Member (Finance), NHAI, can issue exemption notification

CHATROOM

We have received an order for supplies to National Highway Authority of India (NHAI). We want to clear the goods without excise duty payment under exemption notification no. 108/95 dated August, 28, 1995. We have obtained the necessary certificate from NHAI but the excise authorities are denying the exemption on the grounds that the certificate is not signed by the head of NHAI but by Member (Finance) of NHAI.

Under notification No. 108/95-C.E., dated August, 28, 1995, exemption from central excise duty is provided to goods supplied to the UN or an International Organisation, or project financed by said UN or organisation, as per the conditions specified in the said Notification. For claiming exemption, the manufacturer of subject goods is required to produce before the jurisdictional Central Excise AC/DC a certificate, for various situations as mentioned in the notification.

In terms of para C (i) of the Notification, such certificate is required to be signed by the ‘executive head’ of the Project Implementing Authority and countersigned by an officer not below the rank of a Joint Secretary to the GoI, in the concerned Line Ministry in the GoI. National Highway Authority of India (NHAI) had represented to finance ministry that they are implementing such projects and the Chairman of NHAI has to sign hundreds of such certificates, making it a very time consuming exercise. Therefore, in their Board meeting, NHAI had resolved to delegate the power vested in the Chairman as ‘executive head’ to Member (Finance).

Hence they had requested to extend the exemption under the said Notification on the basis of certificate issued by Member (Finance), NHAI. The Central Board of Excise and Customs (CBEC) had examined the matter and noted that the issue of such certificate is a time consuming exercise. Accordingly, the CBEC had decided that in respect of Notification No. 108/95-C.E., dated Augus, 28, 1995, the exemption under the said Notification shall be extended by the Central Excise field formations on the basis of certificate issued by the Member (Finance), NHAI in terms of para C (i) of the said Notification subject to fulfilment of other conditions.

In this connection, you may refer your central excise authorities to CBEC letter F.No. 110/49/2007-CX.3 dated December 17, 2007. Regulation 6(a) of Customs House Agents Licensing Regulations, 2004 specifies certain professional qualifications such as CA/MBA/LLB to be possessed by the applicant. Can equivalent degrees of degrees mentioned also be considered or specifically the ones mentioned only?

The said Regulation 6 (a) uses the words “the applicant, or his authorised employee, is a graduate from a recognised University and possesses a professional degree viz. C.A./M.B.A./L.L.B./Diploma in Customs Clearance work from any Institute or University recognised by the government with a working knowledge of computers and customs procedures.” As you will observe, the word used before professional qualifications is viz. It means ‘namely’. It does not mean ‘including’. Therefore, with specific reference to the context in which the qualifications are mentioned, equivalent qualifications are not acceptable.