As amended by Notification No. 96/95-CE, Dt.26-5-1995; 112/95-CE, Dt. 14-9-1995; 25/99-CE, Dt. 19-5-1999 and 2/2000-CE, Dt. 28-1-2000.

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts excisable goods specified in the Annexure I to this notification (hereinafter referred to as the said goods) when brought in an acquaculture farm from the factory of their manufacture or warehouse in connection with the operational requirement of such acquaculture farm and for export of acquaculture products produced or manufactured from such goods by the acquaculture farm operating as a hundred percent export oriented undertaking from the whole of -

(i) the duty of excise leviable thereon under section 3 of the Central Excises Act, 1944 (1 of 1944); and

(ii) the additional duty of excise leviable thereon under sub-section (1) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), subject to the following conditions, namely:
1. Ntf. No. 35/2002-Central ExciseNtf. No. 35/2002-Central Excise
   
   (1) the undertaking is approved by the Board of Approval for hundred percent export oriented undertaking appointed by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951) and the rules made under that Act (hereinafter referred to as the Board);
   
   (2) the undertaking brings the excisable goods directly from the factory of manufacture or warehouse.
   
   (2A) such undertaking executes a bond in such form and for such sum as may be prescribed by the Assistant Commissioner of Customs or Central Excise to fulfil the export obligations and comply with the conditions stipulated in this notification and the Export and Import Policy [OLD - Export and Import Policy, 1st April, 1997- 31st March, 2002, published by the Government of India under the Ministry of Commerce notification No. 1/1997-2002, dated 31st March, 1997 as amended from time to time, (hereinafter referred to as the Export and Import Policy) ] and binding itself to pay on demand an amount equal to duty leviable on the goods and interest at the rate of fifteen per cent. per annum on the said duty from the date of duty free procurement of the said goods till the payment of such duty;
   
   (In condition 2A Bold Words before OLD & fifteen per cent. has been substituted vide , Dt. 24/06/2002)
   1. 
      
      No. 25/99Ntf. No. 35/2002-Central Excise
      
      (i) in the case of on goods which are capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Central Excise to have been installed or otherwise used within the unit within a period of one year from the date of procurement thereof or within such extended period not exceeding five years as the Assistant Commissioner of Customs or Central Excise may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow;
      
      (ii) in the case of goods other than capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Central Excise to have been used in connection with the production or packaging of goods for export out of India or cleared for home consumption within a period of one year from the date of procurement thereof or within such extended period as the Assistant Commissioner of Customs or Central Excise may, on being satisfied that there is sufficient cause for not using them as above within the said period; allow;
      
      (iii) in case of-
      1. 
         (a) on goods as produced or packaged, such goods have not been exported out of India, and-
         
         (b) unused goods (including containers and packaging materials suitable for repeated use) as have not been exported or cleared for home consumption,
         
         Within a period of one year from the date of procurement of such goods or within such extended period as the Assistant Commissioner of Customs or Central Excise may, on being satisfied that there is sufficient cause for not using as above, allow;
      
      (iv) in the case of raw materials, components, spares and consumables (other than capital goods) procured duty free, the undertaking fails to achieve Net Foreign Exchange Earning as a Percentage of Exports (NFEP) and Export Performance (EP) as specified in Appendix-1 of the Export and Import Policy, within one year of procurement of such goods or within such extended period not exceeding one year as the Assistant Commissioner of Customs or Central Excise may, on being satisfied that there is sufficient cause, allow:
      
      Provided that the Commissioner of Customs or Central Excise may extend the period for achievement of Net Foreign Exchange as a Percentage of Exports (NFEP) or Export Performance (EP) for further period, not exceeding five years, from the date of procurement.
      
      (Inserted vide Notification dated 19-5-199)
      
      Explanation.- For the purposes of this notification, "Export and Import Policy" means the Export and Import Policy, 1st April, 2002 - 31st March, 2007, published by the Government of India in the Ministry of Commerce and Industry notification No.1/2002-07, dated 31st March, 2002, as amended from time to time.
      
