Notification No. 50/96-Cus Dated 23-07-96
Exemption on specified equipment, instruments, raw materials, components, pilot plant and computer software imported for any R & D projects.-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 equipment,
instruments raw materials, components, pilot plant and computer software
(hereinafter referred to as the said goods) and falling within the First
Schedule to the Customs, Tariff Act, 1975 (51 of 1975), when imported into
India, from the whole of the duty of customs, leviable thereon which is
specified in the said First Schedule and from the whole of the additional duty
leviable thereon under section 3 of the said Customs, Tariff Act, when imported
for any Research and Development Project (hereinafter referred to as the said
project) undertaken by any company, subject to the following conditions,
namely:-
(a) the said project is undertaken by any company having an in-house Research
and Development unit recognised by the Department of Scientific and Industrial
Research under the Ministry of Science ant Technology;
(b) the said project is funded by the Government of India in a Ministry or
Department or Council of Scientific and Industrial Research or Indian Council
of Medical Research or Indian Council of Agriculture Research or University
Grants Commission or Defence Research and Development Organisation or All
India Council for Technical Education as the case may be, and the share of
such Ministry or Department or Council of Scientific and Industrial Research
or Indian Council of Medical Research or Indian Council of Agriculture
Research or University Grants Commission or Defence Research and Development
Organisation or All India Council for Technical Education is not less than
twenty per cent. of the total cost of the said project;
(c) a certificate from an officer not below the rank of a Deputy Secretary to
the Government of India in the Concerned Ministry or Department or Council of
Scientific and Industrial Research or Indian Council of Medical Research or
Indian Council of Agriculture Research or University Grants Commission or
Defence Research and Development Organisation or All India Council for
Technical Education as the case may be, funding the said project is produced
to the Assistant Commissioner of Customs or Deputy Commissioner of Customs, in
each case, at the time of importation, indicating-
(i) the total cost of the project;
(ii) the cost of the project shared by such Ministry or Department or
Council of Scientific and Industrial Research or Indian Council of Medical
Research or Indian Council of Agriculture Research or University Grants
Commission or Defence Research and Development Organisation or All India
Council for Technical Education as the case may be;
(iii) the value of the goods already imported under this notification;
(iv) that the goods are imported for the purposes of the said project;
(d) the goods shall not be sold or transferred to any person or other
organisation for a period of five years from the date of their import;
Provided that the exemption under this notification shall be available
to the said goods only upto a value equivalent to the cost of the said project
shared by the Concerned Ministry or Department or Council of Scientific and
Industrial Research or Indian Council of Medical Research or Indian Council of
Agriculture Research or University Grants Commission or Defence Research and
Development Organisation or All India Council for Technical Education.
as amended by Notification Nos. 74/96-Cus dt 11-9-1996,
108/2003-Cus dt 14-7-2003 and 18/2005-Cus dt 1-3-2005.