TaxTMI 
TaxTMI 
EOUs/EHTP/STP Units – Goods Manuf. and Packaging or Job Work for Export – No Excise Duty
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....g or job work for export of goods or services, into export oriented undertakings (hereinafter referred to as the user industry) other than those units referred to in clauses (b) to (c); (ii) manufacture or development of software, data entry and conversion, data processing, data analysis, control data management or call center services for export, into Software Technology Park (STP) Unit or a unit in Software Technology Park Complex under the hundred percent export oriented scheme (hereinafter referred to as the user industry ); or (iii) the manufacture or development of electronics hardware or electronic hardware and software in an integrated manner for export, into Electronics Hardware Technology Park (EHTP) unit or a unit in an Electronic Hardware Technology Park Complex (EHTP) under the hundred percent. export oriented Scheme ( hereinafter referred to as the user industry); or (b) ^38[High Speed Diesel oil for power generating sets as approved by the Board of Approval", shall be substituted and for the words and figures "-III" the words and letter "as specified in Annexure - B] when brought in connection with production, manufacture or packaging of goods as....
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.... Commissioner of Customs, as the case may be, (hereinafter referred to as the said officer) in the prescribed form and for such sum as may be specified by the said officer for the proper account of the receipt, storage and utilization of such goods, to achieve positive Net Foreign exchange Earning and comply with the conditions stipulated in this notification and the Foreign Trade Policy, and binding itself to pay on demand,- (a) an amount equal to duty leviable on the goods and interest at the rate specified in the notification of the Government of India, Ministry of Finance, Department of Revenue issued under section 11 AB of Central Excise Act, 1944 (1 of 1944) from the date of duty free procurement of the said goods till the date of payment of such duty, if - ^26[(i) in the case of capital goods, such goods are not proved to the satisfaction of the said officer to have been installed or otherwise used within the user industry, within the period of validity of the Letter of Permission (LoP); (ii) in the case of goods other than capital goods, s....
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....b) in case of failure to achieve the positive Net Foreign exchange Earning, the duty equal in amount to the portion of the duty leviable on the said goods but for the exemption contained in this notification and the duty so payable shall bear the same proportion as the unachieved portion of Net Foreign exchange Earning bears to the positive Net Foreign exchange Earning to be achieved along with interest at the rate of as specified in the notification of the Government of India, Ministry of Finance, Department of Revenue issued under section 11 AB of the Central Excise Act, 1944, from the date of procurement of the said goods till the payment of such duty. (5) the manufacturer of said goods follows the procedure contained in rules 11and ^43[16 of the Central Excise Rules, 2017]; (6) Omitted (7) the user industry engaged in trading shall not be allowed to,- (i) sell any goods so brought in the domestic tariff area or remove samples in the domestic tariff area ; (ii) export goods through merchant exporter or through any other exporters; (iii) transfer the goods to other export oriented undertaking or unit in Electronic Hardware Technology Park(EHTP) or Software techn....
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....goods partially processed or manufactured or packaged so taken out of India are specified in the Letter of Permission or Letter of Intent issued by the Development Commissioner;] (2a) The user industry may supply or transfer goods processed, manufactured, produced or packaged to another unit in a Special Economic Zone (SEZ), or Software Technology Park (STP) unit or Electronic Hardware Technology Park ( EHTP) unit or to another Export Oriented Undertaking (EOU), as the case may be, for any of the purposes specified in clauses (a) to (d) of paragraph 1, after giving intimation to the said officer and subject to maintenance of proper accounts of removal and receipt of goods ^31[***] (2b) The user industry may supply or transfer capital goods to another unit in a Special Economic Zone (SEZ) or Software Technology Park (STP) unit or Electronic Hardware Technology Park (EHTP) unit or to another Export Oriented Undertaking (EOU), as the case may be, for use within the unit after giving intimation to the said officer, subject to maintenance of proper accounts of removal and receipt of goods ^32[***] ^16[such transferred goods may also be returned by the second unit to the original u....
