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Import Of Fire Fighting System under EPCG license

Customs - Started By: - SNEHAL SHAH - Dated:- 30-1-2016 Last Replied Date:- 17-2-2016 - Dear sir,We are the manufacturing of Chemical Products and wants to Import fire fighting system from USA .Can we Import above capital goods under EPCG license ??Please guide to us .Thanks and regards,SNE - Reply By MUKUND THAKKAR - The Reply = 5.01 EPCG Scheme (a) EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. accroding to me you can import .....

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ower generating sets, machine tools, equipment and instruments for testing, research and development, quality and pollution control. Can we consider fire fighting system in above definition ??Thanks and Regards,SNE - Reply By MUKUND THAKKAR - The Reply = I think , Fire Fighting system is covered under equipment. if I am wrong please correct me. - Reply By Rajagopalan Ranganathan - The Reply = Sir,Fire fighting equipment cannot be treated as capital goods since it is not going to be used for amnu .....

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Scheme. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By surya narayana - The Reply = Dear Friend,In my view, the subject equipment can be imported under EPCG without any doubt since the definition itself clearly indicated that the use of Capital goods can be either directly or indirectly. Even otherwise also, the firefighting system is part of plant and it is a mandatory requirement to ensure safe manufacturing activity.The Notification cited was the one wh .....

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ts then better to file representation with the Chairman EPCG Committee, Udyog Bhawan, New Delhi for approval. - Reply By KASTURI SETHI - The Reply = Dear Experts, After searching and going through a large number of Board's circulars, Notifications and case laws for the past period and current period on EPCG Scheme, I agree with the views of Sh.Mukund Thakkar, Sir and Sh.Surya Narayana Sir.In my view, Fire extinguisher is a capital goods as per definition of 'Capital Goods' laid down .....

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s Capital Goods in Service Tax. In Central Excise also, Fire extinguisher (8424.10.00) was included in the definition of 'Capital Goods' under erstwhile Rule 57 Q of Central Excise Rules, 1944 vide Notification No.18/99-CE(NT) dated 28.2.1999 though it was for different purpose i.e. availment of Modvat Credit on capital goods. There cannot be two different yardsticks for Service Tax and Customs, especially, in view of the same function/usage and purpose of Fire Extinguisher whether insta .....

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ing final decision by the questioner so as to avoid any risk, if there is any. Thanks to M/s. YAGAY AND SUN for communicating basic notification on this issue. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Sh. Kasturi ji,Agree with you that there can;t be different treatment under Service Tax, Customs or Excise laws, but different Acts has defined the definition considering their Policy & Acts, hence as per Apex Court decision, the same legislative intent has to be followed. For e.g. Draw .....

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turer the criteria is entirely different. Custom Notification is always issued against the FTP. DGFT does not follows Custom Notifications as they go by their own Policy & Act. Above all agree that party should take up with EPCG Committee as have been stated earlier also, and present importance of its use in manufacturing as you can put up these fire extinguishers at any place even in office, where production is not feasible. In majority of the cases DGFT has disallowed EPCG against Fire ext .....

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n whether verbal or in writing. That is why 99% demand cases are confirmed. In such like cases, natural justice can be got through appellate routes only. I also infer from your views that there is no room for logic in the eyes of law. I would like to reiterate that the purpose of fire extinguisher is the same whether placed in a factory or office or hotel or anywhere.In my view, fire extinguisher is a capital goods and eligible for the benefit of EPCG Scheme. - Reply By CS SANJAY MALHOTRA - The .....

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e officer from Ministry of Power & Revenue both are involved, validates use of item whether then same is for power generation / transmission or act as part of machine and then allow the Import under EPCG.Use of Imported Goods is important and critical factor for determining its eligibility for Import under EPCG scheme.If Fire Extinguishers use is declared as protection system for property and human beings, its not considered as capital good as not related with either manufacture or productio .....

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T. It's for the industry to raise voice to have unique definition across all laws to have better compliance. - Reply By KASTURI SETHI - The Reply = Dear Sir, Agreed. The eligibility of fire extinguisher as capital goods may vary from case to case. Can't we say at the whims of ________ ???? - Reply By CS SANJAY MALHOTRA - The Reply = Dear Sh. Kasturi ji,Offices in DGFT are better than others as one finds team comprising of cross sectional officers from various Ministries thus doing away m .....

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em is imported or purchased locally against the relevant duty paid? yes or no.Malay Pota - Reply By KASTURI SETHI - The Reply = Respected MALAY POTA, YES. In Central Excise, Fire extinguisher (8424.10.00) was included in the definition of 'Capital Goods' under erstwhile Rule 57 Q of Central Excise Rules, 1944 vide Notification No.18/99-CE(NT) dated 28.2.1999 . availment of Modvat Credit on capital goods. At present also Cenvat Credit is allowed as capital goods. Factory is not safe witho .....

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