TMI BlogEOUs/EHTP/STP Units – Excise Exemption on Goods Cleared to DTAX X X X Extracts X X X X X X X X Extracts X X X X ..... ed to in the corresponding entry in column (5) of the said Table, from so much of the duty of excise leviable thereon under section 3 of the Central Excise Act as specified in the corresponding entry in column (4) of the said Table. TABLE Sr. No. Chapter or heading No. or sub-heading No. Description of Goods Amount of Duty Conditions (1) (2) (3) (4) (5) 1. Any chapter All goods Duty of excise leviable thereon as is equivalent to the additional duty of customs leviable on such goods under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), read with the proviso to sub-section (1) of section (3) of the said Central Excise Act. 1 19 [1A Omitted] 19 [1B Omitted] [2] 2. Any Chapter All goods In excess of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argeable to additional duty. The computation of duty required to be paid would be as follows: Basic Customs duty = ₹ 25/- Value for the purpose of special additional duty if leviable = ₹ 100/- + ₹ 25/- = ₹ 125/- special additional duty if leviable= 4% of ₹ 125/-= ₹ 5.00/- *Total duty payable but for this exemption= ₹ 25/-+ ₹ 5.00/-= ₹ 30.00/- Thirty per cent. of the aggregates of the duties of customs= 30% of ₹ 30.00/-= 9.00/- Duty required to be paid in accordance with this notification = ₹ 9.00/- 4 5. 26 [Omitted] 5A. 26 [Omitted] 6. 26 [Omitted] 7. 26 [Omitted] 7A. 26 [Omitted] 8. 26 [Omitted] 9. 26 [Omitted] 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Foreign Trade Policy; and (iii) such goods , if manufactured and cleared by the unit other than export oriented undertaking are not wholly exempt from duties of Excise or are not chargeable to 'NIL' rate of duty. 28 [3A Omitted] 4. If,- (i) the goods are produced or manufactured wholly from the raw materials produced or manufactured in India; (ii) such goods are cleared in the Domestic Tariff Area in accordance with sub-paragraphs (a), (d), (e) and (g) of 36 [ paragraph 6.07 ] of the Foreign Trade Policy; and (iii) the goods, if manufactured and cleared by the unit other than export oriented undertaking are wholly exempt from duties of Excise or are chargeable to 'NIL' rate of duty. 5. 28 [Omitted] 6. 28 [Omitted] 7. 28 [Omitted] 8. 28 [Omitted] 9. 28 [Omitted] 10. 28 [Omitted] 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of 1944); (iv) Electronic Hardware Technology Park unit means a unit established under and in accordance with the Electronic Hardware Technology Park (EHTP) Scheme published by the Government of India in the Ministry of Commerce vide notification No. 5(RE- 95) 92-97, dated 30th of April, 1995 and approved by an Inter Ministerial Standing Committee appointed by the Government of India in the Ministry of Industry (Department of Industrial Development) vide notification No. S.O.117 (E), dated the 22nd February, 1993; 38 [ (v) Handbook of Procedures means Handbook of Procedures, 2023 notified by the Ministry of Commerce and Industry, published in the Gazette of India, Extraordinary, Part-I, Section-I, vide Public Notice No 01/2023, dated the 1st April, 2023; ] (vi) Software Technology Park unit means a unit established under and in accordance with Software Technology Parks (STP) Scheme published by the Government of India in the Ministry of Commerce vide notification No. 4/(RE-95)/92-95, dated 30th April, 1995 and approved by an Inter Ministerial Standing Committee appointed by the Government of India in the Ministry of Industry (Department of Industrial Develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he value ₹ 100/- under section 14 of the Customs Act, 1962, and for the purposes of this illustration, is chargeable to basic customs duty of 10% ad valorem, additional duty of 20% ad valorem only, then the computation of duty required to be paid would be as follows: Basic Customs duty but for this exemption= ₹ 10/- Basic Customs duty because of this exemption= ₹ 2.5/- Value for the purposes of calculation of additional duty = ₹ 100/- + ₹ 2.5/- = ₹ 102.5/- Additional duty= 20% of ₹ 102.5/- = ₹ 20.50/-. Total duty payable after this exemption= ₹ 2.5/- +Rs. 20.5/- = ₹ 23/- 3. Inserted vide notification no. 26/2008 CE dated 5-5-2008 4. Has been substituted vide Notification No. 58/2008 dated 7/12/2008 before it was read as, In excess of amount equal to 4% of duty of excise specified in the First Schedule to the Central Excise Tariff Act,1985( 5 of 1986) Explanation.- The value of the goods shall be determined in terms of section 4 of the Central Excise Act. Further substituted vide notification no. 10/2009 CE dated 7-7-2009 , before it was read as, In excess of Nil Explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Act. Further substituted vide notification no. 10/2009 CE dated 7-7-2009 , before it was read as, In excess of amount equal to 4% of duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985( 5 of 1986). Explanation.