TaxTMI 
TaxTMI 
Exemption to Capital goods, their components and Spares when imported against on EPCG Licence
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....by a valid licence or a valid authorization issued under the Export Promotion Capital Goods Scheme in terms of Chapter 5 of the Foreign Trade Policy permitting import of goods at the rate of five percent duty and the said licence or authorisation is produced for debit by the proper officer of customs at the time of clearance: Provided that for import of spare parts specified at S.No.4 of the said Table, the validity period of the licence or authorisation shall be deemed to be the period permitted for fulfillment of the export obligation in full; (2) that the importer executes a bond in such form and for such sum and with such surety or security as mayd be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs binding himself to fulfil export obligation on FOB basis equivalent to eight times the uty saved on the goods imported as may be specified on the licence or authorisation, or for such higher sum as may be fixed by the Licensing Authority or Regional Authority, within a period of eight years from the date of issue of licence or authorisation, in the following proportions, namely :- S.No. Period from the date of issue of lice....
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....he importer does not claim exemption from the additional duty leviable ^17[ under sub-sections (1), (3) and (5) of section 3 ] of the Customs Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net duty saved for the purpose of fixation of export obligation provided the Cenvat credit of additional duty paid has not been taken; (4) that the importer produces within 30 days from the expiry of each block from the date of issue of licence or authorisation or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs may allow, evidence to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the export obligation of any particular block is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiry of the said block pay duties of customs of an equal amount equal to that portion of duties leviable on the goods, but for the exemption contained herein which bears the same proportion as the unfulfilled portion of the export obligation bears to the total....
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....of Customs or Assistant Commissioner of Customs], as the case may be, subject to the condition that the importer shall maintain accurate record of such movement. (6) that the imports and exports undertaken through seaports at Mumbai, Kolkata, Cochin, Magdalla, Kakinada, Kandla Mangalore, Marmagoa, Chennai, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Mundhra, Nagapattinam, Okha, Bedi (including Rozi Jamnagar), Muldwarka, Porbander, Dharamatar, Vadinar Haldia (Haldia Dock complex of Kolkata port) ^4[Krishnapatnam ^6[^12[Ennore (Tamil Nadu), Karaikal (Union territory of Puducherry) and Kattupalli (Tamil Nadu)]]] or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Chennai, Srinagar, Trivandrum, Varanasi, Nagpur, Cochin, Rajasansi (Amritsar), Lucknow (Amausi), ^11[Indore, ^14[Dabolim (Goa), Visakhapatnam and Calicut]] or through any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur....
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.... Regional Authority may grant further extension in the overall period of export obligation upto a period of further two years if the authorisation holder pays fifty per cent differential duty on the unfulfilled portion of the export obligation and agrees to fulfill other conditions as may be specified by the Regional Authority for this purpose. 3. Where the goods specified in the said Table are found defective or unfit for use, the said goods may be re-exported back to the foreign supplier within 3 years from the date of payment of duty on the importation thereof: Provided that at the time of re-export, the goods are identified to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, as the goods which were imported. TABLE S.No. Description of goods 1 2 1. Capital goods for pre-production, production and post production including second hand capital goods. 2. Capital goods in SKD/CKD conditions to be assembled into capital goods by the importer. ^13. Omitted ^24. spare parts of goods specified at S.Nos.1 and 2 as actually imported and required for maintenance of capit....
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.... (i) in relation to importers other than those rendering services, means exports to a place outside India, of products manufactured with the use of capital goods imported, assembled or manufactured in terms of this notification : Provided that export obligation may also be fulfilled by,- (a) export of same products capable of being manufactured with the use of said capital goods; or (b) export of same products manufactured in different units of the licence or authorisation holder; or (c) through third party exports made by an exporter or manufacturer on behalf of the licence or authorisation holder by exporting the same product and in such cases, inter-alia the shipping bills shall indicate name of both the third party and the licence or authorisation holder; or (d) making supplies of manufactured product in terms of paragraph 5.4 of the Foreign Trade Policy; or (e) export of other goods manufactured by the importer; (ii) in relation to importers rendering services, means, receiving payments in freely convertible foreign currency for services rendered through the use of capital goods : Provided that in resp....
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....ods by the importer.) 2. (The above S.No. has been substituted, vide Notification No. 72/2007 dated 21/5/2007 before it was read as:- Spare parts of goods specified at Serial Nos.1, 2 and 3 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured.) 3. (The words "including consumables" has been omitted, vide Notification No. 72/2007 dated 21/5/2007) 4. Substituted vide Notification No. 93/2010 - Customs, Dated 14/09/2010, before it was read as:- "and Krishnapatnam" 5. Substituted vide Notification No. 40 /2011 - Customs, Dated 19/05/2011 before it was read as:- " and Veerapandi(Tamil Nadu)" 6. Substituted vide Notification No. 37/2012-CUSTOMS, Dated 24/05/2012, before it was read as:- "and Ennore (Tamil Nadu)" 7. notification no. 123/2009 Customs dated 10/11/2009], before it was read as:- " Waluj (Aurangabad) " 8. Substituted vide Notification No. 93/2010 - Customs, Dated 14/09/2010, before it was read as:- "and Patli (Gurgaon)" 9. Substituted vide Notification No. 40/2012-CUSTOMS, Dated 14/06/2012, before it was read as:-"and Marripalem Village in Taluk of Edlapadu, District Guntur" 10. Substituted vide N....