{(As amended by Notification No. 8 dated 1st March 2003 (NT)}
In exercise of the powers conferred
by rule 11 of the CENVAT Credit Rules, 2001, the Central Government hereby
declares the following inputs (hereinafter referred to as the "declared
inputs") and the final products filling within the First Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the
said First Schedule), as specified in the Table below namely:
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Inputs
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Final products
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(i)
Fabrics falling under Chapter 50, 51, 52, 53, 54,55, 58, 59 or 60 of the
First Schedule.
(ii) Other raw materials, parts, components, trimmings and embellishments,
consumables and packaging materials falling within the said First Schedule.
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Articles
of apparel and clothing accessories, not knitted or crocheted, falling under
Chapter 62 of the said First Schedule.
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2.������� The
Central Government further declares that -
(i)the duty of excise under the Central Excise
Act, 1944 (1 of 1944); or
(ii)���������� the
additional duty under section 3 of the Customs Tariff Act, 1975 (51 of 1975),
(hereinafter referred to as the declared duty) shall be
deemed to have been paid on the declared inputs and the same shall be equivalent
to the amount calculated at the rate of 20 per cent. of the duty of excise
leviable under the Central Excise Act, 1944 (1 of 1944) read with any
notification for the time being in force, on the final products declared herein
and credit of the declared duty so deemed to have been paid shall be allowed to
the manufacturer of the final products, without production of documents
evidencing payment of duty on the declared inputs, at the time of clearance of
the said final products.
3.���� The
credit of declared duty allowed in respect of the declared inputs shall be
utilized towards payment of duty of excise leviable under the said Central
Excise Act, on the said final products.
Provided that the credit of declared duty in respect of the declared
inputs used in the final products cleared for export under bond shall be
allowed to be utilized towards payment of duty of excise on the final products
cleared for home consumption or for export on payment of duty and, where for
any reason, such adjustment is not possible, by refund to the manufacturer
subject to such safeguards, conditions and limitations as may be specified by
the Central Government in the Official Gazette:
Provided further that no credit or refund of such declared duty shall be allowed
if the manufacturer avails of drawback allowed under the Customs and Central
Excise Duties (Drawback) Rules, 1971 or claims rebate of duty under rule 18 of
the Central Excise (No. 2) Rules, 2001, in respect of such duty.
4.���� The
provisions of this notification shall not apply to a manufacturer who avails of
any credit under rule 3 of the CENVAT Credit Rules, 2001, in respects of the
declared inputs and the declared inputs are used in the manufacture of the said
final products.
Explanation: It is clarified that the CENVAT credit in respect of capital goods,
under rule 3 of the CENVAT Credit Rules, 2001, shall be allowed to the said
manufacturer subject to the conditions as specified under rules 4 of that
rules.
5.���� The
provisions of this notification shall not apply to final products on which duty
of excise leviable under the Central Excise Act, 1944 (1 of 1944), has not been
levied or paid or has been short-levied or short-paid or erroneously refunded
by reason of fraud, collusion or any willful mis-statement or suppression of
facts, or contravention of any provision of the said Central Excise Act or of
the rules made thereunder with intent to evade payment of duty.
6.���� This notification shall come
into effect on and from the 1st day of July, 2001 and shall
remain in force upto and inclusive of the 31st day of March, 2003.
Explanation I: For the purpose of this notification, the expression
"manufacturer" shall include a person who is liable to pay the duty
of excise leviable on the said final products under sub-rule (3) of rule 4 of
the Central Excise (No. 2) Rules, 2001.
Explanation II: It is clarified that even if the declared inputs are used directly by a
manufacturer of final products, the credit of the said declared duty shall,
notwithstanding the actual amount of duty paid on such declared inputs, be
deemed to be equivalent to the amount specified in this notification and the
credit of the declared duty shall be allowed to such manufacturer.
Explanation III: For the removal of doubt, it is clarified that the provisions of
paragraph 4 shall not apply to a manufacturer who avails of any credit under
rule 3 of the CENVAT Credit Rules, 2001, in respect of the declared inputs
where the said declared inputs are used in manufacture of final products other
than the said final products.
Explanation IV: It is hereby clarified that credit of the declared duty shall be
allowed in respect of final products lying in stock as on the 30th April, 2001
in the premises of the manufacturer registered under rule 174 of the Central
Excise Rules, 1944 and removed on or after the 1st July, 2001.