Fixation of effective duty of excise and additional duty of excise in
respect of specified processed textile fabrics
Fixation of Effective Duty of Excise and
Additional Duty of Excise in respect of Specified Processed Textile Fabrics
Central
Excise Notification No. 14 dated 1st March 2002
(As amended by Corrigendum dated 1st March 2002, Notification No. 26
dated 27th April 2002, Notification No. 33 dated 18th
June 2002, Notification No. 37 dated 3rd July 2002, Notification
No. 40 dated 14th August 2002, Notification No. 47 dated 6th
September 2002, Notification No. 3 dated 6th January 2003, Notification
No. 16 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 or 1957) and in supersession of the
notification of the Government of India in the Ministry of Finance (Department
of Revenue), No. 11/2001-Central Excise, dated the 1st March, 2001, published
in the Gazette of India vide number G.S.R. 136 (E), dated the 1st March, 2001,
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 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), specified in the corresponding entry in column (2) of the said Table,
from so much of the aggregate of, �
(a)��������� the duty of excise specified in the First
Schedule to the said Central Excise Tariff Act; and
(b)��������� the duty of excise specified in the
First Schedule to the said Additional Duties of Excise (Goods of Special
Importance) Act,
(hereinafter referred to as the
�aggregate duty�) as is in excess of an amount calculated at the rate specified
in the corresponding entry in column (4) of the said Table, subject to the
relevant conditions specified below the said Table, and referred to in the
corresponding entry in column (5) of the said Table:
Provided that
the aggregate duty of sixteen per cent. ad
valorem leviable on the excisable goods specified in S. No. 9 of the Table
below shall be apportioned equally between the duty leviable under the said
Central Excise Act and the said Additional Duties of Excise (Goods of Special
Importance) Act:
Provided further that -
(a)��� during the period commencing from the 1st
day of March, 2002 and ending on the 28th day of February, 2005, the aggregate
duty in respect of the goods specified against S. Nos. 2, 3, 4, 5, 6, 7, 8, 11,
13, 15, 16 and 17, shall be further exempted in excess of three-fourths of the
rate specified in the corresponding entry in column (4) of the said Table; and
(b)��� during the period specified in clause (a)
above, the duty leviable on the excisable goods specified therein shall be
apportioned in the ratio 2:1 between the duty leviable under the said Central
Excise Act and the said Additional Duties of Excise (Goods of Special
Importance) Act.
2.������� This notification shall have effect upto and inclusive of
31st day of March 2003.���������
Explanation
I. - For the purposes of this
notification, the rates specified in column (4) of the said Table are ad
valorem rates, unless otherwise specified.
Explanation
II. - For the purposes of the
conditions specified below, textile yarns or fabrics shall be deemed to have been
duty paid even without production of documents evidencing payment of duty
thereon.
Explanation
III. - For the purposes of the exemption
under S.No. 5 of the Table, -
(i)��� the expression �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 cotton or weaving of cotton fabrics; and
(ii)�� the value of the fabrics shall be equal to 40%
of the value determined under section 4 of the Central Excise Act, 1944.
Explanation
IV: Omitted
Explanation V:
For the removal of doubt, it is hereby clarified that once a manufacturer opts
to pay duty in respect of goods specified against S. No. 2, 11, 13 or 15, as
the case may be, of the Table below, he shall do so in respect of all the
clearances of the said goods from his factory or warehouse, as the case may be,
specified against each of the aforesaid S. No. till such time he opts not to
pay duty.
Explanation VI: For the removal of doubt, it is
hereby clarified that Condition No. 1 or 3, as the case may be, shall be deemed
to have been fulfilled even if CENVAT credit in respect of capital goods, which
are not used exclusively in the manufacture of exempted goods, is availed under
the CENVAT Credit Rules, 2002.
Explanation
VII: In this notification, -
(1) For the removal of doubt, it is
hereby clarified that in Explanation II and in condition Nos.1 and 2
specified below the Table, the expression "textile yarns" is intended
to include therein "textile fibres" also:
(2) For the purposes of the exemption to
processed textile fabrics, specified in the Table against any of the S. Nos.
3,4,6,7,8,13 and 16, manufactured by a composite mill (i.e., a manufacturer
engaged in processing of fabrics along with the spinning of yarn from fibres
and weaving or knitting or crocheting of fabrics within the same factory), or
by a manufacturer engaged in processing of fabrics along with weaving or
knitting or crocheting of fabrics within the same factory, the condition
specified in column (5) against each of the said respective S. Nos. is intended
to have been satisfied if the said processed fabrics are manufactured from
textile fibres or yarns, as the case may be, on which the appropriate duty of
excise leviable under the First or the Second Schedule to the said Central
Excise Tariff Act read with any notification for the time being in force or the
additional duty of customs leviable under section 3 of the Customs Tariff Act,
1975, as the case may be, has been paid;
(3) This Explanation shall have effect as
if it had always been the part of this notification.
