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Textiles & Textile Articles
Notification No. 53
dated 29th June 2001 (NT)
This notification has been superseded by Central
Excise Notification No. 6 dated 1st March 2002 (NT).
In exercise of the powers conferred by rule 11 of
the CENVAT Credit Rules, 2001, the Central Government hereby declares the
following inputs (hereinafter referred to as the "declared inputs")
and the final products filling 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:
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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 headings 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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Goods falling within headings 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 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 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) 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, 1975 (58 of 1975) 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, 1975 (58 of 1975) 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, 1975 (58 of 1975) 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, 1975 (58 of 1975) 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 too 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 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 18 of the
Central Excise (No. 2) rules, 2001, 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, 2001, in respect of
the declared inputs and the declared 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 3 of the CENVAT Credit
Rules, 2001, 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. The provisions of this
notification shall not apply to a manufacturer who avails of the special
procedure for payment of excise duty under rule 15 of the Central Excise (No. 2)
Rules, 2001 and pays the specified amount of duty in accordance with a
notification issued thereunder.
6. In respect of a
composite mill, the provisions of this notification shall apply only to
processed fabrics manufacture 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 of the CENVAT credit Rules, 2001 or notification issued thereunder.
Explanation: It is clarified that the
CENVAT credit in respect of capital goods, under rule 3 of the CENVAT credit
Rules, 2001, shall be allowed to the said composite mill subject to the
conditions as specified under rule 4 of that rules.
7. 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, 1975 (58 of 1975), has not been levied or paid or has been
short-levied or short paid or erroneously refunded by reason of fraud, collusion
or any willful 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.
8.
This notification shall come into effect on and from the 1st
day of July 2001.
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 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,
2001, 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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