Notification No. 64/1995-CE�-Exemption relating to goods denoted to defence personal, national defence fund or ministry of defence or supplied as stores for consumption on board a vessel of Indian navy

Notification No. 64/1995-CE� Dated 16/3/1995

Exemption relating to goods denoted to defence personal, national defence fund or ministry of defence or supplied as stores for consumption on board a vessel of Indian navy-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, goods specified in column (2) of the Table hereto annexed, and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), subject to the conditions, if any, specified in the corresponding entry in column (3) of the said Table, from the whole of -

(i) the duty of excise leviable thereon which is specified in the said Schedule; and

(ii) the additional duty of excise leviable under the second mentioned Act on goods specified against S. No. 1, 2, 3 and 4 of the said Table;

Provided that in respect of S. No. 16 of the said Table, nothing contained in this notification shall apply on or after the 1st day of December, 1999.

Provided further that in respect of S. No. 17 of the said Table, nothing contained in this notification shall apply on or after the 1st day of July, 2002.

¹ [Provided further that in respect of S.No. 23 of the said TABLE, nothing contained in this notification shall apply on or after the ⁷[the 1^st day of June, 2008] ^Old[1st day of December, 2007].]

Table

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 Commissioner 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 Commissioner 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 or Coast Guard.
⁵[3A.	Fuels falling under Chapter Heading 2710	If,- (a) manufactured and supplied by ¹⁰[any public sector oil company] ^Old[Indian Oil Corporation Limited] as stores for consumption on board a vessel of the Indian Navy or Coast Guard; or (b) procured by ¹⁰[any public sector oil company] ^Old[ Indian Oil Corporation Limited] from any other manufacturer of the said fuels and supplied as stores for consumption on board a vessel of the Indian Navy or Coast Guard: Provided that- (i) ¹⁰[such public sector oil company] ^Old[ Indian Oil Corporation Limited] obtains registration under rule 9 of the Central Excise Rules, 2002, with the Assistant Commissioner or Deputy Commissioner of Central Excise having jurisdiction over the concerned supply point; (ii) maintains records of receipt and supplies of these fuels; (iii) submits a monthly reconciliation statement to and proves to the satisfaction of the jurisdictional central excise officer that such fuels have been supplied as stores for consumption on board a vessel of Indian Navy or Coast Guard; and (iv) failing which ¹⁰[such public sector oil company] ^Old[ Indian Oil Corporation Limited] pays the excise duty leviable on fuels not properly accounted for along with interest.]
## New 4.	Cigarettes falling under heading 2402	If,-- (i) supplied as stores for consumption on board a vessel of the Indian Navy or Coast Guard; (ii) the manufacturer follows such procedure as may be specified in this regard by the Commissioner of Central Excise having jurisdiction over his factory; and (iii) the Commanding Officer of the Indian Navy or Coast Guard 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 or Coast Guard Ship have been consumed on board the said ship.
Old 4.	Cigarettes falling under heading No. 24.03	If,-- (i) supplied as stores for consumption on board a vessel of the Indian Navy or Coast Guard; (ii) the manufacturer follows such procedure as may be specified in this regard by the Commissioner of Central Excise having jurisdiction over his factory; and (iii) the Commanding Officer of the Indian Navy or Coast Guard 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 or Coast Guard 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 SKYLRK, is produced to the proper officer.
6.	Parts of motor vehicles falling under Chapter 45, 48, 68, 73, 85, 87, or motor vehicles in completely knocked down or semi-knocked down form	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 the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001,is followed.

