|
Exemption to Specified Textile Goods from Leviable Excise Duty
Central Excise Notification No. 7 dated 1st March 2003
In
exercise of the powers conferred by sub-section (1) of section 5A of the Central
Excise Act, 1944 (1 of 1944) read with sub-section (3) of section 3 of the
Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of
1957), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts excisable goods of the description
specified in column (3) of the Table below and falling within the Chapter,
heading No. or sub-heading No. of the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Central Excise
Tariff Act), specified in the corresponding entry in column (2) of the said
Table, -
(a)
from so much of the duty of excise specified thereon under the First
Schedule (hereinafter referred to as the First Schedule) to the Central Excise
Tariff Act, as is in excess of the amount calculated at the rate specified in
the corresponding entry in column (4) of the said Table;
(b)
in respect of goods specified against S.Nos. 16 and 19, from the whole of
the Special duty of excise leviable thereon under the Second Schedule to the
Central Excise Tariff Act; and
(c)
from so much of the duty of excise specified in the First Schedule to the
said Additional Duties of Excise (Goods of Special Importance) Act (herein after
referred to as the First Schedule (GSI)), as is in excess of the amount
calculated at the rate specified in the corresponding entry in column (5) of the
said Table.
Explanation:
For the purposes of this
notification, the rates specified in columns (4) and (5) of the said Table are
ad valorem rates, unless otherwise specified.
Table
|
S.
No.
|
Chapter
or heading No. or sub-heading No.
|
Description
of goods
|
Rate
under the First Schedule
|
Rate
under the First Schedule (GSI)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
|
1
|
53.04, 53.05, 53.08 or 55.10
|
Sisal and manila fibres and yarns thereof
or yarn of artificial staple fibre of heading 55.10, if, in or in relation
to manufacture of which, no process is ordinarily carried on with the aid
of power
|
Nil
|
-
|
|
2
|
52.07, 52.08 or 52.09
|
Cotton fabrics processed without the aid of
power or steam
Explanation:
For the purposes of this exemption, cotton fabric subjected to any one
or more of the following processes with the aid of power, shall be
deemed to have been processed without aid of power or steam, namely:-
(a)
lifting of water to overhead tanks or emptying in underground tanks or
handling of chemicals such as acids, chlorine, caustic soda;
(b)
mixing or stirring of dyes, kerosene, caustic soda, gum paste and
emulsion, etc., by stirrer; or
(c)
colour fixation by passing steam or applying sodium silicate.
|
Nil
|
Nil
|
|
3
|
5406.21, 5406.22, 5406.23, 5406.29,
5407.21, 5407.22, 5407.23 5407.29, 55.11, 55.12, 55.13 or 55.14
|
Woven fabrics of synthetic or artificial
staple fibre or filament yarn, processed without the aid of power or
steam, with or without the use of machines, excluding, -
(a)
fabrics of polyester filament yarn containing cotton and polyester staple
fibre in which the proportion of polyester staple fibre or filament yarn
or both is less than 70% by weight of the total fibre content;
(b)
fabrics containing only polyester and cotton in which the proportion of
polyester staple fibre is less than 70% by weight of total fibre content;
and
(c)
fabrics containing only polyester staple fibre and any one or more of the
following fibres, namely, cotton, ramie and artificial fibre in which the
proportion of polyester staple fibre is more than 40% but less than 70% by
weight of total fibre content.
|
Nil
|
Nil
|
|
|
|
|
|
|
|
4.
