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Concessional rate for units having clearances not exceeding Rs. 3 crores
in preceding financial year and availing CENVAT
Notification No. 9
dated 1st March 2001 (As
amended by Notification No. 23/2001, 35/2001, 40/2001, 47/2001, Notification No.
11 dated 1st March 2002, Notification No. 22 dated 11th March 2002)
This notification has been supersessed by Central
Excise Notification No. 9 dated 1st March 2002.
In exercise of the powers conferred by sub-section
(1) of section 5A of the Central Excise Act, 1944 (1 of 1944), and in
supersession of the notification of the Government of India in the Ministry of
Finance (Department of Revenue) No. 9/2000-Central Excise, dated the 1st
March, 2000, published in the Gazette of India vide number of G.S.R. 187(E),
dated the 1st March, 2000, except as respects things done or omitted
to be done before such supersession, the Central Government, being satisfied
that it is necessary in the public interest so to do, hereby exempts clearances,
specified in column (2) of the Table below (hereinafter referred to as the said
Table), for home consumption, of excisable goods of the description specified in
the Annexure appended to this notification
(hereinafter referred to as the specified goods), from so much of each of the
duties of excise specified thereon in the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986) or the Second Schedule to the said Central Excise
Tariff Act, as the case may be, as is in excess of the amount calculated at the
rate specified in the corresponding entry in column (3) of the said Table:
Provided that nothing contained in this
notification shall apply to a manufacturer who has availed the exemption under
Notification No. 39/ 2001- Central Excise dated the 31st July 2001 in
the same financial year.
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S.No.
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Value of Clearances
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Rate of duty
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(1)
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(2)
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(3)
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1.
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First clearances upto an aggregate value not
exceeding one hundred lakh rupees made on or after the 1st day of
April in any financial year.
Provided that in the financial year
2001-2002, in the period beginning with the 1st day of March, 2002 and ending on
the 31st day of March, 2002, both days inclusive, the aggregate value of
clearances of, -
a) air guns, air rifles and air pistols, which are exempt from the
provisions of the Arms Act, 1959 (54 of 1959); or
aa)
goods falling under heading No. 17.02 of the said First Schedule in relation to
which labelling or relabelling of containers and repacking from bulk packs to
retail packs or the adoption of any other treatment to render the product
marketable to the consumer amounts to manufacture; goods falling under Chapter
73 of the said First Schedule in relation to which the process of galvanization
amounts to manufacture; or
b) articles of apparel, knitted or crocheted, falling under Chapter 61
of the said First Schedule,
or any one or
more of these goods, that may be cleared at nil rate of duty shall not exceed
ten lakh rupees
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Sixty per cent of normal rate of duty
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2.
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All clearances of the specified goods which are used as inputs for
further manufacture of any specified goods within the factory of production of
the specified goods.
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Nil
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2.
The exemption contained in this notification shall apply only subject to
the following conditions, namely:
(i) a
manufacturer who intends to avail the exemption under this notification shall
exercise his option in writing for availing the
exemption under this notification before effecting the first clearances
and such option shall be effective from the date of exercise of the option and
shall not be withdrawn during the remaining part of the financial year.
(ii) while exercising
the option under condition (i), the manufacturer shall inform in writing to the
jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise
with a copy to the Superintendent of Central Excise giving the following
particulars, namely:
(a) name and address of the
manufacturer;
(b) location/ locations of factory/
factories;
(c) description of specified goods
produced;
(d) date from which option under this
notification has been exercised;
(e) aggregate value of clearances of
specified goods (excluding the value of clearances referred to in para 3 of this
notification) till the date of exercising the option.
(iii) where a manufacturer
opts for availing the exemption under this notification in terms of condition
(i) above, the clearances of specified goods already made during the financial
year, prior to the exercise of such option, shall be taken into account for
computing the aggregate value of clearances, as specified in the said Table.
Illustration 1: A manufacturer who has been paying the normal duty on any goods
during a financial year opts to avail of this exemption after making clearances
having an aggregate value of rupees twenty lakhs, he is entitled under this
notification to additional clearances of an aggregate value of rupees eighty
lakhs at the concessional rate of sixty per cent of normal duty.
