Exemption to capital equipments and spare parts required for maintenance of such equipments imported under Export Promotion Capital Goods (EPCG) Scheme.
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 capital equipments, and spare parts required for maintenance of such capital equipment not exceeding 10% of the C.I.F. value of the capital equipments actually imported, when imported into India by an importer undertaking an obligation to receive payments in freely convertible foreign currency for services rendered through the use of such capital equipment, equivalent to four times the C.I.F. value of the said capital equipments and spare parts over a period of five years, from so much of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is in excess of 15% ad valorem and whole of the additional duty leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said Customs Tariff Act, subject to the following conditions, namely :-
(i) the capital equipments and spare parts imported are covered by a valid licence issued on or before 30th April, 1995 under the Export Promotion Capital Goods (E.P.C.G.) Scheme for Service Sector in terms of the Export and Import Policy and the said licence is produced for debit at the time of clearance;
(ii) the importer, at the time of clearance, produces before the [Assistant Commissioner of Customs or Deputy Commissioner of Customs], a certificate from the licensing authority for having executed a bond under paragraph 45 of the Export and Import Policy; and
(iii) the importer at the time of clearance of the said capital equipments and spare parts makes a declaration before the Assistant Commissioner of Customs or Deputy Commissioner of Customs], in such form as the said [Assistant Commissioner of Customs or Deputy Commissioner of Customs] may specify, binding himself to pay on demand an amount equal to the duty leviable on such capital equipments and spare parts, but for the exemption contained herein, in respect of which the conditions of this notification have not been complied with and
(iv) where the licensing authority grants any extension of the period for fulfilment of export obligation or regularisation of shortfall in export obligation not exceeding 5% of such export obligation, in terms of, and subject to satisfaction of such conditions as may be specified in Public Notice of the Government of India the Ministry of Commerce in this regard, the said period of fulfilment of export obligation may be extended, but shall in no case be extended beyond the 31st March, 2002, and the said short fall in export obligation condoned by the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be.
2. In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12th August, 2013.
Explanation. - in this notification, -
(i) "capital equipment" means the equipment as may be specified in a Public Notice issued by the Director General of Foreign Trade in this behalf and required for rendering services for which payment is received in freely convertible foreign currency:
Provided that against licences issued on or after 31st March, 1994 the "capital equipments", in relation to an importer, being a hotel or a restaurant, means the equipments for use in the hotel or the restaurant specified in the Table annexed hereto;
(ii) "Export and Import Policy" means Export and Import Policy, 1 April 1992 - 31 March 1997 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC (PN) 92-97, dated the 31st March, 1992, as amended from time to time; and
(iii) "licensing authority" means Director General of Foreign Trade, appointed under Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence.
TABLE
(STUDIO QUALITY)
amended by Notifications No. 108/94-Cus., dated 4-4-1994; No. 101/95-Cus 26-5-1995 and No. 108/95-Cus., dated 5-6-1995,No. 46/2013-Cus, 26-09-2013, Not. 26/2017 - Dated 29-6-2017