Customs - LNG imported for Generation of Electricity - Time limit to produce certificate extended
AS per Sl. No. 139A of the Table to the Notification No. 12/2012-Cus, dated 17.03.2012,
Liquefied Natural Gas (LNG) and natural gas when imported for supply to a generating company as defined in section 2(28) of the Electricity Act, 2003 to supply electrical energy or to engage in the business of supplying electrical energy, for generation of electrical energy, is wholly exempted from Customs duty, though the exemption shall not be available if such liquefied natural gas (LNG) and natural gas (NG), is used for generation of electrical energy by captive generating plant as defined in section 2(8) of the Electricity Act, 2003.
This exemption is subject to the conditions that:
1. the importer furnishes security by way of bank guarantee of an amount equal to the difference between the duty leviable on such goods but for the exemption contained therein and the duty levied at the time of import, to the Deputy Commissioner or the Assistant Commissioner of Customs, as the case may be;
2. the importer produces a certificate from the jurisdictional Deputy Commissioner or the Assistant Commissioner of Central Excise, as the case may be, of the generating company within a period of six months from the date of import, or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow, to the effect that the said Liquefied natural gas (LNG) and natural gas (NG) so imported and supplied has been utilised for generating and supplying electrical energy by the said generating company;
3. the importer furnishes an undertaking to pay, on demand, in the event of his failure to comply with any of the aforesaid conditions, an amount equal to the difference between the duty leviable on such goods but for the exemption contained therein and the duty levied at the time of import, along with the applicable interest thereon.
Now, this notification is amended to change the period of six months to a period of twelve months.
Notification NO. , Dated: October 20, 2014