⁶[7.]	Components, raw materials, tools, lubricants and propellants for and including systems and sub-systems of launch vehicles and satellite projects; scientific and technical instruments, apparatus, equipments (including computers); including their accessories, parts, spare parts, components and raw materials	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; and (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.
Old[7.]	Stainless steel sheets, systems and sub-systems of launch vehicle and stainless steel sheets, systems and sub-systems of satellite projects	³[Components, raw materials, tools, lubricants and propellants, systems and sub�systems of launch vehicles and satellite projects; scientific and technical instruments, apparatus, equipments (including computers); including their accessories, parts, spare parts, components and raw materials.] ^old[ 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) omitted
(Above Sl. No. 7, in column (2) has been substituted vide Ntf. No. 16/2003-CE, Dt. 01/03/2003)
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) omitted (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 Commissioner of Central Excise or Deputy Commissioner 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.	Omitted
10.	Internal Combustion engines and electric storage batteries falling under chapters 84 or 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 Commissioner 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 the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed.
11.	Omitted
## New 12.	Underwater batteries including cells of such batteries failing under heading 8507	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.
Old 12.	Underwater batteries including cells of such batteries failing 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.	Omitted
14.	Bullet proof jackets	If,- (i) supplied to the Armed Forces of the Union 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 grants 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 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.
17.	All goods	If,- (i) supplied to the Programme SANGRAHA under the Ministry of Defence; and (ii) before clearances of the goods, a certificate from the Programme Director, Programme SANGRAHA, Department of Defence Research and Development, to the effect that such goods are intended for the said Programme SANGRAHA, is produced to the proper officer.
18	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. # New Explanation � Nothing contained in this exemption shall have effect on or after the 1st day of June, 2006 Old Explanation � Nothing contained in this exemption shall have effect on or after 1st day of December, 2005.
(Sl. No. 18. has been amended vide Ntf. No. 51/2003-CX, Dt. 12/06/2003, No. 18/2004 dated 23-3-2004)
(Sl. No. 18 has been added vide Ntf. No. 11/2000-CE, dt. 1st March, 2000)
(Sl. No. 18 has been amended vide Ntf. No. 49/2000-CE, dt. 29-09-2000)
19.	All equipments; stores, systems and sub-systems; design, development or construction aids; computer hardwares and softwares required for design or development or construction or manufacturing activities connected with the programme, including jigs, fixtures and tools required for the programme.	If,- (i) the order or contract or letter of intent is placed on the manufacturer of the said goods by Headquarters ATVP or its authorised work centres; and (ii) before clearance of the said goods, a certificate from the Project Director or Director, ATV Programme (of the rank of a Real Admiral of the Indian Navy or of equivalent rank of the joint secretary to the Government of India), to the effect that the said goods are intended for the said use, is produced to the proper officer.
(Sl. No. 19 has been amended vide Ntf. No. 46/2000-CE, dt. 28-08-2000)
20.	Pistol 9mm. falling under Chapter 93	If,- (i) manufactured by M/S Bharat Dynamics Limited, Hyderabad and supplied to the Police Forces of the States or the Union territories; and (ii) before clearance of the said goods, an officer not below the rank of a Joint Secretary in the Ministry of Home Affairs, government of India recommends grant of this exemption indicating the full description and quantity of the said goods to be supplied to the said force.
(Sl. No. 20. has been inserted vide Ntf. No. 46/2001-CE, dt. 25-09-2001)
21.	All goods	If, - (a) the said goods are supplied for use in construction of warships of the Indian Navy or Coast Guard; and (b) before clearance of the said goods, a certificate from an officer not below the rank of a Rear Admiral of the Indian Navy or Coast Guard or Director General of Coast Guard or any other officer of the Indian Navy or Coast Guard equivalent to the Joint secretary to the Government of India, to the effect that the said goods are intended for the said use, is produced to the proper officer.
(Above Sl. No. 21 in column (3) bold words has been substituted vide Ntf. No. 16/2003-CE, Dt. 01/03/2003) (Sl. No. 21. has been inserted vide Ntf. No. 25/2002-CE, dt. 11-04-2002)

Note : Entry No. 22 has been inserted vide notification no. 15/2004 dated 27-2-2004
22.	All goods	If,� (i).supplied to the Programme DIVYA DRISHTI under the Ministry of Defence; and (ii).before clearances of the goods, a certificate from the Director, Defence Electronic Research Laboratory or Chief Managing Director, Electronics Corporation of India Limited, to the effect that such goods are intended for the said Programme DIVYA DRISHTI, is produced to the proper officer.".

¹ [23.	All good	If, - (i) supplied to the SAMYUKTA Programme under the Ministry of Defence; and (ii) before clearances of the goods, a certificate from the Programme Director, SAMYUKTA Programme to the effect that such good are intended for the said SAMYUKTA Programme, is produced to the proper officer.]
² [24.	Equipment and stores	If,- (i) used for the systems and sub-systems of Project ASTRA of the Government of India in the Ministry of Defence; (ii) before clearance of the said goods, a certificate from the Project Director, ASTRA, Defence Research and Development Laboratory, Hyderabad, in the Ministry of Defence to the effect that the goods are intended for the aforesaid use is produced to the proper officer; and (iii) 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 Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, may allow in this regard, a certificate from the said Project Director, ASTRA, indicating the date of receipt of the said goods by that organisation and certifying that they have been actually put to the aforesaid use.]
⁴[25	Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence	If,- (i) supplied to the Programme LR-SAM under the Ministry of Defence; and (ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer. Explanation. � Nothing contained in this exemption shall have effect on or after the 31^st day of May, 2011]
⁸[26	Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for Programme AD of Ministry of Defence	If,- (i) supplied to the Programme AD under the Ministry of Defence; and (ii) before clearance of the said goods, a certificate from the Member Secretary, Programme Management Board, Programme AD or Programme Director AD, Defence Research and Development Laboratory, Hyderabad , to the effect that such goods are intended for the said Programme AD, is produced to the proper officer. Explanation. � Nothing contained in this exemption shall have effect on or after the 16th day of July,2016.]
⁹[27	Ballistic grade aramid yarn	If,- (a) the goods are used in the manufacture of Ballistic grade aramid fabric required for the manufacture of bullet proof jackets for supply to the armed forces of the Union under the Ministry of Defence or the Police Forces of the States or the Union- territories; (b) the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed ; and (c ) it is proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction in the matter that such goods are intended to be used for the purpose specified at (a) above. �.
28]	Ballistic grade aramid fabric	If,- (a) the goods are used for the manufacture of bullet proof jackets for supply to the armed forces of the Union under the Ministry of Defence or the Police Forces of the States or the Union-territories; (b) the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed ; and (c ) it has been proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction in the matter that such goods are intended to be used for the purpose specified at (a) above.
¹¹[29]	Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence	If,- (i) supplied to the Programme LR-SAM under the Ministry of Defence; and (ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer. Explanation. � Nothing contained in this exemption shall have effect on or after the 25th day of November, 2011.
¹²[30]	Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence	If,- (i) supplied to the Programme LR-SAM under the Ministry of Defence; and (ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer. Explanation. � Nothing contained in this exemption shall have effect on or after the 25^th day of May, 2012.

