Spares imported under zero duty EPCG scheme - Installation certificate reg.

[vinay wakde]

We have received Spares under Zero duty EPCG Scheme (Notification No. 102/2009 (Customs). The Spares received were installed in the factory. Beside our request letters to the jurisdictional Excise Range & Division, the installed spares are not physically verified and the installation certificate is pending since last couple of months. We are registered with Central Excise, hence, we do not have option to obtain certificate from independent Chartered Engineer (Notification No. 64/2008 – Customs dt. 09/05/2008). Kindly advice in the matter.

Regards,

VINAY

 

[YAGAY andSUN]

Dear Vinay,

You cannot obtain a certificate from independent chartered engineer as you are registered with Central Excise Department.  If required, have a meeting with the concerned jurisdictional Central Excise AC/DC or Commissioner in this regard.

You may also send the reminder letters to the concerned Range Superintendent of Central Excise with marking CC to Customs Department and DGFT.  You may also file an application under RTI.  Such steps would put some pressure on the jurisdictional Range Superintendent of C.E.

Be firm but polite in this matter. Keep the all correspondence intact for future references.

Regards

Team YAGAY & SUN

(Indirect Tax Consultants)

[Mahir S]

In case of import of spares, the installation certificate is to be produced within three years from the date of import. In your case, the import is done only a couple of months back, hence there is no need for any immediate rush for the installation certificate.

Also, officers are generally a bit more busy with office work during the month of March and also  few officers already entrusted with election duty work.

I suggest to wait for few months.
 

7) that the capital goods imported, assembled or manufactured are installed in the importer's factory or premises and a certificate from the jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise , as the case may be, is produced confirming installation and use of capital goods in the importer's factory or premises, within six months from the date of completion of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow :

Provided that in case of import of spares, the installation certificate shall be produced within three years from the date of import :

 

[MUKUND THAKKAR]

Dear

once  you submitted  the  request letter for  Installation certificate, wait  up to 30days. after 30days automatically  your  responsibility is  over  as  per  following  notice.

 Dated: 15.04.2009.

 

 TRADE NOTICE NO.  1 /AM-10

            Attention of the trade is invited to Customs Circular No.14/2008-Cus dtd:26^th September 2008 issued by Ministry of Finance, Department of Revenue under file No.602/01/2008-DBK, with reference to Para 5.3.2 of Hand Book of Procedure (HBP) Vol-I 2008-09.

            As stated therein the Central Excise Authority is required to issue installation certificate within 30 days from the date of acknowledgment of the application, if found in order. It is also stated that if the installation certificate is not issued within 30 days  from the acknowledgment date, it shall be deemed that the capital goods have been installed at the declared address.

            In view of above, and in the interest of the trade, it is hereby informed that where ever application for installation certificate is made to Central Excise Authority and if 30 days have lapsed from the date of acknowledgment of such application, the trade shall submit the copy of acknowledgment along with a Chartered Engineer certificate confirming the installation of the capital goods within six months from the date of imports. The said acknowledgment and Chartered Engineer Certificate shall be accepted by this office. However, the applicant shall submit declaration to the effect that no deficiency has been raised by the Excise Authority and orginal acknowledgment has not been called back by the Authority.

          

 Sd/-

 (SHAILESH SINGH)

 ZONAL JOINT DIRECTOR GENERAL OF FOREIGN TRADE                

Mukund Thakkar                  

AI Summary

Installation certificate requirement for imported spares: jurisdictional excise certification or deemed installation remedies available. Imported spares under the zero-duty EPCG scheme require an installation certificate issued by the jurisdictional Deputy or Assistant Commissioner of Central Excise for registered excise assessees; for spares the certificate must be produced within the extended period applicable to spares. If Central Excise acknowledges an application but fails to issue a certificate within the prescribed administrative period, trade guidance permits submission of the acknowledgement plus a chartered engineer's certificate and a declaration confirming no deficiency and non-recall of the acknowledgement, which will be accepted.