Exemption to goods manufactured by specified units/institutions for use by Government Department or Defence purposes

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt 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, goods specified in column (2) of the Table hereto annexed, and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), subject to the conditions, if any, specified in the corresponding entry in column (3) of the said Table, from the whole of -

(i) The duty of excise leviable thereon which is specified in the said Schedule; and

(ii) The additional duty of excise leviable under the second mentioned Act on goods specified against S. No.1 of the said Table :

Provided that nothing contained in this notification shall apply to goods specified against S. No. 16 of the said Table on or after the 1st day of April, 2000.


S.No. Description of goods Conditions
(1) (2) (3)
1. All goods If manufactured in a prison.
2. ***** *****
3. All goods If, - (i) manufactured in a shipyard; (ii) intended for use in the manufacture or repair of goods falling under heading Nos. 89.01, 89.02, 89.04, 89.05 (excluding floating or submersible drilling or production platforms) or 89.06 in a shipyard; and (iii) such use is in a shipyard of the manufacturer of such goods, different from the shipyard where the said goods have been manufactured, the procedure set out in the Central Excise Removal of Goods at concessional Rate of duty for Manufacture of Excisable goods Rules, 2001 is followed.
4. All goods If manufactured in workshops situated within the precincts of mines and intended for use in such mines.
5. All goods other than those falling under heading 2701, 2702, 2703, 2704 and 2706 If manufactured in a mine.
6. **** *****
7. ***** ****
8. Tools, jigs and fixtures falling under Chapter 82 If manufactured by Tool Rooms or Institutions specified below :- (i) Central Tool Room, Ludhiana. (ii) Central Tool Room and Training Centre, Calcutta. (iii) Central Institute of Tool Design, Hyderabad (iv) Institute for Designing of Electrical Measuring Instruments, Bombay (v) Central Institute of Hand Tools, Jallandhar (vi) Tool Room and Training Centre, Delhi (vii) Government Tool Room and Training Centre, Bangalore (viii) Institute of Training and Tool Room of Uttar Pradesh, Lucknow.
9. ***** *****
10. ***** *****
11. **** ****
12. **** *****
13 ***** *****
14 ***** ****
15. ***** ****
16. ***** *****
17 All goods If manufactured by an institution which- (i)                 Is primarily engaged in the rehabilitation of physically or mentally handicapped persons, (ii)               Employees primarily, physically or mentally handicapped persons for its manufacturing activity (iii)             Is receiving financial assistance from the Ministry of welfare, government of India for such rehabitation and (iv)             Produces a certificate once in a financial year from an officer in the ministry of welfare not below the rank of Deputy secretary to the Government of India to the effect that it satisfies the conditions mentioned in clauses (i) to (iii) above.

Explanation. - For the purposes of this notification, the expression, -

(i) “prison” means any jail or place used permanently or temporarily under the general or special orders of a State Government for the detention of prisoners and includes, -

(a) any place which has been declared by a State Government by general or special order to be a subsidiary jail; and

(b) any reformatory, borstal institution or other insitution of a like nature;

(ii) “mine” has the meaning assigned to it in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952);

(iii) “narcotic drugs” and “psychotropic substance” shall have the meanings respectively assigned to them as defined in clause (xiv) and clause (xxiii) of section 2 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985);

(iv) “kits for testing narcotic drugs and psychotropic substances” means kits consisting of chemical reagents in small bottles for testing narcotic drugs and psychotropic substances manufactured by M/s. Hindustan Antibiotics Limited, Pimpri, including test tubes, droppers, test plates and similar other accessories supplied with such kits;

(v) “Armed Forces of the Union” means the Central Reserve Police Force, the Indo-Tibetan Border Police Force, the Special Services Bureau, the Border Security Force, the Central Industrial Security Force and the National Security Guard maintained or constituted under the Central Reserve Police Force Act, 1949 (66 of 1949), the Indo-Tibetan Border Police Force Act, 1992 (35 of 1992), the Border Security Force Act, 1968 (47 of 1968), the Central Industrial Security Force Act, 1968 (50 of 1968) and the National Security Guard Act, 1986 (47 of 1986) respectively.

Amended by 23/2015-C.E. dated 30-04-2015