This notification exempts goods used by a unit in a special economic zone from from Central Excise duty

and Additional duty.

19
th
October, !!!.
Notification No. 52 /2000-Central Excise

".#.$. %!&'E(. ) *n exercise of the po+ers conferred by sub,section '1( of section -A of the Central
Excise Act, 19.., '1 of 19..(, read +ith sub,section '&( of section & of Additional /uties of Excise '"oods
of #pecial *mportance( Act, 19-0 '-% of 19-0(, the Central "o1ernment, being satisfied that it is
necessary in the public interest so to do and in supersession of the notification of the "o1ernment of *ndia
in the 2inistry of 3inance '/epartment of $e1enue( 4o. .15!!!,CE, dated the 6
th
2ay, !!! 7 ".#.$
-!! 'E(, dated the 6
th
2ay, !!!8, except as respects things done or omitted to be done before such
supersession, hereby exempts excisable goods 'hereinafter referred to as the said goods( specified in the
#chedule to the Central Excise Tariff Act,19%- '- of 19%6(, +hen brought by a unit ' hereinafter referred to
as the said unit( located in #pecial Economic 9one as notified by the "o1ernment of *ndia in the 2inistry
of Commerce and *ndustry ' hereinafter referred to as the 9one( from factory of manufacture or
+arehouse situated in other parts of *ndia, for the purposes of manufacture of goods, ser1ices,
production, processing, assembling, trading, repair, reconditioning, re,engineering, pac:aging or in
connection there+ith and export thereof ' hereinafter referred to as the said purpose ( from the +hole of
the duty of excise le1iable thereon under section & of the said Central Excise Act, and the additional duty
of excise le1iable thereon under section & of the said Additional /uties of Excise '"oods of #pecial
*mportance( Act, sub;ect to the follo+ing conditions, namely<,
1. The said unit has been authorised by the /e1elopment Commissioner to establish the unit in the
9one for the said purpose.
. The said goods are brought directly into the unit from the factory of manufacture or +arehouse.
&. The said unit executes a bond in the form specified by the Assistant Commissioner of Central
Excise or Customs or /eputy Commissioner of Central Excise or Customs, binding itself )
i. to bring the said goods into the said unit in the 9one and to use them for the said purpose=
to dispose of the said goods or the ser1ices, articles produced, manufactured, processed and pac:aged
in the said unit in the 9one or the +aste, scrap and remnants arising out of such production, manufacture,
processing or pac:aging in the manner as pro1ided in the Export and *mport >olicy and in this notification=
to achie1e positi1e 43E> ' 4et 3oreign Exchange Earning as a >ercentage of Exports( as pro1ided in
paragraph 9.& of the Export and *mport >olicy read +ith the pro1isions of ?andboo: of >rocedure, @ol. *
and to comply +ith the conditions stipulated in this notification, the rele1ant pro1isions of Export and
*mport >olicy and the rele1ant pro1isions of ?andboo: of >rocedures, @ol. * and to pay on demand=,

'a( in case of failure to achie1e the said positi1e 43E> the duty eAual in amount to the portion of the duty
le1iable on the said goods but for the exemption contained in this notification and the duty so payable
shall bear the same proportion as the unachie1ed portion of 43E> bears to the positi1e 4E3> to be
achie1ed along +ith interest at the rate of .B per annum on the said duty to be paid on demand from the
date of procurement of the said goods till the payment of such duty.

'b( in case of failure to utilise the said goods for the said purpose +ithin the period of fi1e years, an
amount eAual to the duty as le1iable on the said unutilized goods along +ith interest at the rate of .B
per annum on the said duty from the date of importation or procurement of the said unutilized goods till
the payment of such duty.
1. The said unit shall maintain proper account, in format con1enient to it and financial year,+ise, of
all foreign exchange inflo+ by +ay of exports and other receipts, all foreign exchange outflo+ on
account of imports, payment of di1idend, royalty, fees, similar other accounts, consumption,
utilisation of the said goods and sale of goods produced, manufactured, processed, pac:aged
and ser1ices rendered including +aste, scrap and remnants arising out of such production,
manufacture, processing or pac:aging in the /omestic Tariff Area and shall submit regularly
Auarterly statement and monthly statement in case of gem and ;e+ellery to the Assistant
Commissioner of Central Excise or Customs or /eputy Commissioner of Central Excise or
Customs in the proforma prescribed in Appendix 16? of the ?andboo: of >rocedures, @ol.*.
. The unit follo+s the procedure contained in Chapter C of the Central Excise $ules, 19..
'hereinafter referred to as the said rules( +ith the modification that certificate in form CT,&
annexed to this notification as Annexure,* shall be used by the Central Excise Officer in,charge of
the unit in place of a certificate in form CT, pro1ided in the said rules.
&. The Assistant Commissioner of Central Excise or Customs or /eputy Commissioner of Central
Excise or Customs may, sub;ect to such conditions and limitations as may be imposed by him
and sub;ect to the pro1isions of the Export and *mport >olicy )
permit the said goods or goods manufactured, produced, processed, partially processed or pac:aged in
the said unit to be ta:en to any other unit in another #pecial Economic 9one or to Export Oriented
Dnderta:ing or Export >rocessing 9one or #oft+are Technology >ar: or Electronics ?ard+are Technology
>ar: units temporarily +ithout payment of duty ,
a. for repairs, processing, testing or display and to be returned to the said unit thereafter, or
b. for the purposes of manufacture and export therefrom, sub;ect to maintenance of proper
accounts by both the recei1ing and supplying units<
permit the said goods or partially processed or pac:aged in the said unit to be ta:en outside the 9one
+ithout payment of duty for the purpose of test, repairs, replacement, calibration, refining, processing,
display, ;ob,+or: or any other process necessary for manufacture of final product and to be returned to
the unit thereafter or remo1e the same +ithout payment of duty under bond for export from ;ob,+or:erEs
premises<

