Customs and Excise Duty Exemption on Machinery for LRSAM – Another messed up Notification
MACHINERY, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence, were first exempted from excise duty by Notification No. 30/2007 –Cx dated 10.07.2007, by inserting a new Sl. No. 25 to the table in Notification No. 64/95-Central Excise, dated the 16th March, 1995. This was valid only till 31st May 2011.
As usual, the babus forgot all about this notification lapsing in May 2011. They woke up a little later and reintroduced this exemption by Notification No. 34/2011 – Central Excise, dated 19th July 2011 by inserting another Sl. No. 29 in the table to Notification No. 64/95-Central Excise, dated the 16th March 1995. And this was valid till 25th day of November 2011. Again, in November 2011, the experts in the Board forgot about this notification and they just woke up and issued a notification last week inserting another Sl. No. 30 in Notification No. 64/95-Central Excise, with identical words and this new exemption is valid till 25th May 2012. We can be sure it will not be extended before 25th May 2012.
Now, the position is that in the table to the Notification No. 64/95-Central Excise, dated the 16th March 1995, there are three Sl Numbers 25, 29 and 30 giving the same exemption and there was no exemption during the period, 01.06.2011 to 18.07.2011 and 26.11.2011 to 08.02.2012.
Of course, there is consistency. The Customs Notification No. 39/1996 dated 23.7.1996 has been similarly messed up and now has the same exemption in Sl. Nos 32, 35 and 38 of the table.
The Board should seriously consider job work for its notification manufacturing activity.
Notification No. , Dated: February 09, 2012 and Notification No. , Dated: February 09, 2012