SSI Exemption Effective from 1-4-2002 for
Units not Availing CENVAT Credit
Notification
No. 8 dated 1st March 2002
(As amended by Corrigendum dated 1st March 2002, Notification No. 26
dated 27th April 2002, Notification No. 47 dated 6th September
2002)
This Notification has been
supersessed by Central Excise Notification No. 8
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) and in supersession of
the notification of the Government of India in the Ministry of Finance (Department
of Revenue) No. 8/2001-Central Excise, dated the 1st March 2001,
published in the Gazette of India vide number G.S.R. 133(E), dated the 1st
March 2001, the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts clearances, specified in column (2) of
the Table below (hereinafter referred to as the said Table) for home
consumption of excisable goods of the description specified in the Annexure
appended to this notification (hereinafter referred to as the specified goods),
from so much of the aggregate of, -
(i)������ the
duty of excise specified thereon in the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986); and
(ii)����� the
special duty of excise specified thereon in the Second Schedule to the said
Central Excise Tariff Act,
as
is in excess of the amount calculated at the rate specified in the
corresponding entry in column (3) of the said Table:
Provided that nothing contained in this notification shall apply to a
manufacturer who has availed the exemption under notification No.
39/2001-Central Excise, dated the 31st July 2001, published in the
Gazette of India vide number G.S.R. 565 (E), dated the 31st July,
2001, in the same financial year.
TABLE
|
Sl. No.
|
Value
of clearances
|
Rate of duty
|
|
(1)
|
(2)
|
(3)
|
|
1.
|
First clearances upto an aggregate value not exceeding one
hundred lakh rupees made on or after the 1st day of April in any
financial year
|
Nil
|
|
2.
|
All clearances of the specified goods which are used as
inputs for further manufacture of any specified goods within the factory of
production of the specified goods.
|
Nil
|
2.���� The
exemption contained in this notification shall apply subject to the following
conditions, namely: -
(i)���� a
manufacturer has the option not to avail the exemption contained in this
notification and instead pay the normal rate of duty on the goods cleared by
him. Such option shall be exercised before effecting his first clearances at
the normal rate of duty. Such option shall not be withdrawn during the
remaining part of the financial year;
(ii)��� while
exercising the option under condition (i), the manufacturer shall inform in
writing to the Deputy Commissioner or Assistant Commissioner of Central Excise
with a copy to the Superintendent of Central Excise giving the following
particulars, namely: -
(a)�� name and address
of the manufacturer;
(b)�� location/ locations
of factory/factories;
(c)�� description of
specified goods produced;
(d)�� date from which
option under this notification has been exercised;
(e)�� aggregate value
of clearances of specified goods (excluding the value of clearances referred to
in paragraph 3 of this notification) till the date of exercising the option;
(iii)�� the manufacturer shall not avail the credit of duty on inputs
under rule 3 or rule 11 of the CENVAT Credit Rules, 2002, paid on inputs used
in the manufacture of the specified goods cleared for home consumption, the
aggregate value of first clearances of which, as calculated in the manner
specified in the said Table does not exceed rupees one hundred lakhs;
(iv)��� the
manufacturer also does not utilise the credit of duty on capital goods under
rule 3 or rule 11 of the said rules, paid on capital goods, for payment of
duty, if any, on the aforesaid clearances, the aggregate value of first
clearances of which does not exceed rupees one hundred lakhs, as calculated in
the manner specified in the said Table;
(v)��� where
a manufacturer clears the specified goods from one or more factories, the
exemption in his case shall apply to the aggregate value of clearances
mentioned against each of the serial numbers in the said Table and not separately
for each factory;
(vi)��� where
the specified goods are cleared by one or more manufacturers from a factory,
the exemption shall apply to the aggregate value of clearances mentioned
against each of the serial numbers in the said Table and not separately for
each manufacturer;
(vii)�� the aggregate value of clearances of all excisable goods for home
consumption by a manufacturer from one or more factories, or from a factory by
one or more manufacturers does not exceed rupees three hundred lakhs in the
preceding financial year.