>ro1ided that in case of export from the ;ob,+or:erEs premises, such ;ob,+or:er shall be Central Excise
registrant under rule 10. of the said rules<

>ro1ided further that +aste or scrap or remnants generated during such process at the ;ob,+or:erEs
premises shall be either returned to the unit in the 9one or shall be cleared on payment of duty as if the
said +aste or scrap or remnants ha1e been procured by the said unit=
permit remo1al of moulds, ;igs, tool, fixtures, tac:les, instruments, hangers, patterns, dra+ings +ithout
payment of duty to the premises of the sub,contractors sub;ect to the condition that the such goods shall
be brought bac: to the said unit on completion of the ;ob+or: +ithin the stipulated period as specified by
the Assistant Commissioner of Customs or Central Excise or /eputy Commissioner of Customs or
Central Excise<

>ro1ided that this condition shall not apply to the said unit if such unit is engaged in gem and ;e+ellery.

'0( The Assistant Commissioner of Central Excise or Customs or /eputy Commissioner of Central Excise
or Customs may, sub;ect to such conditions and limitations as may be imposed by him and sub;ect to the
pro1isions of Export and *mport >olicy, permit the said unit engaged in gem and ;e+ellery in the 9one )
i. to ta:e out gold, sil1er or platinum for ;ob,+or: in the /omestic Tariff Area and to bring bac: the
;e+ellery finished or semi,finished , including studded ;e+ellery containing Auantity and purity
eAual to the gold, sil1er , platinum ta:en out +ithin the period of thirty days from the date of such
ta:ing out <
>ro1ided that no diamonds, precious stones or semi,precious stones shall be allo+ed to be ta:en
out.
ii. to recei1e plain gold or plain sil1er or plain platinum ;e+ellery from any place in *ndia against
exchange of gold or sil1er or platinum of the same purity and Auantity in +eight as that of the said
gold or sil1er or platinum ;e+ellery, as the case may be<
>ro1ided that in case of acti1ities mentioned at 'i( and 'ii( abo1e in this condition, the /omestic Tariff Area
unit supplying such ;e+ellery against exchange of gold or sil1er or platinum or after ;ob+or: shall not be
entitled for deemed export benefits and the said unit in the 9one shall not be eligible for +astage or
manufacturing loss against such ;e+ellery=
'iii( to ta:e out items of gem and ;e+ellery temporarily into /omestic Tariff Area +ithout payment of duty
for the purpose of display and to be returned thereafter=
'i1( for personal carriage of gold Fe+ellery or sil1er ;e+ellery or platinum ;e+ellery or precious stones or
semi,precious stones or beads and articles as samples upto D#G 1,!!,!!!5, for export promotion tours
and temporary display or sale abroad sub;ect to the condition that the exporter +ould bring bac: such
;e+ellery, precious stones or semi,precious stones or beads and articles or the sale proceeds +ithin a
period of forty,fi1e days from the date of departure through normal ban:ing channel=
'1( to export Fe+ellery including branded ;e+ellery for display and sale in the permitted shops set up
abroad, or in the sho+room of its distributors or agents<
>ro1ided that items not sold abroad +ithin a period of one hundred eighty days from the date of their
export shall be re,imported +ithin a period of forty,fi1e days from the expiry of such period from the date
of expiry=
1i. to remo1e parts and tools of machines temporarily into /omestic Tariff Area +ithout payment of
duty for the purpose of repairs and return thereof after such repairs.
1ii. to remo1e moulds, tools, patterns and dra+ing to the premises of the sub,contractors for ;ob+or:
+ithout payment of duty and to be returned to the unit thereafter +ithin the period specified in this
behalf by the Assistant Commissioner or /eputy Commissioner of Central Excise or Customs as
the case may be=
'1iii( to send scrap, dust or s+eepings of gold arising in the manufacturing process in itEs unit to the
"o1ernment 2int or >ri1ate 2int for con1ersion into standard gold bars and to be returned to the said unit
thereafter or to clear such scrap, dust or s+eeping to the /omestic Tariff Area on payment of duty on the
gold content in the said scrap, dust or s+eepings.
'%( #ub;ect to the satisfaction of the Assistant Commissioner of Central Excise or Customs or /eputy
Commissioner of Central Excise or Customs, duty shall not be le1iable in respect of )