Illustration 2: A manufacturer who has been availing of full exemption on any
goods during a financial year under notification No. 8/2001-Central Excise,
dated the 1st March, 2001, opts to avail of this exemption after
making clearances having an aggregate value of rupees twenty lakhs, he is
entitled under this notification to additional clearances of an aggregate value
of rupees eighty lakhs at the concessional rate of sixty per cent of normal
duty.
(iv) where a
manufacturer clears the specified goods from one or more factories, the
exemption in his case shall apply to the aggregate value of clearances mentioned
against each of the serial numbers in the said Table, and not separately for
each factory.
(v) where the
specified goods are cleared by one or more manufacturers from a factory, the
exemption shall apply to the aggregate value of clearances mentioned against
each of the serial numbers in the said Table and not separately for each
manufacturer.
(vi) the aggregate
value of clearances of all excisable goods for home consumption by a
manufacturer from one or more factories, or from a factory by one or more
manufacturers does not exceed rupees three hundred lakhs in the preceding
financial year.
3.
For the purposes of determining the aggregate value of clearances for
home consumption, the following clearances shall not be taken into account,
namely: -
(a) clearances, which
are exempt from the whole of the excise duty leviable thereon (other than an
exemption based on quantity or value of clearances) under any other notification
or on which no excise duty is payable for any other reason;
(b) clearances bearing
the brand name or trade name of another person, which are ineligible for the
grant of exemption under this notification in terms of paragraph 4;
(c) clearances of
specified goods which are used as inputs for further manufacture of any
specified goods within the factory of production of the specified goods;
(d) clearances of
strips of plastics used within the factory of production for weaving of fabrics
or for manufacture of sacks or bags made of polymers of ethylene or propylene.
Provided that the
clearances for home consumption of goods, whether on payment of duty or
otherwise, falling under Chapter 62 of the said First Schedule, between 1st
April, 2001 and 30th April, 2001 (both days inclusive) shall be taken
into account while computing the aggregate value of clearances at the
concessional rate of sixty percent of normal rate of duty under Sl. No. 1 of the
said Table for the financial year 2001-2002.
Provided further that the clearance for home consumption, whether on payment of duty or
otherwise, of goods falling under heading No. 93.05 and parts falling under
heading No. 93.06 or 93.07, between 1st April, 2001 and 30th
September, 2001 (both days inclusive) shall be taken into account while
computing the aggregate value of clearance at nil rate of duty under Sl.No. 1 of
the said Table for the Financial Year 2001-2002.
4.
The exemption contained in this notification shall not apply to the
specified goods bearing a brand name or trade name, whether registered or not,
of another person, except in the following cases, namely: -
(a) where specified
goods, being in the nature of components or parts of any machinery or equipment
or appliances, are cleared for use as original equipment in the manufacture of
the said machinery of equipment or appliances by following the procedure laid
down in the Central Excise (Removal of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Rules, 2001.
Provided that manufacturers, whose aggregate value of clearances for home
consumption of such specified goods for use as original equipment does not
exceed rupees one hundred lakhs in the financial year 2000-2001, as calculated
in the manner specified in paragraph 1, may submit a declaration regarding such
use instead of following the procedure laid down in the Central Excise (Removal
of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,
2001;
(b) where the goods
bear a brand name or trade name of-
(i) the Khadi and Village
Industries Commission; or
(ii) a State Khadi and Village Industry
Board; or
(iii) the National Small Industries Corporation;
or
(iv) a State Small Industries Development
Corporation; or
(v) a State Small Industries
Corporation;
(c) where the
specified goods are manufactured in a factory located in a rural area.
5.
This notification shall come into force on the 1st day of
April 2001.