|
51.10, 51.11, 5406.21, 5406.22, 5406.23,
5406.29, 5407.21, 5407.22, 5407.23 or 5407.29
|
Fabrics, woven on handlooms and processed
without the aid of power or steam
|
Nil
|
Nil
|
|
5
|
56.07 or 56.09
|
All goods made without the aid of power
|
Nil
|
-
|
|
6
|
58.01, 58.02 or 58.06
|
All goods in or in relation to the
manufacture of which no process is ordinarily carried on with the aid of
power or steam
|
Nil
|
Nil
|
|
7
|
60.01 or 60.02
|
Knitted or crocheted fabrics, processed
without the aid of power or steam
|
Nil
|
Nil
|
|
8
|
Any Chapter
|
Fabrics or garments manufactured by a
charitable institution
Explanation:
For the purposes of this exemption �charitable institution� means a
non-profit institution or establishment or organization constituted
solely for charitable purposes such as provision of assistance,
rehabilitation, education and medical and other relief to women,
children, poor, orphans, aged, distress, sick, physically or mentally
disabled.
|
Nil
|
Nil
|
|
9
|
5506.20
|
Polyester staple fibres, carded, combed or
otherwise processed for spinning, containing cotton (not containing any
other textile material) and in which the proportion of polyester staple
fibre is less than 70 per cent by weight of total fibre content
manufactured by a factory owned by the Khadi and Village Industries
Commission or any organization approved by the said Commission:
Provided that the
manufacturer produces at the time of clearance a certificate from an
authorized officer of the said Commission, that these fibres shall be hand
spun into yarns by a factory owned by the said Commission or any
organization approved by the said Commission, for used only in the
manufacture of Poly Vastra, that is to say, any cloth, containing cotton
and polyester, woven on handloom from yarns hand spun in India
|
Nil
|
-
|
|
10
|
5105.10
|
Carded wool, popularly known as �lefa�
intended for making hand spun yarn of upto 10 counts
|
Nil
|
-
|
|
11
|
51.06
|
Yarn of wool of counts upto 10 in plain
(straight) reel hanks, whether single or multiple (folded) and intended
for manufacturing carpets
|
Nil
|
-
|
|
12
|
52.05 or 52.06
|
Cotton waste yarn of upto 2 counts
manufactured from cotton waste on condenser card machines, in plain
(straight) reel hanks
|
Nil
|
-
|
|
13
|
52
|
Cotton yarn of sub heading Nos. 5205.11 and
5205.19 and sewing thread of sub-heading No. 5204.10, not containing any
other textile material
|
8%
|
-
|
|
14
|
5004.19, 5106.11, 5106.12, 5106.13,
5107.11, 5107.12, 51.09, 52.04, 5205.11, 5205.19, 5206.11, 5206.12,
5306.11, 5306.19, 5308.12, 5308.13, 5308.14, 5308.19, 54.01, 5402.10,
5402.31, 5402.39, 5402.41, 5402.49, 5402.51, 5402.59, 5402.61, 5402.69,
54.03, 54.04, 54.05, 55.08, 55.09 and 55.10
|
Yarn and sewing thread
|
12%
|
-
|
|
15
|
51.06, 51.07, 5205.11, 5205.19, 5206.11,
5206.12, 55.09 and 55.10
|
The
following goods purchased by a registered Apex Handloom Co-operative
Society, the National Handloom Development Corporation or a State
Government Handloom Development Corporation, and the payment for which is
made by cheque drawn by such Co-operative Society or Corporation, as the
case may be, on its own bank account, namely: -
(a) yarn of wool falling under heading Nos.
