Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (Notification No. 45/2000-CE(NT), Dated 30-6-2000 [Effective from 1-7-2000]


CHAPTER I
CHAPTER II
CONSUMER WELFARE FUND RULES, 1992

DECLARATION
APPLICANT
INDUCTION FURNACE ANNUAL CAPACITY DETERMINATION RULES, 1997
HOT RE-ROLLING STEEL MILLS ANNUAL
HOT-AIR STENTER INDEPENDENT TEXTILE

CENTRAL EXCISE VALUATION (DETERMINATION OF PRICE
OF EXCISABLE GOODS) RULES, 2000

( Notification No. 45/2000-C.E. (N.T.), dated 30-6-2000 [Effective from 1-7-2000], as amended by Notification No. 23/2002-C.E. (N.T.), dated 13-6-2002 and No. 11/2003-C.E. (N.T.), dated 1-3-2003.)

    1. These rules may be called the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.
    2. They shall come into force on and from the 1st day of July, 2000.

CHAPTER I
PRELIMINARY

  1.  In these rules, unless the context otherwise requires,-
    1. "Act" means the Central Excise Act, 1944 (1 of 1944);
    2. "normal transaction" means the transaction value at which the greatest aggregate quantity of goods are sold;
    3. "value" means the value referred to in Section 4 of the Act;
    4. words and expressions used in these rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act.

CHAPTER II
DETERMINATION OF VALUE

  1.  The value of any excisable goods shall, for the purposes of clause (b) of sub-section (1) of Section 4 of the Act, be determined in accordance with these rules.
  2. The value of the excisable goods shall be based on the value of such goods sold by the assessee for delivery at any other time nearest to the time of the removal of goods under assessment, subject, if necessary, to such adjustment on account of the difference in the dates of delivery of such goods and of the excisable goods under assessment, as may appear reasonable to the proper officer.
  3. Where any excisable goods are sold in the circumstances specified in clause (a) of sub-section (1) of section 4 of the Act except the circumstances in which the excisable goods are sold for delivery at a place other than the place of removal, then the value of such excisable goods shall be deemed to be the transaction value, excluding the cost of transportation from the place of removal upto the place of delivery of such excisable goods.

    Explanation 1.– “Cost of transportation” includes –
    1. the actual cost of transportation; and
    2. in case where freight is averaged, the cost of transportation calculated in accordance with generally accepted principles of costing.
    Explanation 2. - For removal of doubts, it is clarified that the cost of transportation from the factory to the place of removal, where the factory is not the place of removal, shall not be excluded for the purposes of determining the value of the excisable goods.
  4. Where the excisable goods are sold in the circumstances specified in clause (a) of sub section (1) of section 4 of the Act except the circumstance where the price is not the sole consideration for sale, the value of such goods shall be deemed to he the aggregate of such transactin value and the amount of money value of any additional consideration flowing directly or indirectly from the buyer to the assessee.

    Explanation 1 - For removal of doubts, it is hereby clarified that the value, apportioned as appropriate, of the following goods and services, whether supplied directly or indirectly by the buyer free of change or at reduced cost for use in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or payable, shall be treated to be the amount of money value of additional consideration flowing directly or indirectly from the buyer to the assessee in relation to sale of the goods being valued and aggregated accordingly, namely:-
    1. value of materials, components, parts and similar items relatable to such goods;
    2.  value of tools, dies, moulds, drawings, blue prints, technical maps and charts and similar items used in the production of such goods;
    3. value of material consumed, including packaging materials, in the production of such goods.
    4.  value or engineering, development, art work, design work and plans and sketches undertaken elsewhere than in the factory of production and necessary for the production of such goods.

      Explanation. 2– Where an assessee receives any advance payment from the buyer against delivery of any excisable goods, no notional interest on such advance shall be added to the value unless the Central Excise Officer has evidence to the effect that the advance received has influenced the fixation of the price of the goods by way of charging a lesser price from or by offering a special discount to the buyer who has made the advance deposit.