3.���� For
the purposes of determining the aggregate value of clearances for home
consumption, the following clearances shall not be taken into account, namely: -
(a)��� clearances,
which are exempt from the whole of the excise duty leviable thereon (other than
an exemption based on quantity or value of clearances) under any other
notification or on which no excise duty is payable for any other reason;
(b)��� clearances
bearing the brand name or trade name of another person, which are ineligible
for the grant of this exemption in terms of paragraph 4;
(c)��� clearances
of the specified goods which are used as inputs for further manufacture of any
specified goods within the factory of production of the specified goods;
(d)��� clearances
of strips of plastics used within the factory of production for weaving of
fabrics or for manufacture of sacks or bags made of polymers of ethylene or
propylene:
Provided that the clearances for home consumption of goods falling under
Chapter 62 of the said First Schedule, whether on payment of duty or otherwise,
between 1st April, 2001 and 30th April, 2001 (both days inclusive) shall be
taken into account while computing the aggregate value of clearances for the
financial year 2001-2002.
Provided further that the clearances for home consumption of goods falling
under heading Nos. 25.04, 68.07 or sub-heading No. 360510, whether on payment
of duty or otherwise, between 1st April, 2002 and 26th
April, 2002, (both days inclusive) shall be taken into account while computing
the aggregate value of clearances at Nil rate of duty under Sl. No. 1 of the
said Table for the financial year 2002-2003.
Provided also that the
clearances for home consumption of ball or roller bearings falling under
Chapter 84 of the First Schedule made under notification No. 24/ 2001-Central
Excise, dated the 30th April, 2001, between the 1st day
of April, 2002 and the 5th day of September 2002, (both days
inclusive), shall be taken into account when computing the aggregate value of clearances
at Nil rate of duty under Sl. No. 1 of the said Table, for the financial year
2002-2003.
4.���� The
exemption contained in this notification shall not apply to specified goods
bearing a brand name or trade name, whether registered or not, of another
person, except in the following cases: -
(a)��� where
the specified goods, being in the nature of components or parts of any
machinery or equipment or appliances, are cleared for use as original equipment
in the manufacture of the said machinery or equipment or appliances by
following the procedure laid down in the Central Excise (Removal of Goods at
Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001:
Provided that manufacturers, whose aggregate value of clearances of the
specified goods for use as original equipment does not exceed rupees one
hundred lakhs in the financial year 2001-2002 as calculated in the manner
specified in paragraph 1, may submit a declaration regarding such use instead
of following the procedure laid down in the said Central Excise (Removal of
Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,
2001;
���������� (b)������ where
the specified goods bear a brand name or trade name of-
(i)��� the Khadi and
Village Industries Commission; or
(ii)�� a State Khadi
and Village Industry Board; or
(iii)� the National
Small Industries Corporation; or
(iv)�� a State Small
Industries Development Corporation; or
(v)�� a State Small
Industries Corporation;
(c)���������� where the
specified goods are manufactured in a factory located in a rural area.
5.������� This notification shall come into force
on the 1st day of April 2002.
