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 woke up and issued a notification in February 2012 inserting another Sl. No. 30 in Notification No. 64/95-Central Excise, with identical words and this new exemption was valid till 25th May 2012. As usual on (or before and after) 25th May 2012, they were sleeping.
They woke up again last week and issued a Notification inserting another Sl. No. 31 in Notification No. 64/95-Central Excise, with identical words and this new exemption is valid till 25th November 2012. We can be sure it will not be extended before 25th November 2012.
Now, the position is that in the table to the Notification No. 64/95-Central Excise, dated the 16th March 1995, there are four Sl. Numbers 25, 29, 30 and 31giving the same exemption and there was no exemption during the period, 01.06.2011 to 18.07.2011, 26.11.2011 to 08.02.2012 and 26.05.2012 to 17.10.2012.
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, 38 and 39 of the table.
Was there no public interest in giving these exemptions during these drowsy periods? Maybe the Defence Ministry should remind the Revenue Department, at least a month before expiry of these notifications.
This issue has already reached the Tribunal and at least in two cases, Tribunal had granted stay.
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The Board should seriously consider job work for its notification manufacturing activity.
Notification No. , Dated: October 18, 2012 and Notification No. , Dated: October 18, 2012