Regarding Exemption under Agri. Infrastructure Incentive Scrip
July, 12th 2012
[ PUBLISHEDIN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No.31 / 2012 - Central Excise
New Delhi, dated the 9thJuly, 2012
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) underVisheshKrishiand GramUdyogYojana(Special Agriculture and Village Industry Scheme) from,-
(i) thewhole 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) thewhole 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) thewhole 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)thatthe said scrip is issued to a Status Holder who is exporter of products specified in paragraph 3.13.4of the Foreign Trade Policy:
Providedthat 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;
(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 ofthe 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:
Providedthat the scrip shall be transferable amongst Status Holders forprocurement of Cold Chain equipment:
Providedfurther 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;
(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 orproformainvoice 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 shallpay 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,videnotification No.01 (RE 2012)/2009-2014, dated the 5thJune, 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,videPublic 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 inpara3.10.2 of the Foreign Trade Policy.
Cold storage units (including Controlled Atmosphere and Modified Atmosphere Stores);PrecoolingUnits and Mother Storage Units for Onions.
Pack Houses; the Pack House equipments notified in Appendix 37 F of Hand Book of Procedures Volume 1, namely:- (1) Packing grading equipments for fruits and vegetables, (2) Equipments for ripening of fruits including ethylene generator, (3) Adiabatic humidifiers for cold rooms, (4) Gas sensor and controlled system covering CO2, ethylene and oxygen levels, (5) Ethylene scrubbers, (6) CO2 scrubbers, (7) Blast freezers for IQF plants, (8) Doors for gastight rooms, applications like CA, Banana/fruit ripening, (9) Nitrogen generators, (10) Gas controlling systems for CA stores, (11) Bulk bins for CA stores, (12) Reach stackers for cold stores and warehouses, (13) Belt driven conveyors for bulk handling of cargo and (14) Gantry cranes, unloading, mechanized loaders for bulk and break bulk cargo.