Not. No. 108/95 CE and 84/97 Cus

[Chintamani Bhide]

Dear all,

A project under ICB, funded by ADB and approved by Govt of India is awarded to Joint Venture, ABC. The project gets covered under clause C (ii) or (iii) of notification 108/95 CE and clause (ii) or (iii) of notification 84/97 Cus. The entire contract for execution of project is given to ‘A’ who is one of the constituents of the JV. PAC/Essentially Certificate issued to JV contains a list of suppliers/supporting manufacturers, (Indian and Overseas supplier ‘BC’. )
‘A’ intends to procure goods, equipments and machinery etc from listed suppliers.

1) Can these suppliers, subject to fulfillment of other conditions of the notification 108/95 CE, clear the goods w/o payment of excise duty to ‘A’ as a Buyer and ‘ABC JV’ as a consignee ?

2) Can ‘A’, subject to fulfillment of other conditions of the notification and filing BOE in his name, import from listed overseas supplier w/o payment of customs duty under 84/97 Cus ?

3) What would be the position if PAC/EC does not specifically mention the suppliers, whether local or overseas ?

AI Summary

ABC Joint Venture Explores Duty-Free Procurement Under Notifications 108/95 CE and 84/97 Cus for ADB-Funded Project A joint venture, ABC, awarded a project under an international competitive bidding scheme funded by the Asian Development Bank and approved by the Indian government. The project falls under specific clauses of notifications 108/95 CE and 84/97 Cus. The discussion involves whether 'A', a constituent of the JV, can procure goods from listed suppliers without paying excise and customs duties, contingent on meeting the notifications' conditions. Replies indicate that duty-free clearance is possible if conditions are met and suppliers are named in the PAC. However, exemptions may be granted in certain cases even if suppliers are not explicitly mentioned.