Notification No. 108/1995-CE -Goods supplied to un/intnl. organizations or proj. : exempt.

This Notification Superseded Vide Notification No. 10/2017-C.E. Dated 30/06/2017

Notification No. 108/1995-CE Dated 28/8/1995

Goods supplied to UN / international organizations or project : exempt.-

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 all goods falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said goods) when supplied to the United Nations or an international organisation for their official use or supplied to the projects financed by the said United Nations or an international organisation and approved by the Government of India, from the whole of -

(i) the duty of excise leviable thereon under section 3 of the Central Excises and Salt 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) :

Provided that before clearance of the said goods, the manufacturer produces before the Assistant Commissioner of Central Excise having jurisdiction over his factory, -

(a) in case the said goods are intended for the official use by the United Nations or an international organisation, a certificate from the United Nations or that international organisation that the said goods are intended for such use;

(b) in case the said goodss are -
(i) supplied to an international organisation listed in the Annexure appended to this notification for use in a project that has been approved by the Government of India and financed (whether by a loan or a grant) by such an organisation, a certificate from such an organisation that the said goods are required for the execution of the said project and that the said project has duly been approved by the Government of India; or
(ii) supplied to a project that has been approved by the Government of India and financed (whether by a loan or a grant) by a international organisation listed in the said Annexure, a certificate from an officer not below the rank of Deputy Secretary t the Government of India, in the Ministry of Finance (Department of Economic Affairs) that the said goods are required for the execution of the said project and that the said project duly been approved by the Government of India.

(c) in case the said goods are intended to be supplied to a project financed (whether by a loan or a grant) by the World Bank, the A. Development Bank or any international organisation other than those listed in the Annexure, and
    (i) if the said project has been approved by the Government of India, a certificate from. the executive head of the Project Implementing Authority and countersigned by an officer not below the rank of a Joint Secretary to the Government of India, in the concerned Line Ministry in the Government of India, that said goods are required for the execution of the said project that the said project has duly been approved by the Government of India, and
    (ii) if the said project has been approved by the Government of India for implementation by the Government of a State or a Union Territory, a certificate from the executive head of the Project Implementing Authority and countersigned by the Principal Secretary or the Secretary (Finance), as the case may be, in the concerned State Government or the Union Territory, that the said goods are required for the execution of the said project, and that the said project has duly been approved by the Government of India for implementation by the concerned State Government.

²[2. Where the said goods are cleared prior to the 1st March, 2008, the manufacturer may -

(a) transfer the said goods to a new project subject to the condition that the manufacturer produces before the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, a certificate from the officer concerned of the Central Government, State Government or Union territory Administration, as the case may be, that the said goods are no longer required for the said project and a declaration from the United Nations, the World Bank, the Asian Development Bank or any other international organization listed in the Annexure to the said notification that the said goods are required for the new project and the said project has duly been approved by the Government of India; or

(b) pay duty of excise which would have been payable but for the exemption contained herein on the depreciated value of the said goods subject to the condition that the importer produces before the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, a certificate from the officer concerned of the Central Government, State Government or Union territory Administration, as the case may be, that the said goods are no longer required for the existing project. The depreciated value of the said goods shall be equal to the original value of the goods at the time of clearance reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of clearance of the said goods, namely:-

(i) for each quarter in the first year at the rate of 4 per cent;
(ii) for each quarter in the second year at the rate of 3 per cent;
(iii) for each quarter in the third year at the rate of 2.5 per cent; and
(iv) for each quarter in the fourth year and subsequent years at the rate of 2%,

subject to the maximum of 70%.]

¹Explanation 1. - For the purpose of this notification, -

(a) "international organisation" means an international organisation to which the Central Government has declared, in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), that the provisions of the Schedule to the said Act shall apply.

(b) "Line Ministry" means a Ministry in the Government of India, which has been so nominated with respect to a project, by the Government of India, in the Ministry of Finance (Department of Economic Affairs).

¹[Explanation 2.-For the removal of doubts, it is hereby clarified that the benefit under this notification, in the case of goods supplied to the projects financed by the United Nations or an international organisation, is available when the goods brought into the project are not withdrawn by the supplier or contractor and the expression “goods are required for the execution of the project” shall be construed accordingly.]

Reference Vide INSTRUCTIONS[F.No.96/41/2015-CX.I] Dated 07/01/2016

ANNEXURE

1. United Nations Development Programme,
2. United Nations International Children's Fund,
3. Food and Agricultural Organisation,
4. International Labour Organisation,
5. World Health Organisation,
6. United Nations population Fund.
7. United Nations World Food Programme.
8. United Nations Industrial Development Organisation.

1. Numbered/Inserted vide Notification No. 13/2008-CE Dated 1/3/2008

2 Inserted vide Notification No. 11/2014-CE Dated 11/07/2014

as amended by [Notifications No. 7/98-CE dt 2-6-1998, 33/98-CE dt 13-10-1998, 4/99-CE dt 11-2-1999, 40/99-CE dt 2-11-1999, 36/2001-CE dt 6-7-2001, 50/2001-CE dt 12-10-2001 and 13/2008-CE dt. 1/3/2008.]