the said goods ' including capital goods ( or goods manufactured, processed or pac:aged in the said unit,
if such goods are destroyed +ithin the 9one or outside the 9one, +hen it is not possible or permissible to
destroy the same +ithin the 9one.
the scrap or +aste material or remnants arising in the course of such production, manufacture, processing
or pac:aging, if such scrap or +aste material or remnants are destroyed +ithin the 9one or destroyed
outside the 9one +hen it is not possible to destroy the same +ithin the 9one<

>ro1ided that this condition shall not apply in the case of gold, sil1er, platinum, diamonds, precious stones
and semi,precious stones.

. 4ot+ithstanding anything contained in paragraph 1, in a case +here the said unit is engaged in the
de1elopment of soft+are, the exemption contained therein shall also apply to goods procured by such
units for training and for de1elopment and testing of soft+are for export and for pro1iding consultancy
ser1ices for de1elopment of soft+are Hon siteH abroad.
>ro1ided that the conditions stipulated in this notification are complied +ith by the said unit engaged in the
de1elopment of soft+are= and
Explanation. - The consultancy fees recei1ed by the said unit in con1ertible foreign currency for
consultancy ser1ices for de1elopment of soft+are on site abroad shall be deemed to be exports for the
purpose of fulfilment of the said positi1e 43E> under this notification.
&. 4ot+ithstanding anything contained in this notification, the said unit 'other than a trading unit(, shall be
allo+ed to clear in accordance +ith the Export and *mport >olicy, the finished goods including by,products
and ser1ices, manufactured or produced out of the said goods 'including re;ects, +aste, scrap and
remnants arising in the course of production, manufacture, processing or pac:aging of such articles and
re,usable containers, cones, bobbins( into /omestic Tariff Area on payment of duty<
>ro1ided that +here such finished goods 'including re;ects, +aste, scrap and remnants( are not excisable,
excise duty eAual in amount to that le1iable on the inputs obtained under this notification and used for the
purpose of manufacture of such finished goods, +hich +ould ha1e been paid but for the exemption under
this notification, shall be payable at the time of clearance of such finished goods<
>ro1ided further that the ser1ices shall be allo+ed to be rendered by the said unit in the /omestic Tariff
Area sub;ect to achie1ement of positi1e 43E> as stipulated in the Export and *mport >olicy.
.. 4ot+ithstanding anything contained in this notification, the said unit engaged in trading shall be allo+ed
to clear the said goods in the /omestic Tariff Area +ithout payment of duty, if such clearance is against
Ad1ance Iicense or special duty free entitlement as per the pro1isions of the Export and *mport >olicy or
to other #pecial Economic 9one or Export Oriented Dnderta:ing or Export >rocessing 9one or Electronic
?ard+are Technology >ar: or #oft+are Technology >ar: units.
-. Jithout pre;udice to any other pro1isions contained in this notification, the Assistant Commissioner of
Central Excise or Customs or /eputy Commissioner of Central Excise or Customs may, sub;ect to such
conditions and limitations as he may deem fit to impose under the circumstances of the case for the
proper safeguard of re1enue interest and also sub;ect to such permission of the /e1elopment
Commissioner of the 9one, +here1er it is specially reAuired under the Export and *mport >olicy, allo+ said
unit in the 9one to clear any of the said goods for being ta:en outside the 9one, to any other place in
*ndia in accordance +ith the Export and *mport >olicy<
>ro1ided that ,
a. such clearance of capital goods, may be allo+ed on payment of duty on the depreciated
1alue thereof and at the rate in force on the date of payment of such duty=
Explanation .- The depreciation shall be allo+ed for the period from the date of
commencement of commercial production of the said unit or +here such goods ha1e
been recei1ed after such commencement, from the date such goods ha1e come into use
for commercial production to the date of payment of duty=
b. such clearance of goods'including empty cones, bobbins, co ntainers, suitable for
repeated use( other than those specified in clause 'a( may be allo+ed on payment of
duty on the 1alue at the time of procurement and at the rate in force on the date of
payment of such duty=
c. such clearance of used pac:ing materials, such as cardboard boxes, polyethylene bags
of a :ind unsuitable for repeated use +ithout payment of any duty.
Explanation., 3or the purpose of this notification ,
'a( HExport and *mport >olicy H means the Export and *mport >olicy, 1990, !!, published by the
"o1ernment of *ndia in the 2inistry of Commerce, 1ide notification 4o.1'$E,99(51990,!!, dated &1
st

