Machine procured under epcg

[Ram Babu]

we are registered with central excise and procured a machine under epcg scheme please let me know whether we required a installation certificate from excise department also as we have already taken a installation certificate from chartered enginners

certificate from department is neccessory only when the cerification from engineer

Reference FTP HPVol1

certification from department is neccary only when you are not able to get from Engineer

[Snehal Kulkarni]

Mr Razesh Sharma,

You have take the Installation Certificate from the Jurisdisctional AC/DC within Six Months from the date of installation. You may refer the Circular No.14 /2008-Cus dated 26-09-2008.

Charter Engineer Certificate is required in case where the assessee is not registered with Excise or for the Spares imported under EPCG.

As per para 5.3 of FTP HPVol1 and 5.31 Instaliation certifiction needs to be got witnin six months from the completion of import .its not necessary the cerifiction should be got fom AC/DC . in case of capital goods its 5 years

[Snehal Kulkarni]

Dear Mr Sri Srivathsan

Merely the relevant Para from FTP is not sufficient. These FTP/Customs/Excise are three different governing bodies under DoR.Any Change in FTP should be accompanied by the Customs/Excise Notification.

Please go through the Customs Notification No Notification No. 102/2009-Customs dated the 11.9.2009 para 10, where it is clearly mention that "

................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 :................."

So it is clear that one has to provide the Installation Certificate issued by the Central Excise (  Notification No. 102/2009-Customs dated the 11.9.2009 para 10 ) within the stipulated time.

As per the Customs Circular No 14 /2008-Cus dated 26-09-2008, if the Excise Department fails to produce the Installation Certificate within 30 Day from the date of application, then it is deemed to assume that Capital  goods are installed.

AI Summary

Installation certificate requirement: Excise-issued certification required for EPCG imports; deemed installation if department fails to respond.
Capital goods imported under EPCG must be certified as installed and in use in the importer's premises by the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise within the prescribed period; FTP references require supporting Customs/Excise notifications. A Chartered Engineer certificate is acceptable only where the importer is not registered with Excise or for spares. If the Excise department fails to produce the installation certificate within thirty days of application, a Customs circular provides that the goods may be deemed to have been installed.