Exemption to SAMYUKTA Programme of the Ministry of Defence – another dead notification revived.
But aren’t they already exempted? Please refer to TIOL-DDT 291 - 27 01 2006, wherein we observed,
“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. The exemption is 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?”
The Board has again failed. The notification expired on 1st June 2006 and the Board failed to realize this till 21.8.2006; that is for two months and 20 days. Last time this lapse was only for one month and 23 days. Now this exemption is extended up to 1st day of December 2007.
We again ask the same questions:-
What happens to the clearances/imports from 1st June 2006 to 20th August 2006? Audit Notes, Show Cause Notices and litigation?
Can’t the Board have a simple mechanism to monitor the sun set notifications?”
There should be a similar Central Excise notification, which we could not get for love or money. Hopefully, we will get it tomorrow.
Shall we remind the Board before 1.12.2007 to extend this notification?
NOTIFICATION NO. , Dated: August 21, 2006