Goods supplied for defence and other specified purposes.
16-3-1995
Notification No. 64/95-Central Excise
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944) read
with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the
Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts, goods specified in
column (2) of the Table hereto annexed, and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986),
subject to the conditions, if any, specified in the corresponding entry in column (3) of the said Table, from the whole of -
(i) the duty of excise leviable thereon which is specified in the said Schedule; and
(ii) the additional duty of excise leviable under the second mentioned Act on goods specified against S. No. 1,2,3 and 4 of
the said Table:
Provided that in respect of S. No. 16 of the said Table, nothing contained in this notification shall apply on or after the 1st day of
December, 1999.
Provided further that in respect of S. No. 17 of the said Table, nothing contained in this notification shall apply on or after the 1st
day of July, 2002.
Table
S.No.Description of goods Conditions
(1) (2) (3)
1.All goods
If,-
(i) donated for the welfare of the defence personnel;
(ii) it is certified on the relevant clearance documents, by the producer or
manufacturer, or the owner or keeper of the warehouse in which such goods are
deposited, that the goods are intended to be donated for the above purpose without
discrimination on the grounds of religion, race or caste or any of them and distributed
among or utilised for the welfare of the defence personnel without making any charge
therefor;
(iii) the goods are sent direct from the place of production, factory of manufacture, or,
as the case may be, from the warehouse to the following agencies-
(a) the National Defence Fund;
(b) Citizens" Central Council;
(c) the Ministry of Defence; or
(d) the Government of any State or Union Territory or any authority nominated by such
Government to receive such donations; and
(iv) the producer, manufacturer, owner or keeper of the warehouse produces before
the proper Central Excise Officer within two months of the date of removal of the
goods from the place of production or factory, or, as the case may be, from the
warehouse, or within such extended period as the Commissioner of Central Excise
may in any case, allow, a certificate from any of the above agencies that the goods
have been received by that agency for the purpose for which the donation was made.
2.All goods
If,-
(i) donated to the National Defence Fund or the Ministry of Defence;
(ii) it is certified on the relevant clearance documents, by the producer or
manufacturer of the goods, or the owner or keeper of the ware-house in which such
goods are deposited, that the goods are intended to be donated as above;
(iii) the goods are sent direct from the place of production, factory of manufacture, or,
as the case maybe, from the warehouse to the National Defence Fund or the Ministry
Defence; and
(iv) the producer, manufacturer, owner or keeper produces before the proper Central
Excise Officer within two months of the date of removal of the goods from the place of
production or factory, or, as the case may be, from the warehouse, or within such
extended period as the Commissioner may in any case, allow, a certificate from the
National Defence Fund or the Ministry of Defence that the goods have been received
by them.
3.All goods other than cigarettes
If supplied as stores for consumption on board a vessel of the Indian Navy or Coast
Guard.
4.
Cigarettes falling under heading
No. 24.03
If,-
(i) supplied as stores for consumption on board a vessel of the Indian Navy or Coast
Guard;
(ii) the manufacturer follows such procedure as may be specified in this regard by the
Commissioner of Central Excise having jurisdiction over his factory; and
(iii) the Commanding Officer of the Indian Navy or Coast Guard Ship issues to the
officer-in-charge of the bonded warehouse from where the supply of cigarettes has
been made, a certificate, within a period of six months from the date of supply of
cigarettes onboard the said ship, to the effect that the cigarettes supplied as stores
on board the Indian Navy or Coast Guard Ship have been consumed on board the
said ship.
5.All goods
If,-
(i) supplied to the Project SKYLARK under the Ministry of Defence; and
(ii) before clearance of the goods, a certificate from the Project Director, Project
SKYLARK to the effect that such goods are intended for assembly, erection and
installation of Naval V.L.F. Transmitting Station (Tamil Nadu) under the said Project
SKYLARK, is produced to the proper officer.
6.
Parts of motor vehicles falling
under chapter 45,48/68,73, 85,87
or motor vehicles in completely
knocked down or semi knocked
down form
If,-
(i) used in a Central Government Ordnance Factory for the manufacture of vehicles
falling under Chapter 87 of the said Schedule; and
(ii) such use is elsewhere than in the factory of the production of such parts, the
procedure set out in the Central Excise (Removal of Goods at Concessional Rate of
Duty for Manufacture of Excisable Goods) Rules, 2001, is followed.