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....ds, raw material, consumables, spares, goods manufactured, processed or packaged, and scrap or waste or remnants or rejects are destroyed within the unit after intimation to Customs authorities or destroyed outside the unit with permission of Customs authorities: Provided that the remnants, remains or scrap after such destruction, if cleared into Domestic Tariff Area, applicable duty shall be levied on such goods: Provided further that this provision shall not apply to gold, silver, platinum, diamond, precious and semi precious stones.] Explanation. - The consultancy fees received by software delopment units in convertible foreign currency for consultancy service for development of software on 'site' abroad shall be deemed to be export for the purposes of fulfillment of positive Net foreign exchange Earning under this notification. 4. The user industry engaged in the processing or manufacture or production of articles of granite for export as specified in clause (d) in the opening paragraph, may be allowed to take the goods, ^44[as s....
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....port oriented undertaking or the units in the special economic zone engaged in processing or production or manufacture of articles of granite and export thereof and shall not be allowed to be exported as such or to be cleared in Domestic Tariff Area. 5. Notwithstanding anything contained in this notification, the said officer may permit the user industry engaged in,- (a) processing of agriculture products referred to in sub-clause (i) of clause (a) of opening paragraph of this notification to take out goods as specified at Sl. Nos. ^45[10 to 22 of Annexure-A, procured without payment of duty prior to 30.06.2017]; and (b) production or manufacture or packaging of articles as specified in clause (b) of opening paragraph of this notification to take out goods as specified at Sl. Nos.^46[1 to 9 of Annexure-A, procured without payment of duty prior to 30.06.2017], to the fields and farms of contract farmers of the user industry for production or in connection therewith; and to bring back the produce to the user industry for exports, in accordance with the provisions of Foreign Trade Policy and Handbook of Procedures, Volume-I and subject to the following conditions:- (....
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....^34[ (vii) the unit shall be required to have a premises for secure storage of goods procured duty free under this notification and the final products manufactured or produced therefrom and the details of the premises shall be declared to the said officer. ] 6. Notwithstanding anything contained in this notification, the exemption contained herein shall also apply to the goods used for the purposes of processing, manufacture, production or packaging of article or services in an user industry and such articles or services (including rejects, wastes, scrap and remnants arising out of such processing, manufacture, production, or packaging of such articles) even if not exported out of India are allowed to be cleared outside the user industry under and in accordance with the Foreign Trade Policy and subject to such other limitations and conditions as may be specified in this behalf by Development Commissioner, or the Board of Approval or the Inter Ministerial Standing Committee (IMSC), as the case may be, on payment of applicable duty of excise, or where such articles are cleared to the warehouse appointed or registered under notification of the Government of India in the Ministry of....
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....ions as may be specified by the said officer on this behalf, the said officer may allow the user industry - (i) to sell such surplus power in Domestic Tariff Area on payment of an amount equal to the duty leviable on consumables and raw materials but for the exemption of duty thereon, used for generation of each unit of power so sold in the Domestic Tariff Area on the basis of norms approved by the Board of Approval; (ii) to transfer such surplus power to other export oriented undertaking or Software Technology Park (STP) unit or Electronic Hardware Technology Park ( EHTP) unit or unit in special economic zone without payment of duty: Provided that both supplying and receiving unit shall maintain account for the quantity of consumables and raw materials used in generation of each unit of power so transferred as quantified on the basis of norms approved by the Board of Approval, for the purpose of calculation of Net Foreign exchange Earning (NFE). 8. Without prejudice to any other provision contained in this notification, the said officer may, subject to such conditions and limitation as he may deem fit to impose under the circumstances of the case for ....