      Illustration 1.- X, an assessee, sells his goods to Y against full advance payment at Rs. 100 per piece. However, X also sells such goods to Z without any advance payment at the same price of Rs. 100 per piece. No notional interest on the advance received by X is includible in the transaction value.

      Illustration 2.- A, an assessee, manufactures and supplies certain goods as per design and specification furnished by B at a price of Rs. 10 lakhs. A takes 50% of the price as advance against these goods and there is no sale of such goods to any other buyer. There is no evidence available with the Central Excise Officer that the notional interest on such advance has resulted in lowering of the prices. Thus, no notional interest on the advance received shall be added to the transaction value.
  5. Where the excisable goods are not sold by the assessee at the time and place of removal but are transferred to a depost, premises of a consignment agent or any other place or premises (hereinafter to as "such other place") from where the excisable goods are to be sold after their clearance from the place of removal and where the assessee and the buyer of the said goods are not related and the price is the sole consideration for the sale, the value shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment.
  6. Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be one hundred and fifteen per cent of the cost of production or manufacture of such goods.
  7. When the assessee so arranges that the excisable goods are not sold by an assessee except to or through a person who is related in the manner specified in either of sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value of the goods shall be removal, to buyers (not being related person); or where such goods are not sold to such buyers, to buyers (being related person), who sells such goods in retail;
    Provided that in a case where the related person does not sell the goods but uses or consumes such goods in the production or manufacture or articles, the value shall be detemined in the manner specified in rule 8.
  8. When the assessee so arranges that the excisable goods are not sold by him except to or through an inter-connected undertaking, the value of goods shall be detemined in the following manner, namely:-
    1. If the undertakings are so connected that they are also related in terms of sub-clause (ii) or (iii) or (iv) of clause
    2. of sub-section (3) of Section 4 of the Act or the buyer is a holding company or subsidiary company of the assessee, then the value shall be detemined in the manner prescribed in rule 9.
      Explanation- In this clause "holding company" and "subsidiary company" shall have the sam meanings as in the Companies act, 1956 (1 of 1956).
      (b) in any other case, the value shall be detemined as if they are not related persons for the purpose of sub-section (1) of section 4.
  9. If the value of any excisable goods cannot be detemined under the foregoing rules, the value shall be detemined using reasonable means consistent with the principles and general provisions of these rules and sub-section (1) of section 4 of the Act.

CONSUMER WELFARE FUND RULES, 1992

M.F. (D.R.) Notification No. 29/92-C.E. (N.T.), dated 25-11-1992 as amended In exercise of the powers conferred by sub-section (2) of section 37, read with
section 12D of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government,
hereby makes the following rules, namely :