7.
Stainless steel sheets, systems
and sub-systems of launch vehicle
and stainless steel sheets,
systems and sub-systems of
satellite Projects
If,-
(i) meant for use in a launch vehicle project or a satellite project of the Indian Space
Research Organization or the Government of India, Department of Space; and
(ii) the manufacturer produces, before the clearances of the said goods, a certificate
from an officer not below the rank of an Assistant Scientific Secretary in the Indian
Space Research Organization giving the description and quantity of each type of the
said goods for which the exemption under this notification is claimed and certifying
that the said goods are intended for use in a project mentioned above.
8.Equipment and stores
If,-
(i) used for the systems and sub-systems of the Integrated Guided Missiles to be
developed under the Integrated Guided Missiles Development Programme of the
Government of India in the Ministry of Defence;
(ii) before clearance of the said goods, a certificate from the Chairman or Member
Secretary of Programme Management Board or the Director of Management
Services, Defence Research and Development Laboratory, in the Ministry of
Defence to the effect that the said goods are intended for the aforesaid use, is
produced to the proper officer.
(iii) * * * *
(iv) the aforesaid use is elsewhere than in the factory of production of the said goods,
the manufacturer produces within five months from the date of clearance or within
such extended period as the [Assistant Commissioner of Central Excise or Deputy
Commissioner of Central Excise] may allow in this regard, a certificate from the said
Chairman or Member Secretary or as the case may be the said Director, indicating
the date of the receipt of the said goods by that organization and certifying that they
have been actually put to the aforesaid use.
9.[Omitted] [Omitted]
10.
Internal combustion engines and
electric storage batteries falling
under Chapter 84 or 85
If/-
(i) such engines are designed for use as prime movers for transport vehicles and
given for that purpose some special shape, size, or quality which would not be
essential for any other purpose; (ii) it is proved to the satisfaction of the officer not
below the rank of Assistant Commissioner of Central Excise that they are intended to
be used as original equipment parts in the manufacture of vehicles falling within
Chapter 87 of the said Schedule, manufactured in a Central Government Ordnance
Factory; and (iii) such use is elsewhere than in the factory of their production, the
procedure set out in the Central Excise (Removal of Goods at Concessional Rate of
Duty for Manufacture of Excisable Goods) Rules, 2001, is followed.
11.[Omitted] [Omitted]
12.
Underwater batteries including
cells of such batteries falling under
heading No. 85.07
If,-
(i) manufactured for use by the Indian Navy; and
(ii) the concerned officer of the Indian Navy or the Directorate of Production and
Inspection (Naval), not below the rank of Commander, furnishes a certificate, before
removal, that the said goods are required for fitment to a submarine vessel including
a Torpedo and Chariot of the Indian Navy and shall be so used.
13.[Omitted] [Omitted]
14.Bullet-proof jackets
If,-
(i) supplied to the Armed Forces of the Union or to the Police Forces of the States or
the Union Territories; and
(ii) before the clearance of the said goods, in each case, an officer not below the
rank of a Joint Secretary in the Ministry of Defence or in the Ministry of Home Affairs,
as the case may be, recommends grant of this exemption indicating the full
description and quantity of the said goods to be supplied to the forces mentioned
above.
15.All goods
If manufactured and consumed within the factory of production of the bullet-proof
jackets for supply to the Armed Forces of the Union or to the Police Forces of the
States or the Union Territories.
16.All goods
If,-
(i) supplied to the Programme SAMYUKTA under the Ministry of Defence; and
(ii) before clearances of the goods, a certificate from the Programme Director,
Programme SAMYUKTA to the effect that such goods are intended for the said
Programme SAMYUKTA, is produced to the proper officer.
17.All goods
If,-
(i) supplied to the Programme SANGRAHA under the Ministry of Defence; and
(ii) before clearances of the goods, a certificate from the Programme Director,
Programme SANGRAHA, Department of Defence Research and Development, to
the effect that such goods are intended for the said Programme SANGRAHA, is
produced to the proper officer.
