Exemption to SAMYUKTA Programme of the Ministry of Defence – another dead notification revived
As per Notification No. 64/95 Central Excise, DATED : March 16, 1995, ( Sl No. 18 of the table) goods supplied to the Programme SAMYUKTA under the Ministry of Defence are exempted from excise duty.
Similarly Machinery, equipment, instruments, components, spares, jigs and fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the purpose of SAMYUKTA Programme of the Ministry of Defence, when imported are exempted from Customs duties as per NOTIFICATION NO. 39/1996-Customs, DATED : July 23, 1996 (Sl. No. 17 of the table)
However there is a small problem. Both these exemptions were valid only till 1st December 2005. And our good Board as usual forgot about this notification. And so they went into history on 1st December 2005, but defence projects cannot simply go into oblivion. The Board obviously realised this a little late and now the validity of these notifications are extended up to 1st June 2006.
What happens to the clearances/imports from 1st December 2005 to 24th January 2006? Audit Notes, Show Cause Notices and litigation? One such case actually went right up to the Supreme Court.
Can’t the Board have a simple mechanism to monitor the sun set notifications?
NOTIFICATION NO. , Dated: January 24, 2006 and NOTIFICATION NO. , Dated: January 24, 2006