GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, dated the 31st March, 2000
NOTIFICATION
No. 28/2000-Central Excise (N.T.), dated 31-3-2000.
In exercise of the powers conferred by rule 57AK of the Central Excise Rules,
1944, the Central Government, hereby declares the following inputs (hereinafter
referred to as the "declared inputs") and final products falling within the
First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), namely:-
| S.No. |
Inputs |
Final products |
| (1) |
Goods falling within heading No. 51.05, 51.06, 51.07, 52.05, 52.06,
53.06, 53.07, 53.08, 54.02, 54.03, 54.04, 54.05, 55.01, 55.02, 55.03,
55.04, 55.05, 55.06, 55.07, 55.09,55.10,56.04, 56.05 or 56.06 of the
said First Schedule. |
The following goods manufactured by a composite mill, namely:-
- Processed fabrics falling under Chapters 52 (except sub-heading Nos.
5207.10, 5208.10 and 5209.10), 54 (except sub-heading Nos. 5406.10 and
5407.10) or 55 (except sub-heading Nos. 5511.10, 5512.10,5513.10 and
5514.10); or
- Fabrics of cotton or man-made fibres, whether or not processed,
falling under heading Nos. 58.01, 58.02, 58.06 (except sub-heading No.
5806.20), 60.01, 60.02 (except sub-heading No. 6002.10) of the said
First Schedule.
|
| (2) |
- Goods falling within heading No. 51.05, 51.06, 51.07, 52.05,
52.06, 53.06, 53.07, 53.08, 54.02, 54.03, 54.04, 54.05,55,01, 55.02,
55.03, 55.04, 55.05, 55.06, 55.07, 55.09, 55.10, 56.04, 56.05 or 56.06
of the said First Schedule;
- Dyes, chemicals, consumables, packaging materials falling within
the said First Schedule.
|
The following goods manufactured by a manufacturer other than a
composite mill, namely:-
- Processed fabrics falling under Chapters 52 (except sub-heading
nos. 5207.10, 5208.10 and 5209.10), 54 (except sub-heading Nos.
5406.10 and 5407.10) or 55 (except sub-heading Nos. 5511.10,
5512.10, 5513.10 and 5514.10); or
- Fabrics of cotton or man-made fibres, whether or not processed,
falling under heading Nos. 58.01, 58.02, 58.06 (except sub-heading
No. 5806.20), 60.01, 60.02 (except sub-heading No. 6002.10) of the
said First Schedule.
|
| (3) |
Goods falling within heading Nos. 52.05 or 52.06 of the said First
Schedule |
The following goods manufactured by a manufacturer other than a
composite mill, namely:-
- Gauze falling under heading No. 58.03 of the said First Schedule;
- Book binding cloth falling under sub-heading No. 5901.10 of the said
First Schedule.
|
- The Central Government further declares that -
- the duty of excise under the Central Excise Act, 1944 (1 of 1944);
- the additional duty under section 3 of the Customs Tariff Act, 1975
(51 of 1975); or
- the additional duty of excise under section 3 of the Additional
Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978),
(hereinafter referred to as the declared duty) shall be deemed to have
been paid on the declared inputs and the same,-
- in case of a composite mill, shall be equivalent to the amount
calculated at the rate of -
- 40 per cent. of the duty of excise leviable under the Central Excise
Act, 1944 (1 of 1944) read with any notification for the time being in
force, on the final products of cotton (not containing any other-textile
material) declared herein;
- 50 per cent. of the duty of excise leviable under the Central Excise
Act, 1944 (1 of 1944), read with any notification for the time being in
force, on the final products other than those specified in sub-clause
(a),
- in case of a manufacturer other than a composite mill, shall be
equivalent to the amount calculated at the rate of -
- 50 per cent. of the duty of excise leviable under the Central Excise
Act, 1944 (1 of 1944) read with any notification for the time being in
force, on the final products of cotton (not containing any other textile
material) declared herein;
- 0per cent of the duty of excise leviable under the Central Excise
Act, 1944 (1 of 1944), read with any notification for the time being in
force, on the final products other than those specified in sub-clause
(a), and credit of the declared duty so deemd to have been paid shall be
allowed to the manufacturer of the final products, without production of
documents evidencing payment of duty on the said inputs, at the time of
clearance of the said final products.
- The credit of declared duty allowed in respect of the said inputs
shall be utilized only towards payment of duty of excise leviable under
the said Central Excise Act, on the said final products:
Provided that the credit of declared duty in respect of the inputs used
in the final products cleared for export under bond shall be allowed to
be utilized towards payment of duty of excise on any final products
cleared for home consumption or for export on payment of duty and, where
for any reason, such adjustment is not possible, by refund to the
manufacturer subject to such safeguards, conditions and limitations as
may be specified by the Central Government in the Official Gazette:
Provided further that no such refund of declared duty shall be allowed
if the manufacturer avails of drawback allowed under the Customs and
Central Excise Duties (Drawback) Rules, 1971 or claims rebate of duty
under rule 12 of the Central Excise Rules, 1944, in respect of such
duty.