  1. Short title and commencement:
    1. These rules may be called the Consumer Welfare Fund Rules, 1992.
    2. They shall come into force on the date of their publication in the Official Gazette.
  2. Definitions. -In these rules, unless the context otherwise requires, -
    1.  "Act" means the Central Excise Act, 1944 (1 of 1944), or, as the case may be, the Customs Act, 1962 (52 of 1962);
    2. "Applicant" means any agency / organisation engaged in consumer welfare activities for a period of three years registered under the Companies Act, 1956 (1 of 1956) or under any other law for the time being in force, including village/mandal/samiti level co-operatives of consumers especially Women, Scheduled Castes and Scheduled Tribes, or any industry as defined in the Industrial Disputes Act, 1947 (14 of 1947) recommended by the Bureau to be engaged for a period of five years in viable and useful research activity which has made, or is likely to make, significant contribution in formulation of standard mark of the products of mass consumption, the Central Government or the State Government, and includes a consumer for the purpose of reimbursing legal expenses as referred to in clause (d) of rule-8 of these rules;
    3. "Application" means an application in Form AI, appended to these rules;
    4. "Bureau" means the Bureau of Indian Standards constituted under the Bureau of Indian Standards Act, 1986 (63 of 1986);
    5. "Central Consumer Protection Council" means the Central Consumer Protection Council established under sub-section (1) of section 4 of the Consumer Protection Act, 1986 (68 of 1986), for promotion and protection of rights of consumers;
    6. "Committee" means the Committee constituted under rule 5;
    7. "Consumer" has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of goods on which duty has been paid;
    8. "Consumer Welfare Fund" means the fund established by the Central Government under sub-section (1) of section 12C of the Central Excise Act, 1944 (1 of 1944);
    9. "Duty" means the duty paid under the Act;
      (ia) "Proper Officer" means the officer having the power under the Act to make an order that the whole or any part of the duty is refundable;
    10. "Standard mark" shall have the same meaning as assigned to it in clause (t) of section 2 of the Bureau of Indian Standards Act, 1986 (63 of 1986);
    11. "Welfare of the Consumers" includes promotion and protection of rights of consumers;
    12.  Words and expressions used in the rules and not defined but defined in the Consumer Protection Act, 1986 (68 of 1986) shall have the meanings respectively assigned to them in that Act.
  3. Establishment of Consumer Welfare Fund :-
    There shall be established a Consumer Welfare Fund with the Central Government into which credits of amounts of duty and income from investment along with other monies specified in sub-section (2) of section 12C of the Central Excise Act, 1944 (1 of 1944) shall be accredited.
    Provided that any amount having been credited to the Fund is ordered or directed as payable to any claimant by orders of proper officer, appellate authority or court, shall be paid from the Fund.
  4. Maintenance of accounts and records of Consumer Welfare Fund :-
    Proper and separate accounts in relation to the Consumer Welfare Fund shall be maintained by the Central Government and shall be subject to audit by the Comptroller and Auditor General of India.
  5. Constitution of the Committee :-
    1. The Committee constituted by the Central Government under sub-rule (2), shall make recommendations for proper utilisation of the money credited to the Consumer Welfare Fund for the welfare of the consumers, to carry out the purposes of these rules.
    2. The Committee shall consist of the following Members, namely :-
      1. The Secretary, Department of Consumer Affairs, who shall be the Chairman of the Committee;
      2. Secretary, Department of Expenditure in the Ministry of Finance or the Financial Adviser, Department of Consumer Affairs in the Ministry of Food, Civil Supplies and Public Distribution, who shall be the Vice-Chairman of the Committee;
      3. Chairman, Central Board of Excise and Customs or an officer not below the rank of a Joint Secretary in the Department of Revenue of Ministry of Finance;
      4. Member (Central Excise) of the Central Board of Excise and Customs or an officer not below the rank of a Joint Secretary in the Department of Revenue of Ministry of Finance;
      5.  Secretary/Joint Secretary/Economic Adviser (Monitoring) Department of Rural Development
      6.  Director General, Bureau of Indian Standards;
      7. The Additional Secretary or Joint Secretary incharge of Consumer Welfare Fund, in the Department of Consumer Affairs, who shall also be the Member-Secretary of the Committee:
        Provided that the Chairman or Vice-Chairman, as the case may be, may invite representatives of the State Governments concerned and a nominee of the Consumer Co-ordination Council to the meetings as and when necessary.
    3. The Committee shall be a standing Committee.
  6. Procedure for conduct of business :-
    1. The Committee shall meet as and when necessary, but not more than three months shall intervene between any two meetings.
    2. The Committee shall meet at such time and place as the Chairman, or in his absence the Vice-Chairman of the Committee may deem fit.
    3. The meeting of the Committee shall be presided over by the Chairman, and in the absence of the Chairman, the Vice-Chairman shall preside over the meetings of the Committee.
    4. Each meeting of the Committee shall be called, by giving notice in writing to every member of not less than ten days from the date of issue of such notice.
    5. Every notice of the meeting of the Committee shall specify the place and the day and hour of the meeting and shall contain statement of business to be transacted thereat.
    6. No proceeding of the Committee shall be valid, unless it is presided over by the Chairman or Vice-Chairman and a minimum of three other members are present.
  7. Powers and functions of the Committee :-
    1. The Committee shall have powers :-
      1. to require any applicant to produce before it, or before a duly authorised Officer of the Central Government, or as the case may be, the State Government, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application;
      2. to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of Consumers, are stated to be carried on, to a duly authorised officer of the Central Government or, as the case may be. State Government;
      3. to get the accounts of the applicants audited, for ensuring proper utilisation of the grant;
      4. to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum, the sanctioned grant to the Committee, and to be subject to prosecution under the Act;
      5. to recover any sum due from any applicant in accordance with the provisions of the Act;
      6. to require any applicant, or class of applicants to submit a periodical report, indicating proper utilisation of the grant;
      7. to reject an application placed before it on the basis of involvement of factual inconsistency, or inaccuracy in the material particulars;
      8. to recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status, and importance and utility of nature of activity under pursuit, after ensuring that the financial assistance provided shall not be misutilised;
      9. to require Central Consumer Protection Council or the Bureau, to formulate broad guidelines for considering the projects/ proposals for the purpose of incurring expenditure from the Consumer Welfare Fund;
      10. to identify beneficial and safe sectors, where investments out of Consumer Welfare Fund may be made and make recommendations, accordingly.
      11. to relax the conditions required for the period of engagement in consumer welfare activities of an applicant as specified in clause (b) of rule 2;
      12. to make guidelines for the management and administration of the Consumer Welfare Fund.
    2. The Committee shall not consider an application, unless it has been inquired into, in material details and recommended for consideration accordingly, by the Member Secretary.
  8. Specification of purposes for utilisation of credits available in Consumer Welfare Fund :-
    The Committee shall make recommendations :-
    1. for making available grants to any applicant;
    2. for making available grants recommended by the Bureau for activities relating to standard marks, which may be considered essential by the Central Government, for the welfare of the consumers;
    3. for investment of the money available in the Consumer Welfare Fund;
    4. for making available grants, on a selective basis for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication;
    5. for making available grants for any other purpose recommended by the Central Consumer Protection Council, as may be considered appropriate by the Committee.