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....te on which such goods have come into use for commercial production to the date of clearance ^35[***], as the case may be. ^18[(4) unit which has not availed any duty benefit on procurement of raw material, capital goods, etc., may be provided fast track de-bonding or exit from the STP or EHTP scheme.] (ii) such clearance ^35[***] of used packing material such as cardboard boxes, polyethylene bags of a kind unsuitable for repeated use maybe allowed without payment of any excise duty; (iii) such clearance ^35[***] of goods other than those specified in clauses (i) to (ii) above may be allowed on payment of excise duty leviable ^49[but for exemption] on such goods, on the full value at the time of their clearance from the factory of manufacture ^50[*********]. [Omitted] Explanation:-............ Provided that in a case of exit by a user industry where positive NFE criteria is fulfilled in terms of ^57[Para 6.17(g)] of Foreign Trade Policy, such clearance ^35[***] of goods shall be allowed under Advance Authorization as one time option on payment of applicable duty. 9. Notwithstanding anything contained in this notification, the said officer subject to the approval o....
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.... or (vi) a community information centre run by, the Central Government or, Government of a State or a Union territory or local body; or (vii) an adult education centre run by the Central Government or Government of a State or a Union territory or a local body ; or (viii) an organization of the Central Government or a Government of a State or a Union territory, subject to the conditions that the donee undertakes to observe the procedure prescribed by the said officer having jurisdiction over the donor unit for transport of the said goods from the donor unit to the premises of the donee and such goods shall not be used by the donee for any commercial purposes, and shall not be sold, disposed of, gifted, loaned, exchanged or parted with without the permission of the said officer having jurisdiction over the donor unit, within a period of five years from the date of receipt of the said goods and during the said period of five year and the jurisdictional Deputy Commissioner or Assistant Commissioner of Customs, as the case may be, may inspect the school, educational institution, charitable hospital, public library, establishment or community information centre, as the ....
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....the articles manufactured by the unit for consolidation into sets alongwith such articles and export thereof (for example, cuff-links procured for exports alongwith shirts manufactured by the unit or a brush procured for packaging with the hair dye manufactured and exported by the unit, etc.), subject to the following conditions, namely:- (a) no such exemption shall apply to gems and jewellery units; (b) the value of goods eligible for exemption shall not exceed 5% of the FOB value of such manufactured articles exported by the unit in the preceding financial year; (c) the list of goods to be procured under this clause shall be approved by the Board of Approval and the unit shall fulfill such conditions as may be specified by the Board of Approval in this behalf; and (d) the goods procured and articles manufactured by the unit shall be listed out separately in the export documents:"; ^11["Provided that the export value of such spares, components, promo....
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....lanation- For the purposes of this notification,- (i) "Board of Approval" means the authority appointed by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development or Regulation) Act, 1951(65 of 1951) and the rules made under that Act; (ii) " Domestic Tariff Area" means area except special economic zone, export oriented undertakings, Software Technology Park unit and Electronic Hardware Technology Park unit; ^62[(iii) 'Foreign Trade Policy' means Foreign Trade Policy, 2023 notified by the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub- section (ii), vide Notification No 1/2023, dated the 31st March, 2023;] (iv) "export oriented undertaking" has the same meaning as assigned to "hundred percent. export oriented undertaking" in clause (ii) to the Explanation of sub-section (1) of section 3 of the Central Excise Act, 1944 ( 1 of 1944); (v) "Electronic Hardware Technology Park (EHTP) unit" means a unit established under and in accordance with the Electronic Hardware Technology Park Scheme notified by the Government of India in the Ministry of....