- The provisions of this notification shall not apply to a manufacturer
(other than a composite mill) who avails any credit, under rule 57AB of
the Central Excise Rules, 1944, in respect of the said inputs and the
said inputs are used in the manufacture of the said final products.
- In respect of a composite mil, the provisions of this notification
shall apply only to processed fabrics manufactured from unprocessed
fabrics not woven in the same composite mill.
- Where the final products have been removed clandestinely without
payment of duty of excise leviable under the Central Excise Act, 1944 (1
of 1944), or as the case may be, the additional duty leviable under the
Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58
of 1957), at the time of clearance of such final products, nothing
contained in this notification shall apply in respect of such final
products even if the duty of excise leviable on such final products is
paid after such removal.
- The provisions of this notification shall not apply to final products
on which duty of excise leviable under the Central Excise Act, 1944 (1
of 1944), or as the case may be, the additional duty leviable under the
Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58
of 1957), has not been levied or paid or has been short-levied or short
paid or erroneously refunded by reason of fraud, collusion or any wilful
misstatement or suppression of facts, or contravention of any provisions
of the Central Excise Act or of the rules made thereunder with intent to
evade payment of duty.
- Notwithstanding anything contained in this notification, the declared
duty in respect of the declared inputs shall be deemed to have been paid
and the credit of the declared duty shall be allowed for an amount
calculated at the rate of
- 50 per cent. of the duty of excise leviable under the Central Excise
Act, 1944 (1 of 1944) read with any notification for the time being in
force, on the final products of cotton (not containing any other textile
material) declared herein;
- 60 per cent of the duty of excise leviable under the Central Excise
Act, 1944 (1 of 1944), read with any notification for the time being in
force, on the final products other than those specified in sub-clause
(a),
at the time of clearance of-
(i) final products lying in stock in the processing factory of a multi-locational
composite mill as on the 2nd day of June, 1998; or. (ii) final products,
manufactured from unprocessed, or semi-processed fabrics lying in stock
in the processing factory of a multi-locational composite mill as on the
2nd day of June, 1998:
Provided that no credit under this paragraph shall be taken where the
processing factory of the said multi-locational composite mill has taken
credit in respect of the said inputs under any other rule or
notification.
- The provisions of this notification shall not apply to an independent
processor, i.e., 'a manufacturer who is engaged primarily in the
processing of fabrics with the aid of power and who also has the
facility in his factory (including plant and equipment) for carrying out
heat-setting or drying, with the aid of power or steam in a hot-air stenter and who has no proprietory interest in any factory primarily and
substantially engaged in the spinning of yarn or weaving or knitting of
fabrics, on or after the 10th December, 1998, in respect of final
products falling under heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07,
55.11, 55.12, 55.13 or 55.14, or processed textile fabrics of cotton or
man-made fibres, falling under heading Nos. or sub-heading Nos. 58.01,
58.02, 5806.10, 5806.40, 6001.12, 6001.22, 6001.92, 6002.20, 6002.30,
6002.43 or 6002.93, of the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986).
- This notification shall come into effect on and from the 1st day of
April, 2000.
Explanation I.- It is clarified that even if the declared inputs are
used directly by a manufacturer of final products the credit of the
declared duty shall, notwithstanding the actual amount of duty paid on
such declared inputs, be deemed to be equivalent to the amount specified
in this notification and the credit of the declared duty shall be
allowed to such manufacturer.
Explanation II.- For the purposes of this notification, "Composite aril"
means a manufacturer who is engaged in the processing of fabrics with
the aid of power along with weaving or knitting or crocheting of fabrics
within the same factory and includes a multi-locational-composite mill,
i.e., a public limited company which is engaged in the processing of
fabrics with the aid of power along with weaving or knitting or
crocheting of fabrics in one or more factories owned by the same public
limited company.
Explanation III.- For removal of doubts, it is clarified that the
provisions of this notification shall not apply where processed fabric
itself is used as an input for further processing.
Explanation IV.- For the removal of doubts, it is clarified that the
provisions of paragraph 4 shall not apply to a manufacturer who avails
of any credit, under rule 57AB of the Central Excise Rules, 1944, in
respect of the declared inputs where the said declared inputs are used
in manufacture of final products other than the said final products.
(Sanjeev Sachdeva)
Deputy Secretary to the Government of India
F.No. B4/4/2000-TRU