FORM-AI
[See Rule 2 (c) of Consumer Welfare Fund Rules, 1992]

IMPORTANT: Please fill up this form, furnishing correct details sought for, based on verifiable true state of affairs without causing suppression of any material information which, if resorted to, shall entail prosecution under the Act.

Note :
 All applications must be submitted along with their enclosures in duplicate duly attested by any gazetted officer of the Central or State Government.

  1.  Name and full postal address of the applicant :
  2. Status of the applicant under clause (b) of Rule 2 :
  3. Date of establishment :
  4. Whether registered under the Societies Registration :
    Act, 1860 (21 of 1860) or any other relevant Act
  5. If yes, number and year of registration (Attested copy :
    of registration certificate to be enclosed)
  6.  Whether the organisation is of national or State level :
  7. Number of Managing Committee members together :
    with list of names, addresses and occupation of the
    office bearers
  8. Brief details of the organisation, objectives and :
    activities during the last three years
  9. Purpose for which the amount is required (please state :
    the details of the project and its proposed (implementation)
  10. Amount of grant required - itemwise details under :
    non-recurring, recurring to be enclosed
  11. Time Schedule of the activities arranged :
  12. The total amount incurred or invested by the applicant, :
    or likely to be incurred by the applicant
  13. Sources of funding of balance amount whether the :
    organisation is getting financial assistance from any
    other official or non-official source, if yes, give details
  14.  Details of prosecution, if any, in a court of law :
    launched against the applicant, during the last five years
  15. Copies of the following documents (duly attested by
    a gazetted officer of the Central or State Government)
    to be attached -
    1. Constitution of the organisation and Articles of Association.
    2. Annual reports of the organisation for last three years (please furnish separate
      Annual Reports for each year).
    3. Annual Audited Statement of accounts for each of last 3 years duly signed by
      Chartered Accountant. These Statements must bear the registration number and
      official seal or stamp of the Chartered Accountant.

