CBEC vide Notification No. 44/2015-Central Excise 24-11-2015 seeks to further amend notification No. 12/2012-CE dated 17.3.2012 so as to provide exemption from excise duty on all raw material and parts for use in manufacture of certain specified ships/vessels subject to actual user condition and also removing the requirement of manufacturing of ships/vessels in a custom bonded warehouse under the provisions of Section 65 of the Customs Act, 1962 for availing duty benefits.

It is notified that no Excise Duty on Raw materials parts for use Ships Boats etc in Chapter 89 of Excise Tariff Act 1985. As per this notification Raw materials and parts, for use in the manufacture of goods falling under heading/tariff item 8901, 8902, 8904 00 00, 8905 (except tariff item 8905 20 00) or 8906 is now on or after 24-11-2015 shall be charged at NIL rate of Duty. The details of headings used in such exemption notification:

Sub Heading Code Sub Heading Description
8901 CRUISE SHIPS, EXCURSION BOATS , FERRY-BOATS, CARGO SHIPS, BARGES AND SIMILAR VESSELS FOR THE TRANSPORT OF PERSONS OR GOODS
8902 FISHING VESSELS; FACTORY SHIPS AND OTHER VESSELS FOR PROCESSING OR PRESERVING FISHERY PRODUCTS
8904 00 00 TUGS AND PUSHER CRAFT
8905 LIGHT-VESSELS, FIRE-FLOATS, DREDGERS, FLOATING CRANES, AND OTHER VESSELS THE NAVIGABILITY OF WHICH IS SUBSIDIARY TO THEIR MAIN FUNCTION; FLOATING DOCKS; FLOATING OR SUBMERSIBLE DRILLING OR PRODUCTION PLATFORMS
8906 OTHER VESSELS, INCLUDING WARSHIPS AND LIFEBOATS OTHER THAN ROWING BOATS

 

The complete Notification No. 44/2015-Central Excise 24-11-2015 is as under:

 

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION

No.  44/2015-Central Excise 

New Delhi, the 24th November, 2015

G.S.R.     (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on 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. 12/2012-Central Excise, dated the 17thMarch, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 163(E), dated the 17thMarch, 2012, namely:-

In the said notification, in the Table,- 

(i)         in serial number 306B, in column (3), the following Explanation shall be inserted, namely:-

            “Explanation.- Nothing contained in this exemption shall have effect on or after the 24th day of November, 2015.”; 

(ii)        after serial number 306B and the entries relating thereto, the following serial number and the entries shall be inserted, namely:-       

 

306C Any Chapter Raw materials and parts, for use in the manufacture of goods falling under heading/tariff item 8901, 8902, 8904 00 00, 8905 (except tariff item 8905 20 00) or 8906
Explanation.- For the purposes of this entry, it is clarified that in the case of  steel already procured under Sl.No.306B above and lying unutilized,-i.        the unit will furnish a separate bond to the jurisdictional Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, giving details of such  goods and also undertake to utilize the same for manufacture of goods falling under heading/tariff item 8901, 8902, 8904 00 00, 8905 (except tariff item 8905 20 00) or 8906; andii.        in the event of failure to use such  goods for the specified purpose, the unit shall pay on demand, an amount equal to the duty payable on such  goods but for the exemption under this notification.		 Nil 2 and 3”.

[F.No. 354/166/2014-TRU] 

(K. Kalimuthu)

Under Secretary to the Government of India 

Note.- The principal notification No. 12/2012-Central Excise, dated the 17th March, 2012, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 163(E), dated the 17th March, 2012 and last amended vide notification No. 43/2015-Central Excise, dated the 6th November, 2015, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),  vide number G.S.R. 844(E), dated the 6th November, 2015.

Source: http://www.cbec.gov.in#