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[TO BE PUBLISHED IN PART II, SECTION 3, SUB -SECTION (i) OF THE GAZETTE OF
INDIA (EXTRAORDINARY)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 59/2017-Customs
New Delhi, the 30
th June, 2017
G.S.R. (E).— 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 makes the following further
amendments in the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No. 52/2003 -Customs, dated the 31st March, 2003,
published in the Gazette of India, Extraordinary, vide number G.S.R. 274 (E), dated
the 31st March, 2003 herein after referred to as the said notification , namely:-
2. In the said notification, -
(a) in the opening paragraph, -
(i) for the words “and the additional duty, if any, leviable thereon under section 3
of the said Customs Tariff Act”, the words “ and the additional duty, if any,
leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said
Customs Tariff Act” shall be substituted;
(ii) after condition (2), the following shall be inserted, namely:-
“2A. The unit shall follow the procedure prescribed under rule 5 of the
Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, for
import of goods.”;
(b) for the paragraph 3, the following paragraph shall be substituted, namely:-
“3. Notwithstanding anything contained in this notification, the exemption from
the whole of duty of Customs leviable thereon under First Schedule to the Customs
Tariff Act, 1975 (51 of 1975), shall not apply to inputs which on importation into
India or procurement, are used for the purpose of manufacture of finished goods [
other than falling under Fourth Schedule of Central Excise Act, 1944 (1 of 1944) ] or
services and such finished goods and services, (including by-products, rejects, waste
and scrap arising in the course of production, manufacture, processing or packaging
of such goods ) are supplied in Domestic Tariff Area in accordance with the Foreign
Trade Policy, on payment of applicable Goods and Service Tax leviable thereon, or
are in stock at the time of exit from the scheme in accordance with the Foreign Trade
Policy and in case of waste and scrap within SION or within norms fixed by the
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Norms Committee or norms as approved by the Board of Approval the exemption in
respect of goods imported or procured under this notification would continue to be
admissible:
Provided that, in case such finished goods (including by-products, rejects, waste and
scrap) including those falling under Fourth Schedule of the Central Excise Act, 1944
(1 of 1944) or services are cleared to the warehouse appointed or registered under
notification of the Government of India in the Ministry of Finance (Department of
Revenue) No 26/98-Central Excise (NT) dated the 15
th July, 1998 or No. 46/2001-
Central Excise (NT) dated the 26
th July, 2001 or cleared to the warehouse authorised
to carry out manufacturing process or other operation under section 65 of the
Customs Act, 1962, and under the Manufacture and Other Operations in Warehouse
Regulation or cleared to organisations which are entitled for duty free import of such
goods in terms of the following exemption notifications:-
(i) No. 106/58-Customs dated the 29
th March, 1958;
(ii) No. 152/94-Customs dated the 13
th July, 1994;
(iii) No. 39/96-Customs dated the 23
rd July, 1996;
(iv) No. 50/96-Customs dated 23
rd July, 1996;
(v) No. 84/97-Customs dated the 11
th November, 1997;
issued by Ministry of Finance in pursuance to clause (e) of paragraph 6.9 of the
Foreign Trade Policy, without payment of duty, the exemption in respect of goods
imported or procured under this notification would continue to be admissible:
Provided further that where finished goods (including rejects, waste, scrap,
remants and by-products) are either non excisable or such finished goods (including
rejects, waste, scrap, remants and by -products) other than goods falling under
heading/tariff item 8901, 8902 0010, 8905 10 00 or 8906 if imported, are leviable to
nil rate of duty of customs specified under First Schedule to the Customs Tariff Act,
1975 and nil additional duty leviable under section 3 of the said Customs Tariff Act,
read with exemption notification in this regard, if any, no exemption in respect of
inputs utilised for the purpose of manufacture of such finished goods (including
rejects, waste, scrap, remnants and by -products) shall be available under this
notification:
Provided also that the Software Technology Park (STP) unit and the Electronic
Hardware Technology Park (EHTP) unit engaged in manufacture of electronic hardware
and software in integrated manner, shall be allowed to sell software, data entry and
conversion, data processing, data analysis, control data management or rendering of
call centre services through data communication link and or tele-communication link
subject to such conditions as may be specified by Commissioner of Customs:
Provided also that goods, which have been repaired, reconditioned, re-engineered shall
not be allowed to be sold in the Domestic Tariff Area.
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Explanation.- For the purpose of this paragraph, on payment of whole of duty of
Customs leviable thereon under the First Schedule to the Customs Tariff Act 1975
availed as exemption, under this notification, on the inputs utilised for the purpose
of manufacture of finished goods [ other than falling under Fourth Schedule of
Central Excise Act, 1944 (1 of 1944) ] before clearance of such finished goods
(including by-products, rejects, waste and scrap arising in the course of production,
manufacture, processing or packaging of such goods) or services on payment of
applicable, Goods and Service Tax leviable thereon, in Domestic Tariff Area or as are
in stock at the time of exit, it shall be treated as if no exemption was availed under
this notification”;
(c) after paragraph 11A, the following paragraph shall be inserted, namely:-
“11B. In the notification, the word “duty” wherever appear shall mean duties
of customs as specified in First Schedule to the Customs Tariff Act, 1975 and the
additional duty, if any, leviable thereon under sub-sections (1), (3) and (5) of section 3
of the said Act or applicable excise duty, as the case may be, for the purpose of this
notification”.
3. This notification shall come into force with effect from the 1st July-2017.
[F.No.DGEP/SEZ/09/2017 ]
(Dharmvir Sharma)
Under Secretary to the Government of India
Note. - The principal notification No. 52/2003-Customs, dated the 31
st March, 2003
was published in the Gazette of India, Extraordinary, vide number G.S.R. 274 (E),
dated the 31st March, 2003 and last amended by notification No. 44/2016-Customs,
dated the 29
th July, 2016 published vide S.O. 2566 (E), dated the 29
th July, 2016.