51.06 and 51.07;
(b) cotton yarn (not containing synthetic
staple fibres), supplied in cross reel hanks and falling under sub heading
Nos. 5205.11, 5205.19, 5206.11or 5206.12;
(c) cotton yarn, containing polyester
staple fibre and not containing any other textile material, in which the
proportion of polyester staple fibre is more than 40% by weight of the
total fibre content, and falling under sub- heading Nos. 5206.11or
5206.12;
(d)
yarn of counts not exceeding 25 of artificial staple fibre, not containing
synthetic staple fibres and supplied in cross reel hanks and falling under
heading Nos. 55.09 or 55.10;
(e) yarn of polyester staple fibre
containing cotton (not containing any other textile material) and in which
the proportion of polyester staple fibre is less than 70 per cent. by
weight of the total fibre content and falling under heading Nos 55.09 or
55.10;
(f) yarn of polyester staple fibre
containing cotton, ramie or artificial staple fibre or any one or more of
these fibres (not containing any other textile material) and in which the
proportion of polyester staple fibre is less than 70 per cent. by weight
of the total fibre content falling under heading Nos. 55.09 or 55.10; or
(g) yarn of artificial staple fibre
containing polyester staple fibres (not containing any other textile
material) and in which the proportion of polyester staple fibre is more
than 40% by weight of the total fibre content and in or in relation to the
manufacture of which any process is ordinarily carried on with the aid of
power falling under heading Nos. 55.09 or 55.10:
Provided
that the manufacturer
produces at the time of clearance the certificate from an authorized
officer of the said society or corporations, as the case may be, that the
yarn is going to be used only on handloom.
|
Nil
|
-
|
|
16
|
52, 54 or 55
|
Yarn consumed within the factory of
production in the manufacture of multiple (folded) or cabled yarn, whether
or not dyed, printed, bleached or mercerised, and such multiple (folded)
or cabled yarn is purchased by a registered Apex Handloom Co-operative
Society, the National Handloom Development Corporation or a State
Government Handloom Development Corporation, and the payment for which is
made by cheque drawn by such Co-operative Society or Corporation, as the
case may be, on its own bank account
|
Nil
|
-
|
|
17
|
5205.11, 5205.19, or 5206.12
|
Cotton yarn, containing polyester staple
fibre and not containing any other textile material, in which the
proportion of polyester staple fibre is more than 40% by weight of the
total fibre content, purchased by a factory owned by the Khadi and Village
Industries Commission or any organization approved by the Khadi and
Village Industries Commission and the payment for which is made by KVIC or
such organisation approved by KVIC, as the case may be, on its own bank
account:
Provided that, -
(i)
these goods are purchased by a factory owned by the Khadi and Village
Industries Commission or any organization approved by the said Commission
and the payment for such goods is made by the cheque drawan by the said
commission or such organization approved by the said Commission, as the
case may be, on its own bank account; and
(ii)
the manufacturer produces at the time of clearance a certificate from an
authorized officer of the said Commission, that the yarn shall be used
only in the manufacture of Poly Vastra, that is to say, any cloth,
containing cotton and polyester, woven on handloom from yarns hand spun in
India.
|
Nil
|
-
|
|
18
|
55.09
|
Yarn of polyester staple fibre containing
cotton (not containing any other textile material) and in which the
proportion of polyester staple fibre is less than 70 per cent. by weight
of the total fibre content, manufactured or purchased by a factory owned
by the Khadi and Village Industries Commission or any organization
approved by the Khadi and Village Industries Commission:
Provided that, -
(i)
these goods are purchased by a factory owned by the Khadi and Village
Industries Commission or any organization approved by the said Commission
and the payment for such goods is made by the cheque drawan by the said
commission or such organization approved by the said Commission, as the
case may be, on its own bank account; and
(ii)
the manufacturer produces at the time of clearance a certificate from an
authorized officer of the said Commission, that the yarn shall be used
only in the manufacture of Poly Vastra, that is to say, any cloth,
containing cotton and polyester, woven on handloom from yarns hand spun in
India.
