S.No.

Description of goods

Conditions

(1)

(2)

(3)

1.

All goods

If, -

(i) donated for the welfare of the defence personnel;

(ii) it is certified on the relevant clearance documents, by the producer or manufacturer, or the owner or keeper of the warehouse in which such goods are deposited, that the goods are intended to be donated for the above purpose without discrimination on the grounds of religion, race or caste or any of them and distributed among or utilised for the welfare of the defence personnel without making any charge therefor;

(iii) the goods are sent direct from the place of production, factory of manufacture, or, as the case may be, from the warehouse to the following agencies -

(a) the National Defence Fund;

(b) Citizens’ Central Council;

(c) the Ministry of Defence; or

(d) the Government of any State or Union Territory or any authority nominated by such Government to receive such donations; and

(iv) the producer, manufacturer, owner or keeper of the warehouse produces before the proper Central Excise Officer within two months of the date of removal of the goods from the place of production or factory, or, as the case may be, from the warehouse, or within such extended period as the Collector of Central Excise may in any case, allow, a certificate from any of the above agencies that the goods have been received by that agency for the purpose for which the donation was made.

2.

All goods

If, -

(i) donated to the National Defence Fund or the Ministry of Defence;

(ii) it is certified on the relevant clearance documents, by the producer or manufacturer of the goods, or the owner or keeper of the warehouse in which such goods are deposited, that the goods are intended to be donated as above;

(iii) the goods are sent direct from the place of production, factory of manufacture, or, as the case may be, from the warehouse to the National Defence Fund or the Ministry of Defence; and

(iv) the producer, manufacturer, owner or keeper produces before the proper Central Excise Officer within two months of the date of removal of the goods from the place of production or factory, or, as the case may be, from the warehouse, or within such extended period as the Collector may in any case, allow, a certificate from the National Defence Fund or the Ministry of Defence that the goods have been received by them.

3.

All goods other than cigarettes

If supplied as stores for consumption on board a vessel of the Indian Navy.

4.

Cigarettes falling under heading No. 24.03

If, -

(i) supplied as stores for consumption on board a vessel of the Indian Navy;

(ii) the manufacturer follows such procedure as may be specified in this regard by the Collector of Central Excise having jurisdiction over his factory; and

(iii) the Commanding Officer of the Indian Navy Ship issues to the officer-in-charge of the bonded warehouse from where the supply of cigarettes has been made, a certificate, within a period of six months from the date of supply of cigarettes on board the said ship, to the effect that the cigarettes supplied as stores on board the Indian Navy Ship have been consumed on board the said ship.

5.

All goods

If, -

(i) supplied to the Project SKYLARK under the Ministry of Defence; and(ii) before clearance of the goods, a certificate from the Project Director, Project SKYLARK to the effect that such goods are intended for assembly, erection and installation of Naval V.L.F. Transmitting Station (Tamil Nadu) under the said Project SKYLARK, is produced to the proper officer.

6.

Parts of motor vehicles falling under Chapters 45, 48, 68, 73, 85 or 87

If, -

(i) used in a Central Government Ordnance Factory for the manufacture of vehicles falling under Chapter 87 of the said Schedule; and

(ii) such use is elsewhere than in the factory of the production of such parts, the procedure set out in Chapter X of the Central Excise Rules, 1944, is followed.

7.

Systems and sub-systems of launch vehicle and systems and sub-systems of satellite Projects

If,-

(i) meant for use in a launch vehicle project or a satellite project of the Indian Space Research Organisation or the Government of India, Department of Space;

(ii) the manufacturer produces, before the clearances of the said goods, a certificate from an officer not below the rank of an Assistant Scientific Secretary in the Indian Space Research Organisation giving the description and quantity of each type of the said goods for which the exemption under this notification is claimed and certifying that the said goods are intended for use in a project mentioned above; and

(iii) the manufacturer produces, within five months from the date of clearance or within such extended period as the Assistant Collector of Central Excise may allow in this regard, a certificate from an officer not below the rank of an Assistant Scientific Secretary in the Indian Space Research Organisation indicating the date of receipt of the said goods by that organisation and certifying that the said goods have been actually used in a project mentioned above.

