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SSI Exemption Effective from 1-4-2003 for Units Availing CENVAT Credit
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) (herein after referred to as the Central Excise
Act) and in supersession of the notification of the Government of India in the
Ministry of Finance (Department of Revenue) No.
9/2002- Central Excise, dated the 1st March 2002, published in
the Gazette of India vide number G.S.R. 130 (E), dated the 1st March
2002, 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) (herein after referred to as the
First Schedule) or the Second Schedule to the said Central Excise Tariff Act
(herein after referred to as the Second Schedule), 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 up to 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 per cent. 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 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 Assistant Commissioner of Central Excise
or the jurisdictional Deputy 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 inputs used in manufacture of specified goods;
(d)
description of specified goods produced;
(e)
date from which option under this notification has been exercised;
(f)
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 per cent of normal duty.
Illustration
2: A manufacturer who has
been availing of full exemption on any goods during a financial year under
Notification No. 8/2003-Central Excise, dated the 1st March 2003,
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 per cent. 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 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;
(b)
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;
(c)
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:
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 2002-2003, 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 2003.
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, 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, 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 said First Schedule, 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;
(ii) in the case of goods leviable to duty
under the said Second Schedule, 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;
(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.
ANNEXURE
All
goods specified in the First Schedule and the Second Schedule to the Central
Excise Tariff Act, 1985, 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 said First Schedule (other than
unbranded chewing tobacco, preparations containing chewing tobacco and tobacco
extracts and essences, falling under heading No. 24.04);
(v)
sandalwood oil;
(vi)
all goods falling under heading No. 3605.90;
(vii)
all goods falling under heading Nos. 37.01, 37.02, and sub-heading No.
3703.10;
(viii)
strips of plastics intended for weaving of fabrics or sacks, polyurethane
foam and articles of polyurethane foam, falling under Chapter 39 of the said
First Schedule;
(ix)
all goods falling under Chapter 51 of the said First Schedule other than
those falling under sub-heading Nos. 5105.30 and 5105.40 and heading Nos. 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;
(x)
all goods falling under Chapter 52 of the said First Schedule other than
goods falling under heading No. 52.04 and cotton fabric falling under heading
Nos. 52.07, 52.08 and 52.09, intended for use in the manufacture of cotton
absorbent lint;
(xi)
all goods falling under Chapter 53 of the said 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);
(xii)
all goods falling under Chapter 54 of the said First Schedule except
goods falling under heading Nos. 54.01;
(xiii)
all goods falling under Chapter 55 of the said First Schedule except
goods falling under heading Nos. 55.05 and 55.08;
(xiv)
all goods falling under Chapter 56 of the said 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;
(xv)
all goods falling under Chapter 57 of the said First Schedule;
(xvi)
all goods falling under Chapter 58 of the said First Schedule except
goods falling under heading Nos. 58.03, 58.06, 58.07and 58.08;
(xvii)
all goods falling under Chapter 59 of the said 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;
(xviii)
all goods falling under Chapter 60 of the said 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;
(xix)
articles of apparel (except (a) raincoat, (b) undergarments including
brassieres, panties, briefs, girdles, corsets, slips, vests, singlets,
petticoats, braces, suspenders, garters and similar articles, and (c) articles
of apparel, made out of handloom fabrics) falling under sub-heading Nos. 6101.00
and 6201.00;
(xx)
blankets of wool falling under Chapter 63 of the said First Schedule;
(xxi)
ceramic tiles falling under Chapter 69 of the said First Schedule;
(xxii)
stainless steel patties/ pattas falling under Chapter 72 of the said
First Schedule;
(xxiii)
aluminium circles, whether or not trimmed, falling under Chapter 76 of
the said First Schedule;
(xxiv)
(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;
(xxv)
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)];
(xxvi)
all goods falling under heading Nos 91.01 or 91.02;
(xxvii)
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);
(xxviii)
all goods falling under sub-heading No. 9605.10.
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