2arch, !!!, as amended from time to time=
'b( HExport Oriented DnitH means a ?undred >ercent Export Oriented Dnit as appro1ed by the Koard of
Appro1als appointed by the notification of the "o1ernment of *ndia in the 2inistry of *ndustry, /epartment
of *ndustrial >olicy and >romotion or the /e1elopment Commissioner concerned=
'c( HExport >rocessing 9oneH means the Export >rocessing 9one as notified by the notification of the
"o1ernment of *ndia in the 2inistry of 3inance '/epartment of $e1enue( under section & of the Central
Excise Act, 19.. ' 1 of 19..(=
'd( H Electronic ?ard+are Technology >ar: 'E?T>( unit H means a unit established under and in
accordance +ith the Electronic ?ard+are Technology >ar: ' E?T>( #cheme notified by the "o1ernment
of *ndia in the 2inistry of Commerce, 1ide notification 4o. -' $E,9-(5 9,90 , dated &!
th
April, 199- and
appro1ed by the *nter,2inisterial #tanding Committee appointed by notification of the "o1ernment of *ndia
in the 2inistry of *ndustry '/epartment of *ndustrial /e1elopment(, 4o. #.O. 110'E(, dated the
nd

3ebruary, 199&=
'e( H?andboo: of >rocedures, @ol. *H means the ?andboo: of >rocedures, @ol. *, 1990, !! published by
the "o1ernment of *ndia, 2inistry of Commerce 1ide >ublic 4otice 4o. '$E,!!!(5 1990,!! dated the
&1
st
2arch, !!!=
'f( H#pecial Economic 9oneH means the #pecial Economic 9one as notified by the "o1ernment of *ndia in
the 2inistry of Commerce and *ndustry =
'g( H #oft+are Technology >ar:s '#T>( DnitH means a unit established under and in accordance +ith
#oft+are Technology >ar:s'#T>( #cheme notified by the "o1ernment of *ndia in the 2inistry of
Commerce 1ide notification 4o. . '$E,9-( 5 9,9-, dated &!
th
April, 199- and appro1ed by the *nter,
2inisterial #tanding Committee appointed by the notification of the "o1ernment of *ndia in the 2inistry of
*ndustry, /epartment of *ndustrial /e1elopment, 4o. #.O. 110'E(, dated the
nd
3ebruary, 199&.
ANNEXURE-I

4o.,,,,,,,,,,,,,,, /ate,,,,,,,,,,,,,
FORM C.T.

Certificate for re!o"al of excisa#le $oo%s &n%er #on%
This is to certify that<
1. 2r.52essrs,,,,,,,,,,,,,,,,,,,,,,,,'4ame and address( is5are bona fide licensee holding
licence 4o.,,,,,,,,,,,,,,, 1alid upto ,,,,,,,,,,,,,,,,,,,,,
. That he5they has5ha1e executed a bond '"eneral #urety5"eneral #ecurity.
4o.,,,,,,,,,,,,,,,,,,,,, date,,,,,,,,,,,,,,,,,,,, for $s.,,,,,,,,,,,,,,,,,+ith the Assistant
Commissioner5 /eputy Commissioner of Custom or Central Excise ,,,,,,,,,,,,,,,,,,,,,, and
as such may be permitted to remo1e ,,,,,,,,,,,,,,,,,,,,,,,'Auantity( of ,,,,,,,,,,,,,,,,,,
'excisable goods( from the unit at ,,,,,,,,,,,,,,,,,,,,,,,,,,, to their underta:ing ,,,,,,,,,,,,,,
at,,,,,,,,,,,,,,,,,,,,,,,,,,
&. that the specimen signatures of his5their authorised agent namely #hri ,,,,,,,,,,,,,,,are
furnished herebelo+ duly attested=
#pecimen #ignature #d5, Central Excise Officer, *n,charge of
O+ner or his authorised Agent Attested the unit in #pecial Economic 9one

'$AFE4/$A #*4"? (
D4/E$ #EC$ETA$L TO T?E "O@E$42E4T O3 *4/*A

F.NO. 05/''/2000-FTT