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OFFICE
OF THE COMMISSIONER OF CUSTOMS, |
PUBLIC NOTICE NO. 308 /2001
Sub: Definition of Capital goods given in sub-clauses (d) (e) and (f) of clause (1) to explanation to Zero duty EPCG notification No.29/97- Customs dated 01.04.1997- reg.
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Government
of India, Ministry of Finance, Department of Revenue, New Delhi, Circular
No.85/2000-Cus. F.NO. 605/39/99-DBK,
dated 27.10.2000, is reproduced below for the guidance of the Importers,
Clearing Agents and Trading Public.
C11/100/2001-AP(PORT)
CUSTOM HOUSE, CHENNAI-1. (S.SANKARAVADIVELU)
DATED: 28.11.2001 DY. COMMR. OF
CUSTOMS(APPG.)
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Attention
is invited to paragraph 1(i) and condition 5 of para 2 of Notification No.
29/97-Customs dated 1.4.1997 issued under Zero duty EPCG Scheme. In terms of
para 1(i) to the notification, inter-alia CVD exemption is exemption is
extended to capital goods for marine sector. In terms of condition (5) of para
2 of the notification, it is specified that zero duty benefit would be
available if the minimum value of imported capital goods is not less than Rs.
20 crore. The first proviso to condition (5) of para 2 of the said notification
further provides that, inter-alia in respect of textile and chemical sectors
the normal threshold limit of Rs. 20 crores gets reduced to Rs. 1 crore. For
the purpose of this notification, the definition of capital goods is given in
Explanation (1) to the notification and sub-clauses (d) (e) and (f) of clause
(i) thereof further define capital goods for marine, textile an chemical
sectors respectively.
2.
Doubts have been expressed whether on account of the definition of capital
goods for marine, textile and chemical sectors as given in sub-clauses (d), (e)
and (f) of clause (i) to Explanation (1) to notification No. 29/97-Cus., dated
1.4.1997, benefit of the notification would be available to all machinery
required by the aforesaid 3 sectors or it would be available only to machinery
specified in Annexures II, III and IV of the said notification even if the
total value of imported machinery exceeds Rs. 20 crores.
3.
The issue has been examined in the Board. It is clarified that the intention
behind specifying machinery required for marine sector in Annexure II of
Notification No. 29/97-Customs was to ensure that for marine sector CVD
exemption is extended only to the machinery specified in Annexure II. Similarly,
for textile and chemical sectors, the intention behind specifying the list of
machinery in Annexure III and IV respectively was to ensure that the lower
threshold limit of Rs. 1 crore is extended only to the machinery specified in
the said two Annexures. In other words, for marine, textile and chemical
sectors, zero duty benefit under said notification would continue to be
available to all other machinery not specified in the said Annexures so long as
the total CIF value of imported machinery is not less than Rs. 20 crores. This
intention of the Government is clear on a collective reading of para 1(i),
condition (5) of Para 2 and Explanation (1) to notification No. 29.97-Cus.
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