Customs - Exemption for Mega Power Projects - Bank Guarantee Accepted
GOODS required for setting up mega power projects are exempted from Customs duty vide Sl. No. 507 of the Table in Notification No. 12/2012-Cus dated 17.03.2012. Similarly, there is a concessional rate of duty for goods required for expansion of existing mega power projects.
One of the conditions for availing this exemption is:
In case of imports for a project for which certificate regarding Mega Power Project status issued by an officer not below the rank of Joint Secretary to the Government of India in the Ministry of Power is provisional, the importer furnishes a security in the form of a Fixed deposit Receipt from any Scheduled Bank for a term of thirty six months or more in the name of the President of India for an amount equal to the duty of customs payable on such imports but for this exemption, to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, at the time of importation and if the importer fails to furnish the final mega power status certificate within a period of thirty six months from the date of importation, the said security shall be appropriated towards duty of customs payable on such imports but for this exemption .
Now, Bank Guarantee will also be accepted instead of Fixed Deposit.
Notification No. , Dated: June 27, 2012