SSI Exemption Effective from 1-4-2002 for
Units Availing CENVAT Credit
Notification
No. 9 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. 9
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. 9/2001-Central
Excise, dated the 1st March 2001, published in the Gazette of India
vide number G.S.R. 134 (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� each of the duties of excise� specified� thereon in the First Schedule to
the Central Excise Tariff Act, 1985 (5 of 1986) or the Second Schedule to the
said Central Excise� Tariff� Act, as the case may be, 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
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S.No.
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Value of
Clearances
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Rate of
duty
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(1)
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(2)
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(3)
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1.
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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.
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Sixty percent of normal rate of
duty
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�
2.
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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.
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Nil
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2.������� The
exemption contained in this notification shall apply only subject to the
following conditions, namely: �
(i)���� a manufacturer who intends to
avail the exemption under this notification shall exercise his option in
writing for availing the exemption under this notification before effecting the
first clearances and such option shall be effective from the date of exercise
of the option and 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
jurisdictional 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 para 3 of this
notification) till the date of exercising the option;
(iii) �� where a manufacturer opts
for availing the exemption under this notification in terms of condition (i)
above, the clearances of specified goods already made during the financial
year, prior to the exercise of such option, shall be taken into account for
computing the aggregate value of clearances, as specified in the said Table;
Illustration1. -
A manufacturer who has been paying the normal duty on any goods during a
financial year opts to avail of this exemption after making clearances having
an aggregate value of rupees twenty lakhs. He is entitled under this
notification to additional clearances of an aggregate value of rupees eighty
lakhs at the concessional rate of sixty percent of normal duty.
Illustration 2.
- A manufacturer, who has been availing of full
exemption on any goods during a financial year under notification No.
8/2002-Central Excise, dated The 1st March 2002, opts to avail of this
exemption after making clearances having an aggregate value of rupees twenty
lakhs. He is entitled under this notification to additional clearances of an
aggregate value of rupees eighty lakhs at the concessional rate of sixty
percent of normal duty.
(iv)��� 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;
(v)��� 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;
(vi)��� 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 exemption
under this notification in terms of paragraph 4;
(c)��� clearances of 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, whether
on payment of duty or otherwise, falling under Chapter 62 of the said First
Schedule, 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. 3605.10, 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 concessional rate of sixty per cent. of
normal 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 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 the
concessional rate of sixty per cent of normal duty under Sl. No. 1of the said
Table in the financial year 2002-2003.
4.���� The exemption contained in this
notification shall not apply to the specified goods bearing a brand name or
trade name, whether registered or not, of another person, except in the following
cases, namely: -
(a)��� where 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
for home consumption of such 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 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�
mean a brand name or 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 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, 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:
(i) in the case of goods leviable to
duty under the First Schedule to the Central Excise Tariff Act, 1985, at the
rate specified for such goods in that Schedule read with any relevant
notification (other than this notification or a notification in which exemption
is based on the value or quantity of clearances) issued under sub-section (1)
of section 5A of the Central Excise Act, 1944.
(ii) in the case of goods leviable
to duty under the Second Schedule to the Central Excise Tariff Act, 1985, at
the rate specified for such goods in that Schedule read with any relevant
notification (other than this notification or a notification in which exemption
is based on the value or quantity of clearances) issued under sub-section (1)
of section 5A of the Central Excise Act, 1944.
(G) �clearances for home
consumption� shall also 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 said 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. 1of 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: -
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(i)
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All goods which are chargeable to nil
rate of duty or are exempt from the whole of the duty of excise leviable
thereon;
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(ii)
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All goods falling under heading
No. 09.02;
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(iii)
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All goods falling under heading
No. 21.06 and sub-heading Nos. 2101.10 and 2101.20;
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(iv)
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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);
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(v)
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Omitted;
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(vi)
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Sandalwood oil;
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(vii)
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All goods falling under sub
heading No. 3605.90;
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(viii)
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All goods falling under heading
Nos. 37.01, 37.02, and sub-heading No. 3703.10;
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(ix)
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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;
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(x)
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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;
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(xi)
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All
goods falling under Chapter 52 of the First Schedule other than goods falling
under heading No. 52.04;
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(xii)
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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);
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(xiii)
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All goods falling under Chapter 54
of the First Schedule except goods falling under heading Nos. 54.01;
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(xiv)
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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;
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(xv)
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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;
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(xvi)
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All goods falling under Chapter 57
of the First Schedule;
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(xvii)
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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;
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(xviii)
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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;
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(xix)
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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;
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(xx)
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Blankets of wool falling under
Chapter 63 of the First Schedule;
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(xxi)
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Aluminium circles, whether or not
trimmed, falling under Chapter 76 of the First Schedule;
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(xxii)
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(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
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(B) Copper circles, whether or not
trimmed;
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(xxiii)
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Omitted;
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(xxiv)
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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)];
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(xxv)
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All goods
falling under heading Nos 91.01 or 91.02;
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(xxvi)
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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);
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(xxvii)
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All goods falling under
sub-heading No.� 9605.10.
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