Exemption to goods designed and developed by public funded research institutions, national laboratories and universities and manufactured by an Indian company
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts all goods of the description specified in the Annexure appended to this notification (hereinafter referred to as the specified goods) from -
(a) the whole of the duty of excise specified thereon under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);
(b) the whole of the special duty of excise specified thereon under the Second Schedule to the said Central Excise Tariff Act;
(c) the whole of the additional duty of excise specified thereon under the Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act,
subject to the following conditions, namely :-
(i) the specified goods are designed and developed by an Indian owned company, national laboratory, public funded research institution, or university;
(ii) the specific goods which are so designed and developed are patented by such Indian owned company, national laboratory, public funded research institution, or university, in any two countries from amongst India, United States of America, Japan and any one country of the European Union;
(iii) the specified goods are manufactured by a wholly Indian owned company;
(iv) the manufacturer produces a certificate from the Department of Scientific and Industrial Research to the effect that the specified goods are designed and developed by a wholly Indian owned company, national laboratory, public funded research institution, or university and are patented in any two countries from amongst India, United States of America, Japan and any one country of the European Union;
(v) the procedure as prescribed by the jurisdictional Commissioner of Central Excise is followed;
(vi) the exemption contained in this notification shall not apply to the goods which are cleared on or after a period of three years from the date of issue of the certificate by the Department of Scientific and Industrial Research referred to in condition (d)2 above.
Explanation. - For the purposes of this notification,-
(a) “national laboratory” means a scientific laboratory functioning at the national level under the aegis of the Indian Council of Agricultural Research, the Indian Council of Medical Research, the Council of Scientific and Industrial Research, the Defence Research and Development Organisation, the Department of Electronics, the Department of Bio Technology or the Department of Atomic Energy;
(b) “public funded research institution” means a research institution in the case of which not less than fifty per cent of the recurring expenditure is met by the Central Government or the Government of any State or the Administration of any Union Territory;
(c) “university” means a university established or incorporated by or under a Central, State or Provincial Act and includes -
(i) an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956) to be a deemed university for the purposes of that Act;
(ii) an institution declared by Parliament by law to be an institution of national importance.
(iii) a college maintained by, or affiliated to, a university.
ANNEXURE
All goods specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) other than the following, namely:-
(i) tobacco and tobacco preparations;
(ii) pan masala;
(iii) arms and ammunition;
(iv) narcotic drugs and psychotropic substances, as defined in clause (xiv) and clause (xxiii) respectively of section 2 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985) other than those used for pharmaceutical purposes.