Explanation: For the purposes of this notification, -
(A)����� �brand
name� or �trade name� means a brand name or a trade name, whether registered or
not, that is to say, a name or a mark, such as symbol, monogram, label,
signature or invented word or writing which is used in relation to such
specified goods for the purpose of indicating, or so as to indicate a
connection in the course of trade between such specified goods and some person
using such name or mark with or without any indication of the identity of that
person;
(B)����� where
the specified goods manufactured by a manufacturer bear a brand name or trade
name, whether registered or not, of another manufacturer or trader, such
specified goods shall not, merely by reason of that fact, be deemed to have
been manufactured by such other manufacturer or trader;
(C)������ �value� means, -
(i)������ in
respect of specified goods which have been notified under section 4A of the
Central Excise Act 1944, the value as determined in accordance with the
provisions of that section, and
(ii)����� in
respect of specified goods other than those referred to in sub clause (i), the
value as determined in accordance with the provisions of section 4 of the
Central Excise Act, 1944, or the tariff value fixed under section 3 of the said
Act;
(D)����� in
the determination of the value of clearances of Chinaware or Porcelainware or
both, where a manufacturer gets Chinaware or Porcelainware or both fired in a
kiln belonging to or maintained by a Pottery Development Centre run by the
Central Government or a State Government or by the Khadi and Village Industries
Commission, the value of the Chinaware or Porcelainware or both, belonging to
the said manufacturer and fired in such kiln shall be taken into account;
(E)����� where
the specified goods are manufactured in a factory belonging to or maintained by
the Central Government or by a State Government, or by a State Industries
Corporation, or by a State Small Industries Corporation or by the Khadi and
Village Industries Commission, then the value of excisable goods cleared from
such factory alone shall be taken into account;
(F)����� �normal
rate of duty� means the aggregate of duty of excise specified in the First
Schedule to the Central Excise Tariff Act, 1985 and the special duty of excise
specified in the Second Schedule to the said Central Excise Tariff Act read
with any relevant notification (other than this notification or a notification
in which exemption is based on the value or quantity of clearance) issued under
sub-section (1) of section 5A of the said Central Excise Act, 1944;
(G)����� �clearances
for home consumption�, wherever referred to in this notification, shall include
clearances for export to Bhutan and Nepal;
(H)�����
�rural area� means the area comprised in a village as defined in the land
revenue records, excluding-
(i)������ the
area under any municipal committee, municipal corporation, town area committee,
cantonment board or notified area committee, or
(ii)�� any
area that may be notified as an urban area by the Central Government or a State
Government.�
(I)������ for
the purpose of goods falling under Chapter 61 or 62 of the said First Schedule,
the expression �manufacturer� shall include a person who is liable to pay the
duty of excise leviable on such goods under sub-rule (3) of rule 4 of the
Central Excise Rules, 2002.
(J)����� refund of duty paid on clearances made
before the 27th day of April, 2002 on the ground that such clearances are
included in the aggregate value of clearances under Sl. No. 1 of the table,
shall not be admissible.
(K)����� refund of duty paid on clearances of ball
or roller bearings falling under Chapter 84 of the First Schedule, made before
the 6th day of September, 2002 on the ground that such clearances
are included in the aggregate value of clearances under Sl. No. 1 of the said
Table, shall not be admissible.
ANNEXURE
All
goods specified in the First Schedule and the Second Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986), other than the following, namely: -
(i)������ all
goods, which are chargeable to nil rate of duty or are exempt from the whole of
the duty of excise leviable thereon;
(ii)������ all goods falling under heading No. 09.02;
(iii)�� all goods falling under heading No. 21.06 and sub-heading Nos.
2101.10 and 2101.20;
(iv)��� all
goods falling under Chapter 24 of the First Schedule (other than unbranded
chewing tobacco, preparations containing chewing tobacco and tobacco extracts
and essences, falling under heading No. 24.04);
(v)��� omitted;
(vi)������ sandalwood oil;
(vii)����� all goods falling under sub-heading No.