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....ion No 1/2023, dated the 31st March, 2023.] ^54[ANNEXURE -A Sl. No. Description of Goods 1. Captive power plant including captive generating sets and transformers of capacity commensurate with the actual requirement of the unit and recommended by the Development Commissioner or Designated Officer. (For status holders, there shall be no requirement of recommendation by the Development Commissioner or Designated Officer). 2. Spares, fuel, lubricants, consumables and accessories for captive power plants including captive generating sets and spares, consumables and accessories for transformers as approved by the said officer. 3. Office Equipment including PABX, fax machines, video projection system, computer, laptop, server, spares and consumables thereof. 4. Raw materials. 5. Components. 6. Consumables. 7. Packaging materials. 8. Tools, jigs, gauges, fixtures, moulds, dies, instruments and accessories and spares thereof. 9. A Prototype or technical samples for each of the existing products for the purpose of product diversification, development or evaluation. 10. Filters. 11. Dripliers, Drip lines and Drip-fitt....
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....of Chapter 7. 5. Fresh and uncut/sun dried edible fruits and nuts of Chapter 8. 6. Fresh or sun dried plants and parts of such plants. 7. Silk worm cocoons and raw silk".] ANNEXURE - VI Form CT- 3 No.________________ Date_________ FORMCT- 3 Certificate for removal of excisable goods under bond This is to certify that : Mr./Messrs .................(Name and address) is/are bona fide licensee holding licence No........valid upto................ That he/they has/have executed a bond in Form B-17 (General Surety/General Security) No.........date.........for Rs............. With the Proper officer of Central Excise or Customs or Deputy Commissioner of Central Excise or Customs ........and as such may be permitted to remove..... (quantity) of ...............(excisable goods) from the unit at ..........to their undertaking .............at........................ That the specimen signatures of his/ their authorised agent, namely, Shri...................are furnished here below duly attested. Specimen Signatures Of the owner or his Authorised agent Sd/- Attested Central Excise Offic....
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....allowed on the basis of self-declared norms till such norms are fixed on ad hoc basis by the jurisdictional Development Commissioner within a period of three months from the date of self declared norms and the unit undertakes to adjust the self-declared/ ad hoc norms in accordance with norms as finally fixed by the Board of Approval with six months of fixation of ad hoc norms" 6. Substituted vide notification no. 26/2008 CE dated 5-5-2008, before substitution it was read as: "such clearance or debonding of capital goods may be allowed on payment of an amount equal to the excise duty leviable on such goods on the depreciated value thereof and at the rate in force on the date of debonding or clearance, as the case may be." 7. Inserted vide notification no. 26/2008 CE dated 5-5-2008 8. Substituted vide NOTIFICATION No. 03/2009-CE dated 23-2-2009, earlier it was read as under: "Spares up to 5% value of respective goods specified at Sl. No 1 to Sl No 29." 9. Substituted vide NOTIFICATION NO. 25/2009-CE dated 14-9-2009, For the words,[or cleared to the holders of certificate for duty free import from Apparel Export Promotion Council and Council for Leather Export as specified....
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....efore it was read as, "^12["(iii) 'Foreign Trade Policy' means Foreign Trade Policy, 2009 - 2014 notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub section (ii) vide notification No. 1/2009-2014, dated the 27th August, 2009, as amended from time to time.";]" 23. Substituted vide vide Not. 28/2015 - Dated 15-5-2015 before it was read as, "^13["(vi) 'Handbook of Procedures (Volume-I)' means Handbook of Procedures (Volume-I) notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-I, Section-1 vide Public Notice No. 1/2009-2014, dated the 27th August, 2009, as amended from time to time,";]" 24. Substituted vide vide Not. 28/2015 - Dated 15-5-2015 before it was read as, "(x) "Status holder" means importer recognized as Export House (EH), Star Export House (SEH), Trading House (TH), Star Trading House (STH) and Premier Trading House (PTH) in terms of ^14["Paragraph 3.10.2 of Foreign Trade Policy"." 25. Substituted vide vide Not. 28/2015 - Dated 15-5-2015 before it was read as, ""Para ....
