payable after this exemption= ? 5/- + ? 21/- = ? 26/-
Illustration.- Assuming product X has the value Rs. 100 under section 14 of the Customs Act,1962 and is chargeable to basic custom duty of 25% ad valorem, special additional duty of 4% ad valorem and not chargeable to additional duty. The computation of duty required to be paid would be as follows:
Basic Customs duty = Rs. 25/
Value for the purpose of special additional duty if leviable = Rs. 100/- + Rs. 25/- = Rs. 125/
special additional duty if leviable= 4% of Rs. 125/-= Rs. 5.0/
Total duty payable but for this exemption= Rs. 25/-+ Rs. 5.00/-= Rs. 30.00/Thirty per cent. of the aggregates of the duties of customs= 30% of Rs.30.00/-= 9.00/
Duty required to be paid in accordance with this notification = Rs. 9.00/-
ANNEXURE
(i) the goods are produced or manufactured wholly from the raw materials produced or manufactured in India;
(ii) the goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (e), (e) and (g) of Paragraph 6.07 of the Foreign Trade Policy; and
(iii) such finished goods, if manufactured and cleared by the unit other than export oriented undertaking are not not chargeable to "NIL" rate of duty.
(ii) such finished goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (d), (e) and (g) of Paragraph 6.07 of the Export and Import Policy; and (iii) the goods, if manufactured and cleared by the unit other than export oriented undertaking are wholly exempt from duties of Excise or are chargeable to "NIL" rate of duty.
(i) the Advance License Holder/Duty Free Import Authorisation Scheme] holder fulfills all the procedural requirements of Customs which are required to be fulfilled if the goods are imported against such Advance License or Duty Free Import Authorisation Scheme except the requirement of specific port of import; and
(ii) the quantity and the value of each of the items are debited by the Deputy Commissioner or Assistant Commissioner of Customs or Central Excise as the case may be, in the said Advance License or Duty Free Import Authorisation Scheme and legible endorsement made by the Deputy Commissioner or Assistant Commissioner of Customs or Central Excise as the case may be, on the said Advance License or Duty Free Import Authorisation Scheme to that effect.
2. The notifications of the Government of India in the erstwhile Ministry of Finance, Department of Revenue vide Nos. 103/93-Central Excise, dated 27 th December, 1993 (G.S.R. 783 (E), dated the 27 th December, 1993, 2/95-Central Excise, dated the 4 th January, 1995 (G.S.R 9(E), dated the 4 th January, 1995) , 6/97-Central Excise, dated 1 st March, 1997 (G.S.R. 112 (E), dated the 1 st March, 1997), 8/97-Central Excise, dated the 1 st March, 1997 (G.S.R. 114(E), dated the 1 st March,
1997), 20/97-Central Excise, dated the 11 th April, 1997 ( G.S.R 219 (E), dated the 11 th April, 1997), 13/98-Central Excise, dated the 2 nd June, 1998 (G.S.R 308 (E), dated the 2 nd June, 1998), 28/2001-Central Excise, dated the 16 th May, 2001 (G.S.R. 359 (E), dated the 16 th May, 2001), and 20/2002-Central Excise, dated 1 st March, 2002 (G.S.R. 141(E), dated the 1 st March, 2002) are hereby rescinded.
3. This notification shall come into force on the 1 st day of April, 2003.
Explanation I - For the purposes of this notification,-
(i) Omitted
(ii) 'Foreign Trade Policy' means Foreign Trade Policy, 2023 notified by the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub- section (ii), vide Notification No 1/2023, dated the 31st March, 2023;
(iv) "Electronic Hardware Technology Park unit " means a unit established under and in accordance with the Electronic Hardware Technology Park (EHTP) Scheme published by the Government of India in the Ministry of Commerce vide notification No. 5(RE- 95) 92-97, dated 30th of April, 1995 and approved by an Inter Ministerial Standing Committee appointed by the Government of India in the Ministry of Industry (Department of Industrial Development) vide notification No. S.O.117 (E), dated the 22nd February, 1993;
(v) 'Handbook of Procedures' means Handbook of Procedures, 2023 notified by the Ministry of Commerce and Industry, published in the Gazette of India, Extraordinary, Part-I, Section-I, vide Public Notice No 01/2023, dated the 1st April, 2023;
(vi) "Software Technology Park unit" means a unit established under and in accordance with Software Technology Parks (STP) Scheme published by the Government of India in the Ministry of Commerce vide notification No. 4/(RE-95)/92-95, dated 30th April, 1995 and approved by an Inter Ministerial Standing Committee appointed by the Government of India in the Ministry of Industry (Department of Industrial Development) vide notification No. S.O. 117(E) dated the 22nd February, 1993;
(vii) "Domestic Tariff Area" means India except special economic zones and export oriented undertaking, Software Technology Park units and Electronic Hardware Technology Park units.
Explanation II. - For the purposes of this notification, following supplies shall be treated as imported goods:
(i) goods received from any export oriented undertaking or Software Technology Park unit or Electronic Hardware Technology Park unit, as the case may be;
(ii) goods received from Domestic Tariff Area under benefits of deemed exports under 34[Paragraph 7.03(a) and (b)] of the Foreign Trade Policy.
D. S. Garbyal
Under Secretary to the Government of India
F. No. 305/45/2003-FTT