DECLARATION
(To be signed by the applicant or its authorised agent)

The particulars heretofore given, are true and correct. Nothing material has been suppressed. It is certified that I/we have read the guidelines, terms and conditions governing the scheme and undertake to abide by them on behalf of our organisation/institution. The financial assistance, if provided, shall be put to the declared use, for promotion and protection of rights of consumers or for standard marks. (Strike out whichever is inapplicable).

APPLICANT

Dated
Station

To

        Member-Secretary
        Committee (Consumer Welfare Fund)
        Krishi Bhawan
        New Delhi

                    Recommendation of Member-Secretary
Factual details furnished in the application have been verified in consultation with Ministry/Department of agency who is/are administratively concerned in the matter and found to be correct/incorrect. The claims of the applicant are recommended for consideration by the Committee (Please give reasons in support of your recommendation).

Member-Secretary
Committee (Consumer Welfare Fund)

Recommendation of the Committee

        Recommended for grant of Rs. ________ Rupees _____________________________ (in words) from the Consumer Welfare Fund as discussed in the meeting held on _______ (date).

Chairman
Committee

INDUCTION FURNACE ANNUAL CAPACITY DETERMINATION RULES, 1997

Notification No. 24/97-C.E. (N.T.), dated 25-7-1997
(This notification has been rescinded vide Notification No. 24/2000-CE (NT), dated 31.3.2000)

In exercise of the powers conferred by sub-section (2) of section 3A of the Central Excise Act,1944 (1 of 1944), the Central Government hereby makes the following rules, namely :-

  1. Short title and commencement. -
    1. These rules may be called the Induction Furnace Annual Capacity Determination Rules, 1997.
    2. They shall come into force on the 1st day of August, 1997.
  2. These rules shall apply to ingots and billets of non-alloy steel falling under sub-heading Nos. 7206.90 and 7207.90 of the Schedule of the Central Excise Tariff Act, 1985 (5 of 1986), for determining the annual capacity of production of a factory if such goods are manufactured in an induction furnace unit.
    Explanation. - For removal of doubts it is hereby clarified that these rules also apply to an induction furnace unit which ordinarily produces non-alloy steel ingots and billets but may also incidentally produce castings or stainless steel products.
  3. The annual capacity of production referred to in rule 2 shall be determined in the following manner, namely:
    1. the Commissioner of Central Excise (hereinafter referred to as the Commissioner) shall call for an authenticated copy of the manufacturer's invoice or trader's invoice, who have supplied or installed the furnace or crucible to the induction furnace unit, and ascertain the total capacity of the furnaces installed in the factory on the basis of such invoice or document;
    2. if the invoice or document referred to in sub-rule (1) is not available for any reason with the manufacturer then the Commissioner shall ascertain the capacity of the furnaces installed in the induction furnace unit on the basis of the capacity of comparable furnaces installed in any other factory in respect of which the manufacturer's invoice or other document indicating the capacity of the furnace is available or, if not so possible, on the basis of any other material as may be relevant for this purpose. The Commissioner may, if he so desires, consult any technical authority for this purpose;
    3. the annual capacity of production of ingots and billets of non-alloy steel in respect of such factory shall be deemed to be as determined by applying the following formula :-
      ACP = TCF X 3200, where -
      ACP = Annual Capacity of Production of the factory producing ingots and billets of non-alloy
      steel in metric tonnes;
      and
      TCP = Total capacity of the furnaces installed in the factory producing ingots and billets of
      non-alloy steel in metric tonnes.
    4. the Commissioner of Central Excise shall, as soon as may be, after determining, the total capacity of furnaces installed in the factory as also the annual capacity of production by an order intimate to the manufacturer.
  4. The capacity of production for any part of the year, or for any change in the total furnace capacity, shall be calculated pro rata on the basis of the annual capacity of production determined in the above manner. In case a manufacturer proposes to increase or reduce the capacity of induction furnace, such manufacturer shall intimate about the proposed change to the Commissioner of Central Excise in writing, with a copy to [Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise], at least one month in advance of such proposed change, and shall obtain the written approval of the Commissioner before making such change. Thereafter the Commissioner of Central Excise shall determine the date from which the change in the installed capacity shall be deemed to be effective.