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....uts utilized for the purpose of processing, manufacture, production or packaging of such articles (including rejects, waste, scrap and remnants) shall be available under this notification." 30. Substituted vide Not 31/2016 - Dated 24-8-2016, before it was read as, "bonded premises" 31. Omitted vide Not 31/2016 - Dated 24-8-2016, before it was read as," and following the rewarehousing procedure " 32. Omitted vide Not 31/2016 - Dated 24-8-2016, before it was read as, " and following the rewarehousing procedure " and "and by following the re-warehousing procedure" respectively. 33. Substituted vide Not 31/2016 - Dated 24-8-2016, before it was read as, " bonded premises " 34. Substituted vide Not 31/2016 - Dated 24-8-2016, before it was read as, "(vii) the user industry shall be required to have a premise(s) duty bonded under section 58 of the Customs Act, 1962 (52 of 1962), for storage of goods procured duty free under this notification and, of final products manufactured therefrom." 35. Omitted vide Not 31/2016 - Dated 24-8-2016, before it was read as, " "or to debond", "or debonding", "debonding or" and ", as the case may be" " respectively. 36. Omitted vide NOT....
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....s dated the 29^th March, 1958" 48. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "amount equal to the excise duty on the depreciated value thereof and at the rate in force on the date of ^35[***] clearance" 49. Inserted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 50. Omitted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "and at the rates in force on the date of payment of such excise duty" 51. Inserted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 52. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "Annexure-I to Appendix 14-I-G of Handbook of Procedure, volume 1" 53. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before it was read as "Vol. 2, 2004-09" 54. Substituted vide NOTIFICATION No. 23/2018-Central Excise dated 05-12-2018 before "ANNEXURE - I Sl. No. Description of Good 1 Capital goods and spares and accessories thereof. 2 Material handling equipments, namely, fork lifts, over-head cranes, mobile cranes, crawler cranes, hoists and stackers....
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....iculate, Rockwool, Cocoa pet, Hydrocorn, Foam based medium and other cultivation medium 26 Fertiliser and chemicals for pre and post harvest treatments such as micro nutrients, plant and growth regulators and other organic and inorganic substances used for plant nutrition, insecticides, fungicides, weedicides, herbicides and the like. 27. Raw materials for making capital goods for use within the unit for the purpose of production or manufacture of exports goods. 28. ^4[Any other item required within the user industry in relation to production for export goods or services with the prior approval of the Board of Approval or Inter Ministerial Standing Committee] ANNEXURE-II Sl.No. Description of Good 1. Green House equipment, accessories, heated rooting tables, propagation trays, seeding machines. 2. Growing media such as Peat Moss (including peat litres) (whether or not agglomerated), Pearlite/Vermiculate, Rockwool, Cocoa pet, Hydrocorn, Foam based medium and other cultivation medium. 3. Office equipments, spares and consumables thereof. 4. Fertilizers and chemicals for pre and post harvest treatments such as micro nutrient....
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....ower generating set and quality assurance equipments as recommended by Development Commissioner, and accessories. 4. Tools, Jigs, Gauges, Fixtures, Moulds, Dyes, Instruments and accessories. 5. Cold room apparels. 6. Chemicals for water treatment, Zeolite, Teaseed powder/cake, waste digesters, pesticides, fungicides, veterinary medicines including vaccines. 7. Office equipments, spares and consumables, thereof. 8. Feed for prawns/fish and other aquatic animals including Artemia (Brain Shrimp eggs) and other Hatchery feeds. 9. Raw materials for feeds for aquatic animals, namely, meals of fish and other aquatic invertebrates like squid/prawns in liquid, powder or other forms, fish lipid oil, squid oil, veterinary grade premix of vitamins/ minerals not suitable for human consumption, sea weed powder, kalp Meal, Molasses, yeast, choline chloride, Antioxidents excluding Vitamins, Licithin, Di-calcium Phosphate and Calcium Lactate which are capable of use in other than veterinary application. 10. Preservatives, pre-mix taste makers, battering materials, special cooking medium, bread crumbs/powder. 11 Packaging materials, all sorts. 12. ....