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

Duty exemption under notification 108/95 CE: suppliers may clear goods duty-free for listed projects if PAC names suppliers.
Suppliers to a project may clear goods without payment of excise duty to the buyer and with the joint venture as consignee if all conditions of the excise notification are met, the original project authorization certificate is deposited with the jurisdictional excise office, and the buyer and joint venture hold TIN numbers; similarly, duty free import from listed overseas suppliers requires submission of the project authorization certificate to the jurisdictional customs office, while absence of supplier names in the certificate generally precludes clearance or import though exceptions have arisen on a case by case basis.