|
|
|
|
19
|
54.02
|
Polyester filament yarn (other than
textured) of denierage above 750 and of tenacity exceeding 6.5 grams per
denier
|
16%
|
-
|
|
20
|
5402.10, 5402.41, 5402.49, 5402.51,
5402.59, 5402.69
|
Nylon filament yarn or polypropylene
multifilament yarn of 210 deniers with tolerance of 6 per cent provided no
credit under rule 3 or rule 11 of the CENVAT Credit Rules, 2002, has been
taken in respect of the capital goods used exclusively or inputs used in
the manufacture of these goods
|
Nil
|
-
|
|
21
|
59.01, 59.02, 59.03, 5907.11, 5907.12
|
All goods
|
16%
|
Nil
|
|
22
|
6001.11, 6001.21, 6001.91, and 6002.92
|
Knitted or crocheted fabrics of cotton, not
containing any other textile material
|
8%
|
Nil
|
|
23
|
51.10, 51.11, 52.07, 52.08, 52.09, 54.06,
54.07, 55.11, 55.12, 55.13, 55.14, 5801.11, 5801.12, 5801.21, 5801.22,
5801.31, 5801.32, 5802.21, 5802.22, 5802.31, 5802.32, 5802.51, 5802.52,
58.03, 5804.11, 5804.12, 6001.11, 6001.12, 6001.21, 6001.22 6001.91,
6001.92, 6002.10, 6002.20, 6002.30, 6002.42, 6002.43, 6002.92, 6002.93
|
All fabrics
|
8%
|
2%
|
|
24
|
51.12, 53.09, 53.10, 53.11, 5801.91,
5801.92 5802.41, 5802.42, 5804.19, 58.06, 58.09, 6001.19, 6001.29,
6001.99, 6002.41, 6002.49, 6002.91 and 6002.99
|
All fabrics
|
10%
|
-
|
|
25
|
51, 52, 53, 54 or 55
|
Fabrics woven on handlooms and processed,
by a factory owned by a State Government Handloom Development Corporation
or an Apex Handloom Co-operative Society approved, in either case, by the
Government of India on the recommendation of the Development Commissioner
of Handlooms, or by a factory owned by the Khadi and Village Industries
Commission or any organisation approved by the Khadi and Village
Industries Commission for the purpose of processing such fabrics
|
Nil
|
Nil
|
|
26
|
51.10, 51.11, 52.07, 52.08 or 52.09
|
Fabrics woven on handlooms, certified as
�khadi� by the Khadi and Village Industries Commission or by an
officer duly authorized in this behalf by the said Commission
|
Nil
|
Nil
|
|
27
|
52 or 55
|
Poly Vastra, that is to say, any cloth,
containing cotton and polyester, woven on handloom from yarns hand spun in
India and certified as Poly Vastra by an officer duly authorised in this
behalf by the Khadi and Village Industries Commission and processed by a
factory owned by the Khadi and Village Industries Commission or any
organisation approved by the Khadi and Village Industries Commission for
the purpose of processing of Poly Vastra
|
Nil
|
Nil
|
|
28
|
55.11, 55.12, 55.13 or 55.14
|
Fabrics woven on handlooms and processed
with the aid of power or steam by a factory owned by a State Government
Handloom Development Corporation or an Apex Handloom Cooperative Society
approved by Government of India for the development of Handlooms other
than the following, namely: -
(i)
fabrics containing only polyester and cotton in which the proportion of
polyester staple fibre is less than 70% by weight of total fibre content;
or
(ii)
fabrics containing only polyester staple fibre and any one or more of the
following fibres, namely, cotton, ramie and artificial fibre in which the
proportion of polyester staple fibre is more than 40% but less than 70% by
weight of total fibre content.
