Exemption to parts for setting up, or for assembly or manufacture of specified article - 181/87 - Customs -Tariff

Exemption to parts for setting up, or for assembly or manufacture of specified article Notification No. 181/87-Cus. Dated 29-4-1987 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 parts required for the purpose of initial setting up, or for the assembly or manufacture, of any article specified in the Table hereto annexed, when imported into India, and proved to the satisfaction of the Assistant Collector of Customs to be so required for such setting up, assembly or manufacture, from - (a) so much of that portion 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 the amount calculated at the rate of thirty-five per cent ad valorem; and (b) the whole of the additional duty leviable thereon under Section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (1) the authorities mentioned below are satisfied and certify in each case that the parts (specifying their description and quantity) in respect of which the exemption under this notification is claimed are, or will be, required for the purpose specified above and also recommend the grant of the above exemption :- (i) the Industrial Adviser or Additional Industrial Adviser in the Directorate General of Technical Development of the Government of India in the Ministry of Industry; (ii) the Director of Industries or the Commissioner of Industries of the State concerned, in the case of firms which are classified as falling in the small scale sector; (iii) the Textile Commissioner or any officer not below the rank of an Assistant Director specifically authorised by the Textile Commissioner, in the case of firms engaged in the manufacture of textile machinery or goods; or (iv) the General Manager or Deputy General Manager, as the case may be, of the concerned unit, in the case of Heavy Engineering Corporation Limited; (2) the importer furnishes an undertaking to the effect that, - (a) the said imported parts shall be used for the purpose specified above; (b) the account of the said imported parts received and consumed in the place of manufacture for the aforesaid purpose shall be maintained in the manner specified by the Assistant Collector of Customs; (c) he shall produce the extract of such account duly certified by the manufacturer evidencing receipt of the said components in the premises of the place of manufacturer within a period of 3 months or such extended period as the Assistant Collector of Customs may allow; and (d) he shall pay, on demand, in the event of his failure to comply with (a), (b) or (c) above an amount equal to the difference between the duty leviable on such quantity of the said imported goods but for the exemption contained herein and that already paid at the time of importation : Provided that nothing contained in this notification shall apply in respect of CNC system and components of such systems. TABLE Articles falling under the following heading Nos. of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), namely :- (1) 84.44 to 84.48 (excluding domestic knitting machines and auxiliary machinery for use with domestic knitting machines). (2) 84.51 (excluding dry cleaning machines). (3) 84.56 to 84.65.