Notification
No. 6 dated 1st March 2002 (NT) {As
amended by Notification No. 16 dated 27th April 2002 (NT), Notification No. 29
dated 6th September 2002 (NT), Notification No. 8 dated 1st March 2003
(NT)}
In exercise
of the powers conferred by rule 11 of the CENVAT Credit Rules, 2002, and in
supersession of the notification of the Government of India in the Ministry of
Finance (Department of Revenue) No. 53/2001-Central Excise (N.T.), dated the 29th
June 2001, published in the Gazette of India vide number G.S.R. 497 (E), dated
the 29th June 2001, except as respects things done or omitted to
have been 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), as
specified in the Table below, namely: -
TABLE
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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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(2)
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(3)
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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), 55 (except sub-heading Nos.
5511.10, 5512.10, 5513.10 and 5514.10), 60.01 or 60.02 (except sub-heading
No. 6002.10); or
(ii) Fabrics of cotton or man-made
fibres, whether or not processed, falling under heading Nos. 58.01, 58.02 or
58.06 (except sub-heading No. 5806.20) 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), 55 (except sub-heading Nos.
5511.10, 5512.10, 5513.10 and 5514.10) or60.01, 60.02 (except sub-heading No.
6002.10); or
(ii) Fabrics of cotton or man-made
fibres, whether or not processed, falling under heading Nos. 58.01, 58.02 or
58.06 (except sub-heading No. 5806.20), of the said First Schedule.
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(3)
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Goods falling within heading No.
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)������ 26 percent of the aggregate of the duty
of excise leviable under the Central Excise Act, 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)������ 60 percent of the aggregate of the duty
of excise leviable under the Central Excise Act, 1944 and the additional duty
of excise leviable under the Additional Duties of Excise (Goods of Special
Importance) Act, 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)������ 33 1/3 percent of the
aggregate of the duty of excise leviable under the Central Excise Act, 1944 and
the additional duty of excise leviable under the Additional Duties of Excise
(Goods of Special Importance) Act, 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)������ 66 2/3 percent of the
aggregate of the duty of excise leviable under the Central Excise Act, 1944 and
the additional duty of excise leviable under the Additional Duties of Excise
(Goods of Special Importance) Act, 1957 read with any notification for the time
being in force, on the final products other than those specified in sub-clause
(a),
(iii)
in the case of a manufacturer other than a composite
mill, shall be equivalent to the amount calculated at the rate of 50 per cent
of the aggregate of the duty of excise leviable under the Central Excise Act,
1944 and the additional duty of excise leviable under the Additional Duties of
Excise (Goods of Special Importance) Act, 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 and subjected to stentering with the
aid of an open-air stenter, singeing, cropping or butta-cutting, curing or
heat-setting or expanding or any one or more of these processes, subject to the
condition that the said final products are processed in a factory which does
not have the facilities (including plant and equipment) for carrying out
bleaching, dyeing or printing with the aid of power or steam, (This has
been omitted vide Notification No. 29 dated 6th
September 2002)
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 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
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 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 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, 1995 or claims rebate of duty under
rule 18 of the Central Excise Rules, 2002, 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 3 of the CENVAT Credit Rules, 2002, in respect of the
declared inputs, which are used in the manufacture of the said final products.
4A.
The provisions of this notification shall not apply in
respect of the said final products manufactured by a manufacturer other than a
composite mill from such consignments of unprocessed fabrics in respect of
which credit under rule 3 of the CENVAT Credit Rules, 2002, has been availed.
Explanation:
It is clarified that the CENVAT credit in respect of capital goods, under rule
3 of the CENVAT Credit Rules, 2002, shall be allowed to the said manufacturer
(other than a composite mill) subject to the conditions as specified under rule
4 of that rules.
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, under rule 3 of the CENVAT Credit
Rules, 2002, in respect of the said unprocessed fabrics is availed of by that
composite mill.
Explanation:
It is clarified that the CENVAT credit in respect of capital goods, under rule
3 of the CENVAT Credit Rules, 2002, shall be allowed to the said composite mill
subject to the conditions as specified under rule 4 of that 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, or as the case may be, the additional duty leviable under the
Additional Duties of Excise (Goods of Special Importance) Act, 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
remain in force upto and inclusive of the 31st day of March 2003.
Explanation 1:
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 2:
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 3:
For the removal of doubt 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 4: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, 2002, 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 5: For the
removal of doubt, it is hereby clarified that a manufacturer other than a
composite mill availing of the provisions of this notification in respect of
any consignment of the said final products shall not be eligible to avail of
any credit, under rule 3 of the CENVAT Credit Rules, 2002, in respect of dyes,
chemicals, consumables or packaging materials falling within the said First
Schedule and used in the manufacture of any consignment of the said final
products.