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Exemption in case of first clearance of specified goods upto Rs. 100
Lakhs provided manufacturer not availing CENVAT and total clearance not
exceeding Rs. 3 crores in preceding financial year
Notification No. 8 dated 1st March 2001 (As amended by 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. 8 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. 8/2000-Central Excise, dated 1st
March 2000, published in the Gazette of India vide number G.S.R. 186(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 the
aggregate of, -
(i)
the duty of excise specified thereon in the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986); and
(ii) the
special duty of excise specified thereon in the Second Schedule to the said
Central Excise Tariff Act,
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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Sl. 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);
b) articles of apparel, knitted or crocheted,
falling under Chapter 61 of the said First Schedule; or
bb)
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
c) goods specified at S. No. 9 to 81 in the Table
appended to the notification No. 10/2002-Central Excise, dated the 1st March,
2002, 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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Nil
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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 subject to the following conditions, namely: -
(i)
A manufacturer has the option not to avail the exemption contained in
this notification and instead pay the normal rate of duty on the goods cleared
by him. Such option shall be exercised before effecting his first clearances at
the normal rate of duty. Such option 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 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 paragraph 3
of this notification) till the date of exercising the option;
(iii)
The manufacturer shall not avail the credit of duty on inputs under rule
3 or rule 11 of the CENVAT Credit Rules, 2001, paid on inputs used in the
manufacturer of the specified goods cleared for home consumption, the aggregate
value of first clearances of which, as calculated in the manner specified in the
said Table does not exceed rupees one hundred lakhs.
(iv) The
manufacturer also does not utilise the credit of duty on capital goods under
rule 3 or rule 11 of the said rules, paid on capital goods, for payment of duty,
if any, on the aforesaid clearances, the aggregate value of first clearances of
which does not exceed rupees one hundred lakhs, as calculated in the manner
specified in the said Table.
(v) 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.
(vi) 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.
(vii) 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 purpose 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 this exemption in terms of paragraph 4;
(c)
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;
(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 nil rate of duty under Sl. No. 1 of the said Table for the
financial year 2001-2002.
Provided further that the clearances 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 specified goods bearing a brand name or trade name, whether
registered or not, of another person, except in the following cases: -
(a) where
the 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 or 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. Manufacturers, whose
aggregate value of clearances of the 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
Chapter X of the said rules;
(b) where
the specified 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� means a brand name or a trade name, whether
registered or not, that is to say, a 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
the 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), the value 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 Porcelainware or
both, where a manufacturer gets Chinaware or Porcelainware 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 Porcelainware 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 the aggregate of duty of excise specified in the First
Schedule to the Central Excise Tariff Act, 1985(5 of 1986) and the special duty
of excise specified in the Second Schedule to the said Central Excise Tariff Act
read with any relevant notification (other than this notification or a
notification in which exemption is based on the value or quantity of clearance)
issued under sub-section (1) of section 5A of the said Central Excise Act,1944;
(G) �clearances
for home consumption�, wherever referred to in this notification, shall
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 duty paid on clearances made before the 1st day of May 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;
(J) for the
purpose of goods falling under Chapter 62 of the said First Schedule, the
expression �manufacturer� shall include 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 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 No. 3703.10;
(ix) strips 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 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. 5606.00,
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 fabrics of cotton falling under sub-heading No. 5801.21
and unprocessed woven pile fabrics of man-made fibres falling under sub-heading
No. 5801.31, fabrics of cotton or man-made fibres falling under sub- headingNo.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);
(xxvii) all
goods falling under sub-heading Nos. 9605.10.
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