|
Nil
|
Nil
|
|
29
|
51.10, 51.11, 52.07, 52.08, 52.09, 5406.21,
5406.22, 5406.23, 5406.29, 5407.21, 5407.22, 5407.23 or 5407.29
|
Fabrics woven on handlooms and processed
with the aid of power or steam by a factory owned by a registered handloom
co- operative society or any organisation set up or approved by Government
for the purpose of development of handlooms
|
Nil
|
Nil
|
|
30
|
51.10 or 51.11
|
Fabrics woven on handlooms and processed by
an independent processor approved in this behalf by the Government of
India on the recommendation of the Development Commissioner for Handlooms
Explanation:
In this entry, for the purposes of the fabrics woven on handlooms,
�independent processor� means a manufacturer who is engaged
exclusively in the processing of fabrics with the aid of power and who
has no proprietary interest in any factory engaged in the spinning of
yarn of wool or weaving of woolen fabrics
|
Nil
|
Nil
|
|
31
|
5406.21, 5406.22, or 5406.29
|
Fabrics of polyester filament yarn
containing cotton and polyester staple fibre in which the proportion of
polyester staple fibre or filament yarn or both is less than 70% by weight
of the total fibre content and processed by a factory owned by a
registered handloom co-operative society or any organisation set up or
approved by the Government for the purpose of development of handlooms
|
Nil
|
Nil
|
|
32
|
52, 54 or 55
|
Fabrics
of cotton or man made fibres woven in a prison and subjected to further
process outside the prison by an independent processor or a composite mill
If, -
(i) a certificate to the effect that such
fabrics have been woven in a prison and have been sent for further
processing to an independent processor or a composite mill, outside the
prison is given by the Inspector General of the Prisons or an officer duly
authorised by him in this behalf in the Government of the State or the
Union territory, as the case may be;
(ii) a separate account is maintained in
respect of such fabrics by the said independent processor or a composite
mill; and
(iii)
the said independent processor or a composite mill produces a certificate
or evidence to the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, within a period of
ninety days or such extended period as may be permitted by the
Commissioner of Central Excise, to the effect that the said fabrics have
been returned after processing to the prison from which the fabrics were
received.
|
Nil
|
Nil
|
|
33
|
5404.10
|
The following goods, namely: -
(a)
Monofilament of high density polyethylene or polypropylene; and
(b)
Nylon monofilament yarn, of denierage 210, 330, 420, 630, 840, 1050, 1260
or 1680, with tolerance of 4 per cent.
Provided that no
credit under the CENVAT Credit Rules, 2002, has been taken in respect of
the capital goods used exclusively or inputs used in the manufacture of
these goods.
|
Nil
|
-
|
|
34
|
53, 59 or 63
|
Rot proofed jute products, laminated jute
products and fire resistant jute products
|
Nil
|
-
|
|
35
|
53.10, 58.01, 58.02, 58.06, 6301.90 or
6305.10
|
Goods of jute
|
Nil
|
-
|
|
36
|
56.02
|
Jute felt
|
Nil
|
-
|
|
37
|
5806.39
|
The following goods, namely: -
(a) Hair belting of wool;
(b) Strips of jute made from fabrics on
which the appropriate duty of excise under the First Schedule has already
been paid and intended for supply to the Indian Army.
|
Nil
|
-
|
|
38
|
53 or 56
|
Sisal and manila twist yarn, thread, ropes
and twine, all sorts, if consumed within the factory in which it is
produced for the manufacture of sisal and manila products falling under
Chapter 53, 56, 57 or 63 of the First Schedule
|
Nil
|
-
|
|
39
|
59.03
|
Fabrics of jute, impregnated, coated,
covered or laminated with plastics
|
Nil
|
Nil
|
|
40
|
56.07
|
All goods (other than dipped cords falling
under sub-heading 5607.90 of the First Schedule).
|
Nil
|
-
|
|
41
|
61
|
Articles of apparel and clothing
accessories of cotton, knitted or crocheted, not containing any other
textile material
|
8%
|
-
|
|
42
|
61, 62 or 63 (other than 6307.10)
|
All articles of apparel and clothing
accessories and other made up textile articles (other than articles of
apparel and clothing accessories of cotton, knitted or crocheted, not
containing any other textile material)
|
10%
|
-
|
|
43
|
61 and 62
|
Article of apparel or clothing accessories
manufactured or got manufactured for personal use and not intended for
sale
Explanation:
This exemption
shall also apply to such article of apparel or clothing accessories
knitted or stitched by a tailor from material supplied by the customer
for the personal use of the customer.
|
Nil
|
-
|
|