- The value of the goods shall be determined in terms of section 4 of the Central Excise Act. 9. Substituted vide notification no. 24/2009 dated 31-8-2009 , before it was read as, In excess of ₹ 250 per 10Gms. Further Substituted vide Notification No. 3/2012-CE, dated 16/01/2012 , before it was read as:- 9 [In excess of Rs. 14 [750] per 10 Gms] 10. Substituted vide notification no. 24/2009 dated 31-8-2009 , before it was read as, In excess of ₹ 500 per Kg. Further Substituted vide Notification No. 3/2012-CE, dated 16/01/2012 , before it was read as:- 10 [In excess of Rs. 15 [1500] per Kg.] 11. Substituted vide notification no. 25/2009 dated 14-9-2009 , before it was read as, (ii) 'Foreign Trade Policy' means the Foreign Trade Policy, 1st September, 2004-31st March, 2009 published by the Government of India in the Ministry of Commerce and Industry vide notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted vide Not. 16/2015 - Dated 1-3-2015 , before it was read as, 13 [12%] 22. Substituted vide Not. 16/2015 - Dated 1-3-2015 , before it was read as, 13 [12%] 23. Substituted vide Not. 28/2015 - Dated 15-5-2015 before it was read as, 11 [(ii) 'Foreign Trade Policy' means Foreign Trade Policy, 2009 - 2014 notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub section (ii) vide notification No. 1/2009-2014, dated the 27th August, 2009, as amended from time to time.] 24. Substituted vide Not. 28/2015 - Dated 15-5-2015 before it was read as, 12 [(v) 'Handbook of Procedures (Volume-I)' means Handbook of Procedures (Volume-I) notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-I, Section-1 vide Public Notice No. 1/2009-2014, dated the 27th August, 2009, as amended from time to time,] 25. Substituted vide Not. 16/2017 - Dated 30-6-2017 w.e.f. 1st July, 2017, before it was read as, Chapter, heading No. or sub-heading No. of the First Schedule to the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shall be determined in terms of section 4 of the Central Excise Act.] 5 7A. 3006 10 or 60 All goods, of man made fiber not subjected to any process 8 [In excess of amount equal to 22 [12.5%] of duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986). Explanation. - The value of the goods shall be determined in terms of section 4 of the Central Excise Act.] 5 8. 71 Plain Gold Jewellery 9 [In excess of 16 [10%] ad valorem] 6 9. 71 Studded Gold Jewellery In excess of 5% ad valorem. 6 10. 71 Plain Silver Jewellery 10 [In excess of 6% ad valorem] 6 11. Any Chapter Rags, trimmings and tailor cuttings arising in the course of manufacture of ready made garments In excess of 'Nil'. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actured by the unit wholly from the raw materials produced or manufactured in India except the use of duty paid imported inputs upto 3% of the FOB value of exports of the said unit in the preceding financial year; (iv) the said unit exercises an option in terms of Para 6.8 (l) of the Foreign Trade Policy for availing this exemption by informing in writing to the jurisdictional Deputy/Assistant Commissioner of Customs or Central Excise: Provided that- (a) such option is exercised before effecting first clearances into Domestic Tariff Area on or after 1st day of April in any financial year: Provided that for the remaining period of the year 2008-09, such option shall be exercised before effecting first clearances in Domestic Tariff Area on or after 1st June, 2008; (b) such option shall not be withdrawn during the remaining part of the financial year; and (c) once such option is exercised, the unit shall not be allowed to import or utilize duty free inputs for any purpose; and (v) the said goods, if manufactured and cleared by a unit other than an export oriented undertaking are not wholly exempt from duties of Excise or are n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding Software, Rejects, Scrap, Waste or Remnants; (a) being cleared in Domestic Tariff Area, other than scrap, waste or remnants are similar to the goods which are exported or expected to be exported from the units during specified period of such clearances in terms of Foreign Trade Policy; (b) the total value of such goods being cleared under sub-paragraphs (a),(d),(e) and (g) of Paragraph of the Foreign Trade Policy, into Domestic Tariff Area from the unit does not exceed 50% of the Free on Board value of exports made during the year (starting from 1st April of the year and ending with 31st March of next year) by the said unit; (c) the balance of the production of the goods which are similar to such goods under clearance into Domestic Tariff Area, is exported out of India or disposed of in Domestic Tariff Area in terms of Paragraph 6.9 of the Foreign Trade Policy; (iii) clearance of goods into Domestic Tariff Area under sub-paragraphs (a), (d), (e) and (g) of Paragraph 6.8 of the Foreign Trade Policy shall be allowed only when the unit has achieved positive Net Foreign Exchange Earning ; and (iv) clearance of goods into Domestic Tariff Area und ..... 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