18.All goods
If,-
(i) supplied to the Programme SAMYUKTA under the Ministry of Defence; and
(ii) before clearances of the goods, a certificate from the Programme Director,
Programme SAMYUKTA to the effect that such goods are intended for the said
Programme SAMYUKTA, is produced to the proper officer.
Explanation .- Nothing contained in this exemption shall have effect on or after the
1st day of December, 2005.
19.
All equipments; stores, systems
and sub-systems; design,
development or construction aids;
computer hardwares and
softwares required for design or
development or construction or
manufacturing activities connected
with the programme, including jigs,
fixtures and tools required for the
programme.
If,-
(i) the order or contract or letter of intent is placed on the manufacturer of the said
goods by Headquarters ATVP or its authorised work centres; and
(ii) before clearance of the said goods, a certificate from the Project Director, ATV
Programme (of the rank of a Rear Admiral or equivalent rank of the Joint Secretary to
the Government of India), to the effect that the said goods are intended for the said
use, is produced to the proper officer."
20.
Pistol 90 mm. Falling under
Chapter 93
If, -
1. (i) manufactured by M/s. Bharat Dynamics Limited, Hyderabad and
supplied to the Police Forces of the States or the Union territories; and
2. (ii) before the clearance of the said goods, an officer not below the rank of a
Joint Secretary in the Ministry of Home Affairs, Government of India
recommends grant of this exemption indicating the full description and quantity
of the said goods to be supplied to the said force.
21.All goods.
If
(a) The said goods are supplied for use in construction of warships of the Indian Navy
or Coast Guard; and
(b) Before clearance of the said goods, a certificate from an officer not below the
rank of a Rear Admiral of the Indian Navy or Coast Guard or Director General of
Coast Guard or any other officer of the Indian Navy or Coast Guard equivalent to the
Joint Secretary to the Government of India, to the effect that the said goods are
intended for the said use, is produced to the proper officer.
22.All goods
If, -
(i) supplied to the Programme DIVYA DRISHTI under the Ministry of Defence; and
(ii) before clearances of the goods, a certificate from the Director, Defence
Electronic Research Laboratory or Chief Managing Director, Electronics Corporation
of India Limited, to the effect that such goods are intended for the said Programme
DIVYA DRISHTI, is produced to the proper officer.
Explanation. - For the purposes of this notification, the expression, -
(i) "underwater battery" means a lead acid battery consisting of cells connected in series or parallel combination to produce
power to submarine vessels including Torpedo and Chariot.
(ii) Armed Forces of the Union includes the Central Reserve Police Force, the Indo Tibetan Border Police Force, the Special
Services Bureau, the Border Security Force, the Central Industrial Security Force, the National Security Guard and the Assam
Rifles, maintained or constituted under the Central Reserve Police Force Act, 1949 (66 of 1949), the Indo Tibetan Border
Police Force Act, 1992 (35 of 1992), the Border Security Force Act, 1968 (47 of 1968), the Central Industrial Security Force
Act, 1968 (50 of 1968), the National Security Guard Act, 1986 (47 of 1986) and the Assam Rifles Act, 1941 (5 of 1941).
Notification No. 64/95-C.E., dated 16-3-1995 as amended by Notifications no. 96/95-C.E., dated 26-5-1995; No. 116/95-
C.E., dated 13-11-1995; No. 1/96-C.E., dated 1-1-1996; No. 7/98-C.E., dated 2-6-1998; No. 4/2000-C.E., dated 21-2-2000
No. 11/2000-C.E., dated 1-3-2000, No. 46/2000-C.E., dated 28-8-2000, Notification No. 49/2000-CE., dated 29-9-2000 , No.
46/2001-C.E., dated 25-9-2001, Notification No.25/2002-C.E. dated 11-4-2002, No. 58/2002-C.E., dated 3-12-2002, No.
16/2003-C.E., dated 1-3-2003, No. 51/2003-C.E., dated 12-6-2003, No. 15/2004-C.E., dated 27-2-2004 and No. 18/2004-
C.E., dated 23-3-2004.
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