HOT RE-ROLLING STEEL MILLS ANNUAL
CAPACITY DETERMINATION RULES, 1997

M.F. (D.R.) Notification No. 32/97-C.E. (N.T.), dated 1-8-1997

( This notification has been rescinded vide Notification No. 24/2000-CE (NT), dated 31.3.2000)

In exercise of the powers conferred by sub-section (2) of section 3A of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules, namely :-

    1.  These rules may be called the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997.
    2. They shall come into force on the 1st day of August, 1997.
  1. These rules shall apply to non-alloy steel hot re-rolled products falling undersub-heading Nos.7211.11,7211.19,7211.30,7211.52,
    7211.59,7211.60,7211.92, 7211.99,7213.90,7214.90,7215.90,7216.10 and 7216.90 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), for determining the annual capacity of production of a factory if such goods are manufactured or produced with the aid of hot re-rolling mill.
  2. The annual capacity of production referred to in rule 2 shall be determined in the following manner, namely :-
    1. a hot re-rolling mill shall declare the values of 'd', 'n', 'i' and 'speed of rolling', the parameters referred to in sub-rule (3), to the Commissioner of Central Excise (hereinafter referred to as the Commissioner), with a copy to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise;
    2. on receipt of the information referred to in sub-rule (1), the Commissioner shall take necessary action to verify their correctness and ascertain the correct value of each of the parameters. The Commissioner may, if he so desires, consult any technical authority for this purpose;
    3. the annual capacity of production of hot re-rolled products of non-alloy steel in respect of such factory shall be deemed to be as determined by applying the following formula :-
      Annual Capacity = 1.885 xl0-4 xdxnxixexwx Number of utilised hours (in metric tonnes)
      Where:
      d = Nominal centre distance of the pinions in the pinion stand in millimetres
      n = Nominal revolutions per minute (RPM) of the drive
      i = Reduction ratio of the gear box or of the pulley system or combination thereof
      w = Weight in Kilogramme per metre of the re-rolled product
      the value of 'e' in the formula shall be deemed to be 0.30 in case of low speed mills,
      and 0.75 in case of high speed mills
      the value of 'w' factor in the formula for the high speed mills shall be deemed to be
      0.45 and for the low speed mills shall be deemed to be as under, -
      Nominal centre distance of the pinions in
      the pinion stand in millimetres
       w in kilogramme per metre
       Up to 110  0.100
      111 to 160  0.150
      161 to 210  0.395
      211 to 260  0.888
      261 to 310  1.200
      311 to 360  2.466
      361 to 410  4.850

      Number of utilised hours shall be deemed to be as under, -
      S.No. Reheating Furnace Utilised hours per year
      Type No. of furnace
      1. Batch 1 1200
      2. Batch 2 1800
      3. Batch more than 2 2400
      4. Pusher type 1 or more 2400

      Explanation. - For the purposes of this rule :-
      1. a high speed mill means a mill which produces hot re-rolled products at a speed of 8.5 metres per second or more and a low speed mill means a mill which produces hot re-rolled products a speed less than 8.5 metres per second.
      2. nominal centre distance is the pinion centre distance of the pinion stand connecting the last rolling mill drive of the finishing mill excluding any pinch roll. Such a pinch roll is not a finishing stand.
    4. the Commissioner of Central Excise shall, as soon as may be, after determining the total capacity of the hot re-rolling mill installed in the factory as also the annual capacity of production, by an order, intimate to the manufacturer.
      Provided that the Commissioner may determine the annual capacity of the hot re-rolling unit on provisional basis pending verification of the declaration furnished by the hot re-rolling mills and pass an order accordingly. Thereafter, the Commissioner may determine the annual capacity, as soon as may be, and pass an order accordingly.
    1.  The capacity of production for any part of the year, or any change in the total hot re-rolling mill capacity, shall be calculated pro rata on the basis of the annual capacity of production determined in the above manner stated in rule 3.
    2. In case a manufacturer proposes to make any change in installed machinery or any part thereof which tends to change the value of either of the parameters 'd', 'n', 'e', 'i' and 'speed of rolling' referred to in sub- rule (3) of rule 3, such manufacturer shall intimate about the proposed change to the Commissioner of Central Excise in writing, with a copy to Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, at least one month in advance of such proposed change, and shall obtain the written approval of the Commissioner before making such change. Thereafter the Commissioner of Central Excise shall determine the date from which the change in the installed capacity shall be deemed to be effective.
  3. In case, the annual capacity determined by the formula in sub-rule (3) of rule 3 in respect of a mill, is less than the actual production of the mill during the financial year 1996-97, then the annual capacity so determined shall be deemed to be equal to the actual production of the mill during the financial year 1996-97.

