Notification No. 10/1995-Cus Dated 07-03-1995

Exemption relating to inputs imported for manufacturing of Iron & Steel intermediates:-In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts inputs required for the manufacture of iron and steel intermediates when imported into India, from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :-
 

(1) that the importer has been granted necessary import licence (hereinafter referred to as the said licence) by the Licensing Authority for the import of the said inputs for the aforesaid purpose in terms of Engineering Products Export (Replenishment of Iron and Steel Intermediates) Scheme as notified by the Government of India in the Ministry of Commerce Notification No. S.O. 130(E) dated the 1st March, 1995 and the said licence has been produced at the time of clearance for debit by the proper officer of customs;
 

(2) the importer furnishes proof of having executed a bond in such form and for such sum as may be specified by the Licensing Authority binding himself to fulfil the obligations and conditions of the said licence;
 

(3) the importer furnishes a bond, with such surety or security, in such form as may be specified by the Assistant Collector of Customs binding himself to pay on demand an amount equal to the duty leviable on the said inputs but for the exemption contained herein, in respect of which the conditions specified in this notification have not been complied with;
 

(4) that the importer produces a certificate from the Licensing Authority in evidence of having discharged the obligation relating to supply of iron and steel intermediates to the Engineering Products exporters to the satisfaction of the Assistant Collector of Customs within a period of thirty days from the expiry of period allowed for fulfilment of the obligation or within such extended period as the said Assistant Collector of Customs may allow;
 

(5) that the inputs so imported are utilised for the manufacture of iron and steel intermediates or for replenishment of inputs already used for such manufacture and no portion of inputs so imported shall be loaned, transferred, sold or disposed of in any other manner and the importer furnishes an account of the use of the inputs so imported to the satisfaction of the Assistant Collector of Customs;
 

(6) that the iron and steel intermediates supplied have been manufactured without availing input stage credit under rule 57A of the Central Excise Rules, 1944;
 

(7) that the import is undertaken through the Sea Ports at Bombay, Calcutta, Cochin, Kandla, Mangalore, Marmagao, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam or through the Airports at Ahmedabad, Bangalore, Bombay, Calcutta, Delhi, Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad and Madras or through the Inland Container Depots at Bangalore, Coimbatore, Delhi, Gauhati, Moradabad, Ludhiana and Hyderabad :
 

Provided that the Collector of Customs may by special order and subject to such conditions as may be specified by him permit imports through any other Sea Port, Airport, or Inland Container Depot or through a Land Customs Station.
 

Explanation. - In this notification, —
 

(i) “Engineering Products” means export items (other than iron, steel, ferro alloys and refractories) specified under the export product group “Engineering Products” in the I-O Norms and which have already been exported;
 

(ii) `I-O Norms’ means the Standard Input-Output and Value Addition norms as contained in the Hand Book of Procedures (Volume II) published vide Public Notice No. 121(PN)/92-97, dated the 31st March, 1992 of the Government of India in the Ministry of Commerce, as amended from time to time;
 

(iii) “inputs” means raw materials, components, intermediates and consumables specified as import items in the I-O Norms and required for the manufacture of iron and steel intermediates;
 

(iv) “Iron and Steel Intermediates” means export items specified under sub-group “Iron, Steel, Ferro Alloys and Refractories” under the export product group “Engineering Products” in I-O Norms and in respect of which value addition has been specified in the I-O Norms, and such items are supplied to an exporter as replenishment for similar items already used in the manufacture of the Engineering Products against a Release Advice issued by the Licensing Authority :
 

Provided that no such Release Advice shall be issued by the Licensing Authority where —
 

(a) drawback under rule 6 or rule 7 of the Customs and Central Excise Duties Drawback Rules, 1971 has been availed in respect of such items; or
 

(b) benefit of duty exemption for such items has been availed under any other scheme; or
 

(c) Engineering Products were manufactured availing facility, under rule 191A or 191B as in force immediately before the 1st October, 1994, or under rule 12(1)(b) or 13(1)(b) of Central Excise Rules, 1944 in respect of such items; or
 

(d) input stage credit under rule 56A or 57A of the Central Excise Rules, 1944 was availed in respect of such items;
 

(v) “Licensing Authority” means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act;
 

(vi) “Release Advice” means a Release Order indicating the name, description and technical characteristics of the iron and steel intermediates, their quantities and value thereof as per the I-O Norms.
 

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