      (Above Explanation has been inserted vide , Dt. 24/06/2002)
      
      
   
   (3) the entire excisable goods so brought are used by the undertaking for the purpose specified above;
   
   (4) the undertaking disposes of the said goods or the articles produced, manufactured, processed or packaged in the undertaking or the waste, scrap and remnants arising out of such production, manufacture, processing or packaging in the manner as provided in the Export-Import Policy and in this notification;
   
   (5) the undertaking executes a bond with the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise (hereinafter referred to as Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise) in the prescribed form and for such sum as may be specified by that Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, for the proper accountal of the receipt, storage and utilisation of such goods;
   
   (6) the undertaking satisfies the Development Commissioner that the said goods have been used for any of the purposes specified in the Export- Import Policy and in this notification;
   
   (7) the manufacturer of the said goods follows the procedures contained in rules 11 and 20 of the Central Excise Rules, 2002;
   
   (8) the undertaking follows the procedure contained in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, with the modification that a certificate in Form CT-3 annexed to this notification as Annexure-III shall be used by the Central Excise officer in charge of the user industry in place of an application in the Form at Annexure-I provided in the said rules;
   
   (Conditions (7) & (8) has been substituted vide , Dt. 24/06/2002)
   
   [OLD
   (7) the manufacturer of the said goods follows the procedure contained in rules 156-A and 156-B of the Central Excise Rules, 1944 (hereinafter referred to as the said rules) as modified by rule 173-N of the said rules;
   
   (8) the undertaking follows the procedure contained in Chapter X of the said rules with the modification that a certificate in form C.T. 3 as specified in Annexure II to this notification shall be used by the central excise officer in charge of the undertaking in place of a certificate in form C.T. 2 prescribed under the said rules.]

2. Notwithstanding anything contained in this notification the exemption contained herein shall also apply to the said goods used for the purposes of production or manufacture of acquaculture products within hundred percent Export-Oriented undertakings approved by the Board and such products (including rejects, waste and scrap material arising in the course of production or manufacture) even if not exported out of India, are allowed to be cleared outside the undertaking under and in accordance with the Export-Import Policy and subject to such other limitations and conditions as may be specified in this behalf by the Development Commissioner, on payment of appropriate duty of excise.

Provided that where such products (including rejects, waste and Scrap material arising in the course of production or manufacture) are not excisable, excise duty equal in amount to that leviable on the inputs obtained under this notification and used for the purpose of manufacture of such products which would have been paid but for the exemption under this notification, shall be payable at the time of clearance of such products.

(Inserted by vide Central Excise Notification No.40/2000, Dt.22-5-2000)

3. Without prejudice to any other provisions contained in this notification, the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise may, subject to such conditions and limitations as he may deem flit to impose under the circumstances of the case for the proper safeguard of the revenue interest and also subject to such permission of the Development Commissioner or the Board, where it is exclusively required under the Export and Import Policy, allow any undertaking to clear any of the said goods for being taken outside the undertaking, to any other place in India in accordance with the Export-Import Policy

(Amendement has been made as per the Central Excise Notification No.02/2000 dt.28th Jan, 2000)

(a) such clearance of capital goods, material handling equipment, office equipment and captive power plants or as the case may be, captive generating sets 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 payment of such duty;

Provided that in the case of capital goods, the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise may, ubject to such conditions as he may specify, permit destruction of such capital goods without payment of duty inside the undertaking, or outside the said undertaking, where it is not possible or permissible to destroy the same within the said undertaking, in the presence of the Customs or Central Excise Officer.

(Inserted by vide Central Excise Notification No.40/2000, Dt.22-5-2000)

(b) such clearance of used packing materials such as cardboard boxes, polythylene bags of a kind unsuitable for repeated use, may be allowed without payment of any excise duty;

(c) such clearance of goods [other than those specified in clauses (a) and (b) above] may be allowed on payment of excise duty leviable on such goods, on the full value at the time of their clearance from the factory of manufacture and at rates in force on the date of payment of such excise duty.

Explanation: The depreciation in respect of goods covered by clause (a) shall be allowed for the period from the date of commencement of commercial production of the unit or the date of receipt of the goods in the unit, whichever is later, till the date of payment of duty.
 

(Please refer Cus Cir No.38/2002 date 1/07/2002)

(Simplification of certain procedures relating to functioning of EOUs/EPZ/STP/EHTP/SEZ Units vide Cus Cir No.84/2001 Date 21/12/2001)