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Notification No. 7 dated 1st March 2001 - Central Excise (NT) (As amended
by 17/2001, 28/2001)
In exercise of the powers
conferred by rule 57AK of the Central Excise Rules, 1944, and in supersession of
the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No. 7/2001-Central Excise (NT), dated the 31st
March, 2000, published in the Gazette of India vide number G.S.R. 299 (E), dated
the 31ST March, 2000, except as respects things done or omitted to be
done before such supersession, the Central Government, hereby declares the
following inputs (hereinafter referred to as the �declared inputs�) and
final products falling within the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986) (hereinafter referred to as the said First Schedule),
namely: -
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S. No
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Inputs
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Final Products
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(1)
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Goods falling within heading
No. 51.05, 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02, 54.03, 54.04,
54.05, 55.01, 55.02, 55.03, 55.04, 55.05, 55.06, 55.07, 55.09, 55.10, 56.04,
56.05 or 56.06 of the said First Schedule.
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The following goods manufactured by a composite mill, namely: -
(i) Processed fabrics
falling under Chapters 52 (except sub-heading Nos. 5207.20, 5208.20 and
5209.10), 54 (except sub-heading Nos. 5406.10 and 5407.10) or 55 (except
sub-heading Nos. 5511.10, 5512.10, 5513.10 and 5514.10); or
(ii) Fabrics of cotton or man-made
fibres, whether or not processed, falling under heading Nos. 58.01, 58.02, 58.06
(except sub-heading No. 5806.20), 60.01, 60.02 (except sub-heading No. 6002.10)
of the said First Schedule.
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(2)
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(i) Goods falling within
heading No. 51.05, 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02,
54.03, 54.04, 54.05, 55.01, 55.02, 55.03, 55.04, 55.05, 55.06, 55.07, 55.09,
55.10, 56.04, 56.05 or 56.06 of the said First Schedule.
(ii) Dyes, chemicals, consumables,
packaging materials falling within the said First Schedule.
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The following goods
manufactured by a manufacturer other than a composite mill, namely: -
(i) Processed fabrics
falling under Chapters 52 (except sub-heading Nos. 5207.20, 5208.20 and
5209.10), 54 (except sub-heading Nos. 5406.10 and 5407.10) or 55 (except
sub-heading Nos. 5511.10, 5512.10, 5513.10 and 5514.10); or
(ii) Fabrics of cotton or man-made
fibres, whether or not processed, falling under heading Nos. 58.01, 58.02, 58.06
(except sub-heading No. 5806.20), 60.01, 60.02 (except sub-heading No. 6002.10)
of the said First Schedule.
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(3)
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Goods falling within heading
Nos. 52.05 or 52.06 of the said First Schedule.
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The following goods manufactured by a manufacturer other than a
composite mill, namely: -
(a) Gauze falling under heading
No. 58.03 of the said First Schedule;
(b) Book binding cloth falling
under sub-heading No. 5901.10 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);
(ii) the additional duty under
section 3 of the Customs Tariff Act, 1975 (51 of 1975); or
(iii)
the additional duty of excise under section 3 of the Additional Duties of
Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), (hereinafter
referred to as the declared duty) shall be deemed to have been paid on the
declared inputs and the same, -
(i) in case of a composite
mill, shall be equivalent to the amount calculated at the rate of,-
(a) 20 per cent of the aggregate
of the duty of excise leviable under the Central Excise Act, 1944 (1 of 1944)
and the additional duty of excise leviable under the Additional Duties of Excise
(Goods of Special Importance) Act, 1957 (58 of 1957) read with any notification
for the time being in force, on the final products of cotton (not containing any
other textile material) declared herein;
(b) 45 per cent
of the aggregate of the duty of excise leviable under the Central Excise Act,
1944 (1 of 1944), and the additional duty of excise leviable under the
Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957)
read with any notification for the time being in force, on the final products
other than those specified in sub-clause (a),
(ii) in case of
a manufacturer other than a composite mill, shall be equivalent to the amount
calculated at the rate of-
(a) 25 per cent of the
aggregate of the duty of excise leviable under the Central Excise Act, 1944 (1
of 1944) and the additional duty of excise leviable under the Additional Duties
of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) read with any
notification for the time being in force, on the final products of cotton (not
containing any other textile material) declared herein;
(b) 50 per cent of the
aggregate of the duty of excise leviable under the Central Excise Act, 1944 (1
of 1944), and the additional duty of excise leviable under the Additional Duties
of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) read with any
notification for the time being in force, on the final products other than those
specified in sub-clause (a),
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 said inputs, at the time of clearance of the said final products.
3. The credit of declared
duty allowed in respect of the said inputs shall be utilized towards payment of
duty of excise or the additional duty of excise leviable under the said Central
Excise Act and the Additional Duties of Excise (Goods of Special Importance)
Act, on the said final products;
Provided that the credit of declared duty in respect of
the inputs used in the final products cleared for export under bond shall be
allowed to be utilized towards payments of duty of excise on any 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 such refund of 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
12 of the Central Excise Rules, 1944, in respect of such duty.
4. The
provisions of this notification shall not apply to a manufacturer (other than a
composite mill) who avails any credit, under rule 57AB of the Central Excise Rules, 1944,
in respect of the said inputs and the said 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 57AB of the Central
Excise Rules, 1944, shall be allowed to the said manufacturer (other than a
composite mill) subject to the conditions as specified under rule 57AC of the
said rules.
4A. The provisions of
this notification shall not apply to a manufacturer who avails of the special
procedure prescribed under rule 96ZNA and pays the specified sum of duty in
accordance with a notification issued under rule 96 ZNC of the Central Excise
Rules, 1944.
5. In
respect of a composite mill, the provisions of this notification shall apply
only to processed fabrics manufactured from unprocessed fabrics not woven in the
same composite mill, subject to the condition that no credit has been taken in
respect of the declared inputs contained in such unprocessed fabrics under any
other rule or notification.
Explanation: It is clarified that
the CENVAT credit in respect of capital goods, under rule 57AB of the Central
Excise Rules, 1944, shall be allowed to the said composite mill subject to the
conditions as specified under rule 57AC of the said rules.
6. 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), or as the case may be, the
additional duty leviable under the Additional Duties of Excise (Goods of Special
Importance) Act, 1957 (58 of 1957), has not been levied or paid or has been
short-levied or short paid or erroneously refunded by reason of fraud, collusion
or any wilful mis-statement or suppression of facts, or contravention of any
provisions of the Central Excise Act or of the rules made thereunder with intent
to evade payment of duty.
7. This notification shall
come into effect on and from the 1st day of March 2001.
Explanation I:
It is clarified that even if the declared inputs
are used directly by a manufacturer of final products the credit of the 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 II:
For the purposes of this notification,
�composite mill� means a manufacturer who is engaged in the processing of
fabrics with the aid of power along with the spinning of yarn from fibres and
weaving or knitting or crocheting of fabrics within the same factory and
includes a multi-locational composite mill i.e. a public limited company which
is engaged in the processing of fabrics with the aid of power along with the
spinning of yarn from fibres and weaving or knitting or crocheting of fabrics in
one or more factories owned by the same public limited company.
Explanation III:
For removal of doubts it is clarified that the
provisions of this notification shall not apply where processed fabric itself is
used as an input for further processing.
Explanation IV:
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 the 57AB of the Central Excise Rules, 1944 in respect of the
declared inputs where the said declared inputs are used in manufacture of final
products other than the said final products.
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