Notification No. 39 dated 31^st July 2001 (As amended by Notification No. 42 dated 21^st September 2001, Notification No. 45 dated 2^nd September 2002, Notification No. 60 dated 19^th December 2002, Notification No. 5 dated 13^th February 2003, Notification No. 16 dated 1^st March 2003)

In exercise of the power 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) and sub-section (3) of Section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) other than goods specified in the Annexure appended to this notification and cleared from a unit located in Kutch district of Gujarat from so much of the duty of excise or the additional duty of excise, as the case may be, leviable thereon under any of the said Acts as is equivalent to the amount of duty paid by the manufacturer of goods other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2001:

Provided that in the case of a unit having an original value of investment in plant and machinery installed in the factory below Rupees Twenty Crore on the date of commencement of commercial production in that unit, the exemption contained herein shall apply only for the first clearances upto an aggregate value not exceeding twice the value of such investment from the date of commencement of commercial production, in each year.

2.������� The exemption contained in this notification shall be given effect to in the following manner, namely:

(a)��� The manufacturer shall submit a statement of the duty paid other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2001, to the Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case may be, by the 7^th day of the next month in which the duty has been so paid.

(b)��� The Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, after such verification, as he may deem necessary, shall refund the amount of duty paid other than the amount of duty paid by utilization of CENVAT credit during the month under consideration to the manufacturer by the 15^th day of the next month.

������� Provided that such refund shall not exceed the amount of duty paid less the amount of the CENVAT credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of goods cleared under this notification.

(c)��� If there is likely to be any delay in such verification, the Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case my be, shall refund the amount on provisional basis by the 15^th day of the next month to the month under consideration, and thereafter may adjust the amount of refund by such amount as may be necessary in the subsequent refunds admissible to the manufacturer.

3.������� The exemption contained in this notification shall be subject to the following conditions, namely:

(i)���� It shall apply only to new industrial units, that is to say, units which are set up on or after the date of publication of this notification in the official Gazette but not later than the 31^st day of July, 2004;

(ii)��� In order to avail of this exemption, the manufacturer shall produce a certificate from a Committee consisting of the Chief Commissioner of Central Excise, Ahmedabad and the Principal Secretary to the Government of Gujarat, Department of Industry, to the jurisdictional Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case may be, that the unit in respect of which exemption is claimed is a new unit and has been set up during the time period specified in condition (i) above.

(iii)�� Before effecting clearances under this notification, the manufacturer shall also furnish a declaration regarding the original value of investment in plant and machinery installed in the factory as on the date of commencement of commercial production, to the Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case may be.

(iv)��� The manufacturer shall also produce a certificate from the said Committee confirming the original value of investment and such a certificate shall be produced within a period of one month from the date of commencement of commercial production, or such extended period as the said Assistant Commissioner or Deputy Commissioner may allow.

(v)���������� In case on the basis of such certification, or otherwise, the original value of investment in plant and machinery,

(a)��� is found to be less than Rupees Twenty Crore but was declared to be Rupees Twenty Crore or more, the manufacturer shall be liable to pay back the entire amount of duty exemption availed under the notification alongwith interest at the rate of twenty four percent per annum as if no exemption were available; or

(b)��� is found to be less than the declared value and was declared to be below Rupees Twenty Crore, the manufacturer shall be liable to pay duty on the goods cleared, if any, in excess of twice the actual value of original investment in each of the years during which exemption has been claimed under this notification alongwith interest at the rate of twenty four percent per annum, as if no exemption were available to those clearances under this notification.

(vi)��� The exemption shall apply for period not exceeding five years from the date of commencement of commercial production by the unit.

4.���� Nothing contained in this notification shall apply to a manufacturer or a factory availing of exemption under any of the following notifications, namely:

(a)��������� Notification No. 8/2003-CE dated the 1^st of March, 2003;

(b)��������� Notification No. 9/2003-CE dated the 1^st of March, 2003; and

ANNEXURE

1.������� Goods falling under Chapter 24 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

2.������� The following goods, falling under the said First Schedule to the Central Excise Tariff Act, 1985, namely:

(a)��������� Candles;

(b)��������� Footwear of a retail sale price not exceeding Rs. 125 per pair;

(c)���������� Tableware and kitchenware of glass;

(d)��������� Imitation jewellery;

(e)��������� Monochrome television receivers;

(f)Vacuum and gas-filled bulbs of retails sale price not exceeding Rs. 20 per bulb;

(g)��������� Sunglasses for correcting vision;

(h)��������� Watches and clocks of retail sale price not exceeding Rs. 500 per piece;

(i)Rubberised coir mattresses;

(j)Toothbrushes;

(k)��� Kerosene, that is to say, any hydrocarbon oil (excluding mineral colza oil and white spirit) which has a smoke content of 18mm or more [determined in the apparatus known as smoke point lamp in the manner included in the Bureau of Indian Standards Specification ISI: 1448 (P.31) � 1968 as in force for the time being) and is ordinarily used as an illuminate in oil burning lamps;

(l)���� Liquefied petroleum gases and other gaseous hydrocarbons other than natural gas, ethylene, propylene, butylenes and butadiene;

(m)�������� Compressed Natural Gas (CNG);

(n)��������� Cotton sewing thread, not containing synthetic staple fibres;

(o)��������� Cotton yarn, not containing synthetic staple fibres;

(p)��������� Diesel engines upto 10 HP; and

(q)��������� Goods specified in the Table annexed to notification No. 11/2001-Central Excise dated the 1^st of March 2001.

3.������� Goods specified in the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).