TABLE
|
S.No.
|
Chapter or
heading No., or sub-heading No.
|
Description
|
Rate of
duty
|
Condition
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
|
1
|
5110.10, 5111.10, 5207.20,
5208.20, 5209.10, 5406.10, 5407.10, 5511.10, 5512.10, 5513.10, 5514.10,
5801.11 or 5802.51
|
Woven fabrics, not subjected to
any process
|
Nil
|
1
|
|
2
|
5110.10, 5111.10, 5207.20,
5208.20, 5209.10, 5406.10, 5407.10, 5511.10, 5512.10, 5513.10, 5514.10,
5801.11 or 5802.51
|
Woven fabrics, not subjected to
any process
|
16%
|
2
|
|
3
|
5207.10 or 5208.10
|
Denim fabrics, whether or not
processed
|
16%
|
2
and 5
|
|
4
|
51.10, 51.11, 52.07, 52.08, 52.09,
54.06, 54.07, 55.11, 55.12, 55.13, 55.14, 5801.12, 5801.22, 5801.32, 5802.22,
5802.32, 5802.52
|
Woven fabrics, subjected to any
process
|
16%
|
5
|
|
4A
|
Omitted
|
|
|
6
|
|
5
|
52.07,52.08 or 52.09
|
Cotton fabrics woven on handlooms
and processed with aid of power or steam by an independent processor approved
in this behalf by the Government of India on the recommendation of the
Development Commissioner for Handlooms.
|
16%
|
-
|
|
5A.
|
Omitted
|
|
|
|
|
6
|
Omitted
|
|
|
|
|
7
|
58.03
|
All goods
|
16%
|
2
and 5
|
|
8
|
5804.11 or 5804.12
|
All goods
|
16%
|
2
and 5
|
|
9
|
59.01
|
All goods
|
16%
|
-
|
|
10
|
6001.11, 6001.21, 6001.91, 6002.42
or 6002.92
|
Knitted or crocheted fabrics of
cotton, not subjected to any process
|
Nil
|
1
|
|
11
|
6001.11, 6001.21, 6001.91, 6002.42
or 6002.92
|
Knitted or crocheted fabrics of
cotton, not subjected to any process
|
16%
|
2
|
|
12
|
6001.11, 6001.21, 6001.91, 6002.42
or 6002.92
|
Knitted or crocheted fabrics of
cotton, subjected to any process
|
Nil
|
3
|
|
13
|
6001.11, 6001.21, 6001.91, 6002.42
or 6002.92
|
Knitted or crocheted fabrics of
cotton, subjected to any process
|
16%
|
4
|
|
14
|
6001.12, 6001.22, 6001.92,
6002.10, 6002.20, 6002.30, 6002.43 or 6002.93
|
Knitted or crocheted fabrics,
other than of cotton, not subjected to any process
|
Nil
|
1
|
|
15
|
6001.12, 6001.22, 6001.92,
6002.10, 6002.20, 6002.30, 6002.43 or 6002.93
|
Knitted or crocheted fabrics, other than of cotton, not subjected to
any process
|
16%
|
2
|
|
16
|
6001.12, 6001.22, 6001.92,
6002.20, 6002.30, 6002.43 or 6002.93
|
Knitted or crocheted fabrics,
other than of cotton, subjected to any process
|
16%
|
5
|
|
17
|
52, 54 or 55
|
Woven fabrics subjected to the process of calendaring or
decatising or both, on job-work basis, in a factory which does not have the
facilities (including plant and equipment) for carrying out any other
process, provided no credit under rule 3 or 11 of the CENVAT Credit Rules,
2002 has been taken.
Explanation: For the purposes of this
exemption, the value of such fabrics shall be the job-work charges for
calendaring or decatising or both, as the case may be, in respect of such
fabrics.
|
16%
|
-
|
|
Condition
No.
|
Conditions
|
|
(1)
|
(2)
|
|
1
|
If made from textile yarns on which the
appropriate duty of excise leviable under the First Schedule or the Second Schedule
to the said Central Excise Tariff Act read with any notification for the time
being in force or the additional duty of customs leviable under section 3 of
the Customs Tariff Act, 1975, as the case may be, has been paid and no credit
of the duty paid on inputs or capital goods has been taken under rule 3 or
rule 11 of the CENVAT Credit Rules, 2002.
|
|
2
|
If made from textile yarns on which the
appropriate duty of excise leviable under the First Schedule or the Second
Schedule to the said Central Excise Tariff Act read with any notification for
the time being in force or the additional duty of customs leviable under
section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid.
|
|
3
|
If no credit of the duty paid on inputs or capital goods
has been taken under rule 3 or rule 11 of the CENVAT Credit Rules, 2002.
|
|
4
|
If made from knitted or crocheted textile
fabrics of cotton, whether or not processed, on which the appropriate duty of
excise leviable under the First Schedule to the said Central Excise Tariff
Act and the Additional Duties of Excise (Goods of Special Importance) Act,
read with any notification for the time being in force, or the additional
duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as
the case may be, has been paid.
|
|
5
|
If
made from textile fabrics, whether or not processed, on which the appropriate
duty of excise leviable under the First Schedule to the said Central Excise Tariff
Act and the Additional Duties of Excise (Goods of Special Importance) Act,
read with any notification for the time being in force or the additional duty
of customs leviable under section 3 of the Customs Tariff Act, 1975, as the
case may be, has been paid.
|
|
6
|
The exemption shall apply only upto
that much quantity of cotton fabrics cleared by a processor from his factory
in respect of which the aggregate amount of job-charges for such stentering
does not exceed fifteen lakh rupees as computed in the manner specified in
the Explanation below:
Provided that if a processor
has more than one open-air stenter in his factory or has more than one
factory engaged in the process of open-air stentering, the exemption shall
apply to the aggregate quantity of cotton fabrics cleared therefrom.
Explanation: For the
purposes of this condition, for computing the limit of fifteen lakh rupees on
account of the aggregate amount of job-charges, the amount of job-charges for
open-air stentering in respect of the clearances of cotton fabrics from a
factory or more than one factory of a processor, as the case may be, already
effected during the period commencing from the 1st day of April, 2002 and
ending with the 17th day of June, 2002, shall be taken ino account; but in case,
the textile processor does not undertake any job work and subjects the said
fabrics to open-air stentering on his own behalf, the exemption shall be
available as if he has undertaken stentering on job-work basis and for the
purposes of computing the limit of fifteen lakh rupees, the job-charges shall
be deemed to be the difference between the value of the stentered fabrics and
the value (cost) of grey fabrics.
|
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|