Explanation:
For the purposes of this notification, -
(A) �brand
name� or �trade name� mean a brand name or trade name, whether registered
or not, that is to say name or a mark, such as symbol, monogram, label,
signature or invented word or writing which is used in relation to such
specified goods for the purpose of indicating, or so as to indicate a connection
in the course of trade between such specified goods and some person using such
name or mark with or without any indication of the identity of that person;
(B) where
specified goods manufactured by a manufacturer bear a brand name or trade name,
whether registered or not, of another manufacturer or trader, such specified
goods shall not, merely by reason of that fact, be deemed to have been
manufactured by such other manufacturer or trader;
(C) �value�
means, -
(i)
in respect of specified goods which have been notified under section 4A
of the Central Excise Act, 1944 (1 of 1944), as determined in accordance with
the provisions of that section, and
(ii) in
respect of specified goods other than those referred to in sub-clause (i) the
value as determined in accordance with the
provisions of section 4 of the Central Excise Act, 1944 (1 of 1944), or
the tariff value fixed under section 3 of the said Act;
(D) in
the determination of the value of clearances of Chinaware or Porcelain-ware or
both, where a manufacturer gets Chinaware or Porcelain-ware or both fired in a
kiln belonging to or maintained by a Pottery Development Centre run by the
Central Government or a State Government or by the Khadi and Village Industries
Commission, the value of the Chinaware or Porcelain-ware or both, belonging to
the said manufacturer and fired in such kiln shall be taken into account;
(E) where
the specified goods are manufactured in a factory belonging to or maintained by
the Central Government or by a State Government, or by a State Industries
Corporation, or by a State Small Industries Corporation or by the Khadi and
Village Industries Commission, then the value of excisable goods cleared from
such factory alone shall be taken into account;
(F) �normal
rate of duty� means:
(i)
in the case of goods leviable to duty under the First Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986), at the rate specified for such
goods in that Schedule read with any relevant notification (other than this
notification or a notification in which exemption is based on the value or
quantity of clearances) issued under sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944).
(ii) in
the case of goods leviable to duty under the Second Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986), at the rate specified for such goods in
that Schedule read with any relevant notification (other than this notification
or a notification in which exemption is based on the value or quantity of
clearances) issued under sub-section (1) of section 5A of the Central Excise
Act, 1944 (1 of 1944).
(G) �clearances for home consumption� shall
also include clearances for export to Bhutan and Nepal.
(H) �rural area� means the area comprised in
a village as defined in the land revenue records excluding-
(i) the area under any municipal committee, municipal corporation, town
area committee, cantonment board or notified area committee, or
(ii) any area that may be notified as an urban area by the Central
Government or a State Government.
(I)
refund of the difference of duty paid on clearances made before the 1st
day of May, 2001 and the concessional rate sixty percent of normal rate of duty,
on the ground that such clearances are included in the aggregate value of
clearances under Sl. No. 1 of the said Table, shall not be admissible;
(J) for
the purpose of goods falling under Chapter 62 of the said First Schedule, the
expression �manufacturer� shall included a person who is liable to pay the
duty of excise leviable on such goods under sub-rule (3) of rule 4 of the
Central Excise (No.2) Rules, 2001.
(K) refund
of duty paid on clearances of goods falling under heading No. 93.05 and parts
falling under heading Nos. 93.06 or 93.07 before the 1st day of
October, 2001 on the ground that such clearances are included in the aggregate
value of clearances under Sl. No. 1 of the said Table, shall not be admissible.