Explanation.-For the purposes of this notification, the expression,-

(i) "underwater battery" means a lead acid battery consisting of cells connected in series or parallel combination to produce power to submarine vessels including Torpedo and Chariot;

(ii) "Armed Forces of the Union" includes the Central Reserve Police Force, the Indo Tibetan Border Police Force, the Special Services Bureau, the Border Security Force, the Central Industrial Security Force, the National Security Guard and the Assam Rifles, maintained or constituted under the Central Reserve Police Force Act, 1949 (66 of 1949), the Indo Tibetan Border Police Force Act, 1992 (35 of 1992), the Border Security Force Act, 1968 (47 of 1968), the Central Industrial Security Force Act, 1968 (50 of 1968), the National Security Guard Act, 1986 (47 of 1986) and the Assam Rifles Act, 1941 (5 of 1941).

² [Provided also that in respect of S.No.24 of the said TABLE, nothing contained in this notification shall apply on or after the 1st day of September, 2012.]

# Substituted vide 1/2006-Central Excise, Dated: January 24, 2006

## Substituted vide Notification No. 20/2006-CE dated 1/3/2006.

1 Inserted vide Notification No. 40/2006-CE Dated 21/8/2006

2. Inserted vide Notification No. 42/2006-CE Dated 20/10/2006

3. Changes vide Notification No. 15/2007-CE Dated 1/3/2007

4. Inserted vide Notification No. 30/2007-CE Dated 10/7/2007

5. Inserted vide Notification No. 37/2007-CE Dated 1/11/2007

6. Substituted vide Notification No. 7/2008-CE Dated 1/3/2008

7. Substituted vide Notification No. 15/2008-CE Dated 17/3/2008

8. Added vide Notification No. 6/2009-CE Dated 22/5/2009

9. Added vide Notification No. 27/2010-CE Dated 4/6/2010

10. Substituted vide Notification No. 30/2010-CE Dated 22/7/2010

11. Inserted vide Notification No. 34/2011-CE Dated 19/07/2011

12. Inserted vide Notification No. 4/2012-CE Dated 9/2/2012

as amended by [Notification No. 96/95-CE Dt. 26-5-1995, 116/95-CE Dt. 13-11-1995, 1/96-CE Dt. 1-1-1996, 7/98-CE Dt. 2-6-1998, 4/2000-CE Dt. 21-2-2000, 11/2000-CE Dt. 1-3-2000, 46/2000-CE dt 28-8-2000, 49/2000-CE dt 29-9-2000, 35/2001-CE dt 29-6-2001, 46/2001-CE dt 25-9-2001, 25/2002-CE dt 11-4-2002, 58/2002-CE dt 3-12-2002, 16/2003-CE dt 1-3-2003, 51/2003-CE dt 12-6-2003, 15/2004-CE dt 27-4-2004 , 18/2004-CE dt 23-3-2004, 1/2006-CE dated 24-1-2006, 20/2006-CE dated 1-3-2006, 40/2006-CE Dated 21/8/2006, 15/2007-CE dt. 1/3/2007, 30/2007-CE dt. 10/7/2007, 37/2007-CE dt. 1/11/2007, 7/2008-CE dt. 1/3/2008 ,15/2008-CE dt. 17/3/2008 ,6/2009-CE dt. 22/5/2009 27/2010-CE dt. 4/6/2010, 30/2010-CE dt. 22/7/2010, 34/2011-CE dt. 19/7/2011 and 4/2012-CE dt. 9/2/2012]