Exemption from Customs Duty and Sales Tax on Import of Plant and Machinery for Initial Installation

EXEMPTION FROM CUSTOMS DUTY AND SALES TAX ON IMPORT OF PLANT AND MACHINERY FOR INITIAL INSTALLATION OF APPROVED PROJECTS FOR MANUFACTURE OF CERTAIN ARTICLES 18Notification No. S.R.O. 507(I)/85, dated 23rd May, 1985.--In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (1) and (2) of section 7 of the Sales Tax Act, 1951 (III of 1951), the Federal Government is pleased to direct that the plant and machinery which is not manufactured locally, if imported for initial installation, of the projects approved by the Government for the basic manufacture of articles specified in table below, shall be exempt from the whole of Customs-duty and sales tax chargeable thereon subject to the following conditions, namely:- the manufacturer shall furnish to the Chief, Survey and Rebate or any other officer authorised by the Central Board of Revenue in this behalf in the prescribed form, detail of plant and machinery that he is importing or intends to import; the manufacturer shall observe deletion programme spreading over a maximum period of three years within which period, he shall achieve a minimum deletion to the extent of 75% of the C&F value of the inputs of the inputs of the manufactured item, and the availability of the exemption under this Notification shall be contingent upon the achievement of progressive annual deletion as approved by the Central Board of Revenue or any other Government agency at the time of sanctioning of the project provided that it will not be less than the deletion mentioned above; the manufacturer shall, at the time of import of plant and machinery , furnish an Insurance Guarantee to the Collector of Customs equal to the duty and taxes leviable on such plant and machinery, binding himself to abide by the conditions laid down in this Notification failing which he will pay the amount of customs-duties and sales tax exempted under this Notification and make payment of any penalties that may be imposed by the said collector in this behalf; the said Insurance Guarantee will be discharged on production of installation certificate in the form set out below, issued by an officer not below the rank of Assistant Collector of Central Excise and Land Customs, in whose jurisdiction the manufacturing unit is located; the certificate of installation referred to in condition (iv) above shall be submitted to the Collector of Customs not later than one year from the date of import of such plant and machinery. TABLE S. NO. | Articles to be manufactured by the units 1 | Compressors for air-conditioners, refrigerators and deep-freezers. 2 | Thermostatic or other controls for industrial and domestic electrical appliances. 3 | T.V. picture tubes. 4 | V.C.R. and tape recorder heads. 5 | Precision motors for industrial and domestic electrical appliances. FORM Certificate No. _______________ dated ________________________________ I ________ ___(Name of the Officer) ________________am satisfied that the plant and machinery imported by Messrs ______(Name of the Company) ______________under provisions of SRO ______________ vide bill of entry No ._______________ dated the _________________have been installed and is in production of the articles for which it was imported. Stamp and Signature *** 18. Reported as PTCL 1985 St. 799(ii).