8.

Equipment and stores

If, -

(i) used for the systems and sub-systems of the Integrated Guided Missiles to be developed under the Integrated Guided Missiles Development Programme of the Government of India in the Ministry of Defence;

(ii) before clearance of the said goods, a certificate from the Chairman or Member Secretary of Programme Management Board or the Director of Management Services, Defence Research and Development Laboratory, in the Ministry of Defence to the effect that the said goods are intended for the aforesaid use, is produced to the proper officer.

(iii) such certificate or evidence as may be required by the proper officer for verifying that the said goods have been put to the aforesaid use, is produced; and

(iv) the aforesaid use is elsewhere than in the factory of production of the said goods, the manufacturer produces within five months from the date of clearance or within such extended period as the Assistant Collector of Central Excise may allow in this regard, a certificate from the said Chairman or Member Secretary or as the case may be the said Director, indicating the date of the receipt of the said goods by that organisation and certifying that they have been actually put to the aforesaid use.

9.

All goods falling under heading Nos. 86.01 to 86.06

If intended for use by the Indian Railways.

10.

Internal Combustion engines and electric storage batteries falling under Chapters 84 to 85

If, -

(i) such engines are designed for use as prime movers for transport vehicles and given for that purpose some special shape, size, or quality which would not be essential for any other purpose;

(ii) it is proved to the satisfaction of the officer not below the rank of Assistant Collector of Central Excise that they are intended to be used as original equipment parts in the manufacture of vehicles falling within Chapter 87 of the said Schedule, manufactured in a Central Government Ordnance Factory; and

(iii) such use is elsewhere than in the factory of their production, the procedure set out in Chapter X of the Central Excise Rules, 1944 is followed.

11.

Cast alloy permanent magnets falling under heading No. 85.05

If, -

(i) manufactured by any meteorological research laboratory of the Ministry of Defence;

(ii) the alloy used in the manufacture of such goods contains amongst others nickel or cobalt or both;

(iii) intended for purposes of defence or of research and development; and

(iv) an officer duly authorised by the Ministry of Defence furnishes a certificate, within three months of the close of every year or within such extended period as the Assistant Collector of Central Excise may allow, that such magnets have been used for any of the purposes aforesaid.

12.

Underwater batteries including cells of such batteries falling under heading No. 85.07

If, -

(i) manufactured for use by the Indian Navy; and

(ii) the concerned officer of the Indian Navy or the Directorate of Production and Inspection (Naval), not below the rank of Commander, furnishes a certificate, before removal, that the said goods are required for fitment to a submarine vessel including a Torpedo and Chariot of the Indian Navy and shall be so used.

13.

The following goods falling under heading No. 85.24, namely :-(a) Sound recorded magnetic tapes of width not exceeding 6.5 millimetres, whether in spools, or reels or in other form of packing (b) Television and sound recording media such as video tapes and video discs

If, -

(i) made from unrecorded articles falling under heading No. 85.23; and

(ii) (a)  not intended for sale; or

(b) intended for sale or supply to All India Radio or any other Department of Government of India in the Ministry of Information and Broadcasting; or

(c) intended for sale or supply in the form of U-matic video tapes formats of width not less than 19 millimetres, to Doordarshan.

14.

Bullet proof jackets

If, -

(i) supplied to the Armed Forces of the Union under the Ministry of Defence or to the Police Forces of the States or the Union territories; and

(ii) before the clearance of the said goods, in each case, an officer not below the rank of a Joint Secretary in the Ministry of Defence or in the Ministry of Home Affairs, as the case may be, recommends grant of this exemption indicating the full description and quantity of the said goods to be supplied to the forces mentioned above.

15.

All goods

If manufactured and consumed within the factory of production of the bullet proof jackets for supply to the Armed Forces of the Union under the Ministry of Defence or to the Police Forces of the States or the Union territories.

16.

All goods

If, -

(i) supplied to the Programme SAMYUKTA under the Ministry of Defence; and

(ii) before clearances of the goods, a certificate from the Programme Director. Programme SAMYUKTA to the effect that such goods are intended for the said Programme SAMYUKTA, is produced to the proper officer.