Import duty benefits under Custom Notification 50/2017(T) S.No.414

[BRIJMOHAN GOYAL]

Sir,

We are importing Raw material , Components etc for manufacture and supply of Power Plant Equipment. We are importing with concessional custom duty under Custom Notification 50/2017 at S.No. 414 against Essentially Certificate (EC) issued by Authority as per notification.

We need confirmation for :-

(1) Benefit of this notification is applicable for items Import by Manufacturer and dispatched to Project Site without any value addition i.e. directly from Port of discharge to Project Site.

(2) Benefits of this notification is also applicable for Spares to be supplied to Project , which will be used by Project Authority later on for maintenance of plant i.e Supply from Plant without any value addition.

Regards,

BM Goyal

[Rajagopalan Ranganathan]

Sir,

Sl. No. 414 of Notification No. 50/2017-Cus. (T) dated 30.6.2017 as amended stipulates that "All goods falling under Chapter 84 or any other Chapter, imported by a manufacturer- supplier for the manufacture and supply of machinery and equipment to a power generation plant (other than captive power generation plant)" is subjected to concessional rate of duty prescribed by the Notification.

Therefore, in my opinion, the concessional rate is not applicable to machinery and equipment imported as such and supplied to the Project Authority without subjecting them to any manufacturing process. The same will hold good for spare3s imported and supplied.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Rajagopalan.

AI Summary

Concessional duty applicability limited where goods are imported and supplied without manufacturing or value addition. Concessional duty under Notification 50/2017 S.No.414 applies to goods imported by a manufacturer-supplier for manufacture and supply of machinery and equipment to a power generation plant. It does not apply to machinery, equipment or spares imported and supplied 'as such' without any manufacturing process or value addition by the importer-supplier; direct deliveries to project sites and spares for later use by the project authority are excluded from the concessional treatment.