HOT-AIR STENTER INDEPENDENT TEXTILE
PROCESSORS ANNUAL CAPACITY DETERMINATION RULES, 2000

M.F. (D.R.) Notification No. 14/2000-C.E. (N.T.), dated 1-3-2000 as amended by 26/2000 C.E.(N.T.) dated 31-3-2000.
(Rescinded vide Notification No. 7/2001-CE, dt.1-3-2001)

In exercise of the powers conferred by sub-section (2) of section 3A of the Central Excise Act, 1944 (1 of 1944) and in supersession of the Hot-air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998, published in the Gazette of India, Extraordinary, vide notification No. 42/98-Central Excise(N.T.), dated the 10th December, 1998, the Central Government, hereby makes the following rules to provide for determination of the annual capacity of production of certain goods notified under sub-section (1) of said section 3A, namely :-

  1. Short title and commencement. -
    1. These rules may be called the Hot-air Stenter Independent Textile Processors Annual Capacity Determination Rules, 2000.
    2. They shall come into force with effect from the 1st day of March, 2000.
  2. Application. -
    These rules shall apply to processed textile fabrics 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 Central Excise Tariff Act, 1985 (5 of 1986), for determining the annual capacity and the average value of production of an independent processor if such textile fabrics are manufactured or produced with the aid of a hot-air stenter.
  3. Declaration to be filed by independent processor. -
    1.  An independent processor shall declare -
      1. the number of hot-air stenters installed in his factory;
      2. the name of the manufacturer of each of the hot-air stenter, its identification no.and the date of its purchase;
      3. the number and size (both the length and width in centimetres) of chambers in each of the hot-air stenters;
      4. the total value of processed textile fabrics referred to in rule 2, produced or manufactured in the preceding financial year; and
      5. the total quantity of the said processed textile fabrics, produced or manufactured in the preceding financial year;
      6. the total value of the said processed textile fabrics, cleared from the factory in the preceding financial year; and
      7. the total quantity of the said processed textile fabrics, cleared from the factory in the preceding financial year,
        to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise.
    2. With effect from 1st of April, 2000, the independent processor shall also file an annual declaration, indicating whether he seeks to retain the option for redetermination of the duty liability on the basis of actual production, in terms of sub-section (4) to section 3A or not, prior to the commencement of the relevant financial year, and the option so exercised shall not be withdrawn during any part of such financial year :

