Spares imported under Zero Duty EPCG Scheme - Installation certificate thereof

[vinay wakde]

We have imported spares under zero duty Export Promotion of Capital Goods (EPCG) scheme. As per the Customs Notification No. 64/2008 – Customs dated 09.05.2008, the installation certificate for spares is required to be produced to Customs authorities within a period of three years from the date of importation. We have installed some spares after lapse of three years from the date of importation. The Excise authority is asking us to pay appropriate duty on these spares. Kindly advice whether we have to pay duty or any other alternative to save the duty?

Regards,

VINAY

AI Summary

EPCG installation certificate requirement: late installation may be condoned by DGFT, excise cannot demand import duties.
Spares imported under the Zero Duty EPCG scheme must have an installation certificate within three years of import; if installation occurs later, the importer should intimate delay, obtain the installation certificate on completion and apply to the EPCG committee for condonation, submitting proof of export obligation discharge; excise authorities do not have authority to demand import duties for EPCG non compliance.