3605.90;
(viii)���� all goods falling under heading Nos. 37.01,
37.02, and sub-heading No. 3703.10;
(ix)��� strips
of plastics intended for weaving of fabrics or sacks, polyurethane foam and
articles of polyurethane foam, falling under Chapter 39 of the First Schedule;
(x)��� all
goods falling under Chapter 51 of the First Schedule other than those falling
under sub-heading Nos. 5105.30 and 5105.40 and heading Nos. 51.06, 51.07,
51.08, 51.09, 51.10 and 51.11 (except woven fabrics of wool falling under
heading Nos. 51.10 or 51.11) and 51.12;
(xi)��� all
goods falling under Chapter 52 of the First Schedule other than goods falling
under heading No. 52.04;
(xii)�� all goods falling under Chapter 53 of the First Schedule except
goods falling under heading Nos. 53.01, 53.02, 53.04, 53.05,53.08(other than
goods falling under sub-heading No. 5308.14), 53.11(other than woven fabrics of
ramie);
(xiii)� all goods falling under Chapter 54 of the First Schedule except
goods falling under heading Nos. 54.01;
(xiv)� all goods falling under Chapter 55 of the First Schedule except
goods falling under heading Nos. 55.05, 55.08 and shoddy yarn manufactured from
used or new rags falling under heading No. 55.09 or 55.10;
(xv)�� all
goods falling under Chapter 56 of the First Schedule except goods falling under
heading Nos. 56.01, 56.02, 56.03, 56.04, 56.05, chenille yarn falling under
sub-heading No. 5606.00,56.07(other than of jute), 56.08 and 56.09;
(xvi)����� all goods falling under Chapter 57 of the
First Schedule;
(xvii)� all goods falling under Chapter 58 of the First Schedule except
goods falling under heading Nos. 58.03, 58.06, 58.07, 58.08, uncut grey
(unprocessed) woven weft pile fabrics of cotton manufactured from grey
unprocessed cotton yarn falling under sub-heading No.5801.21, unprocessed woven
pile fabrics of cotton falling under sub-heading No.5801.21 and unprocessed
woven pile fabrics of man�made fibres falling under sub-heading No.5801.31,
fabrics of cotton or man-made fibres falling under sub-heading No.5802.51, and
unprocessed cotton terry towelling fabrics falling under sub-heading No.5802.21;
(xviii) all goods falling under Chapter 59 of the First Schedule except
goods falling under Heading Nos. 59.01, 59.05, 59.06, 59.08, 59.09 59.10, 59.11
and textile fabrics coated or laminated with preparations of low-density
polyethylene;
(xix)� all goods falling under Chapter 60 of the First Schedule except
goods falling under sub-heading No.6002.10 and fabrics of cotton man-made
fibres not subjected to any process falling under heading Nos. 60.01 or 60.02;
(xx)����� blankets of wool falling under Chapter 63
of the First Schedule;
(xxi)���� aluminium circles, whether or not trimmed, falling under Chapter
76 of the First Schedule;
(xxii)
(A)��������� All goods
falling under �
(a)������ heading No.
74.03, excluding the following goods falling under sub-heading No.
7403.21,namely: -
(i)� cast brass
bars/rods of a length not exceeding three feet;
(ii)������ cast
brass bars/rods of a length not exceeding ten feet used in the factory of
production for making wires falling under sub-heading No. 7408.29;
(iii) copper flats of a
weight not exceeding two kilograms used for making copper strips falling under
heading No. 74.09;
(iv) brass billets weighing upto five kilograms;
(b)������ heading No.
74.09 (excluding copper strips produced from copper flats of a weight not
exceeding two kilograms);
(c)������ sub-heading
Nos. 7407.11, 7407.12, 7408.11, 7408.21; and
(B)��������� copper
circles, whether or not trimmed;
(xxiii)��� omitted;
(xxiv) all goods falling under heading Nos 87.01, 87.02, 87.03, 87.04, 87.05,
87.06 and 87.11 [other than powered cycles and powered cycle rickshaw (�powered
cycle� or powered rickshaw means a mechanically propelled cycle or, as the case
may be, mechanically propelled cycle rickshaw, which may also be peddled, if
any necessity arises for so doing)];
(xxv)���� all goods falling under heading Nos 91.01
or 91.02;
(xxvi) all goods falling under
(a)����� heading Nos. 93.02, 93.03, 93.04 [except
air guns, air rifles and air pistols which are exempt from the provisions of
the Arms Act, 1959 (54 of 1959)],
(b)��������� heading
Nos.93.06 and 93.07 (except parts falling under heading Nos. 93.06 or 93.07);
(xxvii)��� all goods falling under sub-heading No. 9605.10.