      Provided that in respect of new units commencing production during the course of a financial year, such declaration shall be filed prior to the commencement of commercial production and the option exercised through such declaration shall not be withdrawn during the remaining part of that financial year.
      Provided that in respect of new units Commencing production during the Course of a financial year, such declaration shall be filed prior to the Commencement of Commercial production and the option exercised through such declaration shall not be with drown during the remaining part of that financial year
    3. On receipt of the declaration referred to in rule 3, The Deputy Commissoner of Central Excise or the Assistant Commissioner of Central Excise shall take necessary action to verify its correctness and ascertain the correct value of each of the parameters given in such declaration :
      Provided that The Deputy Commissoner of Central Excise or the Assistant Commissioner of Central Excise may, if he so desires, consult any technical authority for this purpose;
  4. Determination of annual capacity and average value. -
    1. The annual capacity of production of processed textile fabrics specified in rule 2 in respect of a factory of an independent processor referred to in rule 2 shall be determined in the following manner, namely :-
      1. the number of chambers (of a hot-air stenter), each of which having a rail length of upto 3.05 metre on each side, installed in such factory shall be construed as one chamber and any fraction exceeding such rail length of any such chamber shall be computed on a pro-rata basis;
      2. the production capacity of a chamber in terms of quantity shall be deemed to be 1 lakh sq. mtr. per chamber per month.
    2. The average value of the processed textile fabrics (per square metre) referred to in rule 2 for such factory shall be arrived at by dividing the total value of such processed fabrics cleared from the factory in the immediately preceding financial year by the total quantity of such processed fabrics cleared during that preceding financial year:
      Provided that in the case of textile fabrics produced by a new unit or a closed uni t of such factory for which average value as specified above cannot be calculated, the average value of such fabrics shall be as declared by the independent processor at the time of making the declaration. But the amount of duty payable on such fabrics shall be re-worked out at the end of a financial year on the basis of actual average value of the textile fabrics produced in the financial year in such factory;
    3. The Deputy Commissoner of Central Excise or the Assistant Commissioner of Central Excise as the case may be shall, as soon as may be, after determining the annual capacity of production and the average value of processed textile fabrics and the number of chambers (of a hot-air stenter) of the factory of the independent processor, by an order, intimate the same as also the rate of duty applicable to the independent processor :

      Provided that the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, may determine the annual capacity of production on a provisional basis pending verification of the declaration furnished by the independent processor and pass an order accordingly. Thereafter, the Commissioner may determine, the annual capacity, as soon as maybe, and pass an order accordingly.
    4. The capacity of production for any part of the year, or any change in the total number of chambers, shall be calculated pro-rata on the basis of annual capacity of production determined in the manner specified in sub-rule (1).
  5. Changes in parameters for capacity determination. -
    In case an independent processor proposes to make any change in the installed machinery or any part thereof which tends to change any of the parameters referred to in rule 4, he shall intimate, about the proposed change, to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, in writing, with a copy to the Superintendent of Central Excise, on month in advance of such proposed change, and shall obtain the written approval of the Deputy Commisioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, before making such change, whereafter the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, shall determine the date from which the change in the annual capacity shall be deemed to be effective.

    Explanation I. -
    For the purposes of this notification, a float drying machine or any other equipment, except the galleries, of a length 3.05 metres installed in or attached to a stenter for aiding the process of heat setting or drying of the fabrics shall be deemed to be one chamber of a stenter and any fraction of such length shall be computed on a pro-rata basis.

    Explanation II. -
    Unless otherwise specified in any rule made under section 3A of the Central Excise Act, 1944(1 of 1944), for the purposes of this notification the goods shall be deemed to have been manufactured or produced with the aid of a hot-air stenter, if they are cleared from a factory where a hot-air stenter is installed, irrespective of whether it is in use or not, or is in working condition or not.

    Explanation III. -
    For the purposes of this notification, -
    1. "independent processor" means 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 proprietary interest in any factory primarily and substantially engaged in the spinning of yam or weaving or knitting of fabrics, on or after the 10th December, 1998;and
    2. "value" means the value as determined under section 4 of the Central Excise Act, 1944(1 of 1944).
      Explanation IV. -
      For removal of doubts, it is clarified that the hot-air stenters installed in the factory, but which are permanently closed or sealed as on the 1st day of March, 2000 shall, subject to such safeguards, conditions and limitations as may be specified by the Commissioner of Central Excise in this regard, not be taken into account for the purposes of determination of the annual capacity of production of the independent processor.

Also see:-

Notification No. 41/98-C.E. (N.T.) dated 10-12-1998
Notification No. 19/2000-C.E., dated 1-3-2000

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