ANNEXURE
All goods specified in the First Schedule and the
Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than
the following, namely: -
(i)
all goods which are chargeable to nil rate of duty or are exempt from the
whole of the duty of excise leviable thereon:-
(ii)
all goods falling under heading No. 09.02;
(iii) all
goods falling under heading No. 21.06 and sub-heading Nos. 2101.10 and 2101.20;
(iv) all goods falling under Chapter 24
of the said First Schedule (other than unbranded chewing tobacco and
preparations containing chewing tobacco, falling under heading No. 24.04);
(v) all
goods falling under heading No. 25.04, and granite slabs and tiles, falling under
heading No. 25.05;
(vi)
sandalwood oil;
(vii) all
goods falling under heading No. 36.05;
(viii) all
goods falling under heading Nos. 37.01, 37.02, and sub-heading Nos. 3703.10;
(ix) strip of plastics intended for
weaving of fabrics or sacks, polyurethane foam and articles of polyurethane
foam; falling under Chapter 39 of the First Schedule;
(x) all goods falling under Chapter 51
of the First Schedule other than those falling under sub-heading Nos. 5105.30
and 5105.40 and heading Nos. 51.06, 51.07, 51.08, 51.09, 51.10 and 51.11 (except
woven fabrics of wool falling under heading Nos. 51.10 or 51.11) and under
51.12;
(xi) all goods falling under Chapter 52
of the First Schedule other than goods falling under heading No. 52.04;
(xii) all goods falling under Chapter 53 of the
First Schedule except goods falling under heading Nos. 53.01, 53.02, 53.04,
53.05, 53.08 (other than goods falling under sub-heading No. 5308.14), 53.11 (other than woven fabrics of
ramie);
(xiii) all
goods falling under Chapter 54 of the First Schedule except goods falling under
heading Nos. 54.01;
(xiv) all goods falling under Chapter 55 of the First
Schedule except goods falling under heading Nos. 55.05, 55.08 and shoddy yarn
manufactured from used or new rags falling under heading No. 55.09 or 55.10;
(xv) all goods falling under Chapter 56 of the
First Schedule except goods falling under heading Nos. 56.01, 56.02, 56.03,
56.04, 56.05, chenille yarn falling under sub-heading No. 5600.00, 56.07 (other
than of jute), 56.08 and 56.09;
(xvi) all
goods falling under Chapter 57 of the First Schedule;
(xvii) all goods falling under Chapter 58 of the First
Schedule except goods falling under heading Nos. 58.03, 58.06, 58.07, 58.08,
uncut grey (unprocessed) woven weft pile fabrics of cotton manufactured from
grey unprocessed cotton yarn falling under sub-heading No. 5801.21, unprocessed
woven pile of cotton falling under sub-heading Nos. 5801.21 and unprocessed
woven pile fabric of man-made fibres falling under sub-heading No. 5801.31,
fabrics of cotton or man-made
fibres falling under sub-heading No. 5802.51, and unprocessed cotton terry
towelling fabrics falling under sub-heading No. 5802.21;
(xviii) all goods falling under Chapter 59 of the
First Schedule except goods falling under Heading Nos. 59.01, 59.05, 59.06,
59.08, 59.09,
59.10, 59.11 and textile fabrics coated or laminated with preparations of
low-density polyethylene;
(xix) all goods falling under Chapter 60 of the First
Schedule except goods falling under sub-heading No. 6002.10 and fabrics of
cotton man-made fibres not subjected to any process falling under heading Nos.
60.01 or 60.02;
(xx) omitted;
(xxi) blankets of wool falling under Chapter 63 of the First
Schedule;
(xxii) aluminium circles, whether or not trimmed, falling under Chapter
76 of the First Schedule;
(xxiii)
(A) All goods falling under-
(a) heading No. 74.03, excluding the following goods falling under
sub-heading No.7403.21,namely:-
(i) cast brass bars/rods of a length not exceeding three feet,
(ii) cast brass bars/rods of a length not exceeding ten feet used in
the factory of production for making wires falling under sub-heading No.
7408.29;
(iii) copper flats of a weight not exceeding two kilograms used for
making copper strips falling under heading No. 74.09;
(iv) brass billets weighing upto five kilograms;
(b) heading No. 74.09 (excluding copper strips produced from copper
flats of a weight not exceeding two kilograms),
(c) sub-heading Nos. 7407.11, 7407.12, 7408.11, 7408.21; and
(B) copper circles, whether or not trimmed.
(xxiv) ball or roller bearings falling under Chapter 84 of the First
Schedule;
(xxv) all goods falling
under heading Nos. 87.01, 87.02, 87.03, 87.04, 87.05, 87.06 and 87.11 [other
than powered cycles and powered cycle rickshaw (�powered cycle� or powered
rickshaw means a mechanically propelled cycle or, as the case may be,
mechanically propelled cycle rickshaw, which may also be peddled, if any
necessity arises for so doing];
(xxvi) all goods falling under heading Nos. 91.01 or 91.02;
(xxvii) all goods falling under:
a) heading Nos. 93.02, 93.03, 93.04 [except air guns, air
rifles and air pistols which are exempt from the provisions of the Arms Act,
1959 (54 of 1959)];
b) heading Nos. 93.06 and 93.07 (except parts
falling under heading Nos. 93.06 or 93.07);
(xxviii) all goods falling under sub-heading Nos.
9605.10.
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