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Chapter 51: Exemptions (Other than General)
Notification No. 38 dated 27th June 1997
In exercise of the powers
conferred by sub-section (1) of section 5A of the Central Excise Act, 1944(1 of
1944), 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 normal duty of excise leviable thereon
as is in excess of the amount calculated at the rate specified in the
corresponding entry in column (3), of the said Table.
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S.No.
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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 rupees fifty lakhs made on or after 1st
day of April in a financial year.
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Sixty percent of normal duty
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2.
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Clearances of an aggregate value not exceeding
rupees fifty lakhs immediately following the clearances specified against serial
number 1 above.
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Eighty percent of normal duty
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2. The exemption contained
in this notification shall apply only subject to the following conditions,
namely: -
(i) A manufacturer
intending to avail the exemption under this notification in a financial year
shall exercise his option in writing for availing the exemption under this
notification and such option shall be effective from the date of exercise of the
option and cannot be changed during the financial year under any circumstances:-
(ii) While exercising the option,
the manufacturer shall inform in writing to the 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 the
benefit of this notification, in terms of sub-clause (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;
(iv) Where a manufacturer clears
the specified goods from one or more factories, the exemption in his case shall
apply for the total 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
for the total 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 (including clearances for
export to Bhutan or Nepal) by a manufacturer from one or more factories, or from
a factory by one or more manufacturers, has not exceeded rupees three hundred
lakhs in the preceding financial year.
3. For the purpose of
determining the aggregate value of clearances, the following clearances shall
not be taken into account, namely: -
(a) any 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) any 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 below;
(c) any 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. Such clearances of specified goods used as inputs shall be
deemed to be exempt from the whole of the duty of excise leviable thereon;
(d) any clearances of strips of
plastics used within the factory of production for weaving of fabrics or for
manufacture of snacks or bags made of polymers of ethylene or propylene.
4. The exemption contained
in this notification shall not apply to 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 Chapter X of the Central Excise Rules, 1944. Manufacturers, whose aggregate
value of clearances of such specified goods for use as original equipment does
not exceed rupees thirty lakhs in a financial year, may submit a declaration
regarding such use instead of following the procedure laid down in Chapter X of
the said rules;
(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;
Explanation: For the purposes of
this notification,-
(A)
�brand name� or �trade name� shall 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,-
(a) in
respect of specified goods falling under heading No. 33.03 and sub-heading Nos.
3307.41 and 3307.49 of the Schedule to the Central Excise Tariff Act, 1985 (5 of
1986), the value as determined in accordance with the provisions of section 4A
of the Central Excise Act 1944 (1 of 1944); and
(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 a 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 duty of excise which is specified in the
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), 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 5A of the Central Excise Act, 1944 (1 of 1944).
ANNEXURE
(1) All goods falling under
heading Nos. 51.06, 51.07, 51.08, 51.09, 51.10 (other than woven fabrics of
wool), 51.11 (other than woven fabrics of wool), 51.12, 52.04, 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) 54.01, 55.05, 55.08, 56.01, 56.02,
56.03, 56.04, 56.05 (other than of man-made filaments), 56.07 (other than of
jute), 56.08, 56.09, 58.03, 58.06, 58.07, 58.08, 59.01, 59.05, 59.06, 59.08,
59.09, 59.10, 59.11, 63.01 (other than blankets of wool) 63.02, 63.03, 63.04,
63.05, 63.06 or 63.07 and sub-heading
Nos. 5105.30, 5105.40 and 6002.10 of the Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986) (hereinafter referred to as the said Schedule).
(2) �Uncut grey (unprocessed)
woven weft pile fabrics of cotton manufactured from grey (unprocessed) cotton
yarn falling under sub-heading No.5801.21; fabrics of cotton or man-made fibres
falling under sub-heading No.5802.51; or fabrics of cotton or man-made fibres,
not subjected to any process falling under heading No. 60.01 or 60.02; shoddy
yarn manufactured from used or new rags falling under heading No. 55.09 or 55.10
and unprocessed cotton terry towelling fabric falling under sub-heading
No.5802.21 of the said Schedule.
3. Rubber solution or
vulcanizing solution; textile fabrics coated or laminated with preparations of
low density polyethylene; powered cycles and powered cycle rickshaw (�powered
cycle� or �powered cycle-rickshaw� means a mechanically propelled cycle
or, as the case may be, mechanically propelled cycle rickshaw, which may also be
pedalled, if any necessity arises for so doing); side cars of motor cycles
(including scooters); evaporative type of coolers and parts of such coolers.
(4) Chewing tobacco and
preparations containing chewing tobacco, other than those having a brand name,
falling under heading No. 24.04 of the said Schedule.
(5) All other goods specified in
the said Schedule other than the following, namely: -
(i) all goods falling under
Chapters 24, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61 or 62 of the said
Schedule;
(ii) all goods falling under
heading Nos. 21.06, 25.04, 33.04, 33.05, 36.05, 37.01, 37.02, 40.05, 72.06,
72.07, 72.18, 72.24, 84.71, 85.21, 85.28, 87.01, 87.02, 87.03, 87.04, 87.05,
87.06, 87.11, 91.01 or 91.02 of the said Schedule;
(iii) all goods falling under sub-heading
Nos. 2101.10, 2101.20, 3307.10, 3307.20, 3307.31, 3307.39, 3307.50, 3307.90,
3703.10, 4006.10, 4008.22 or 9605.10 of the said Schedule;
(iv) sandal wood oil; strips of
plastics intended for weaving of fabrics or sacks; polyurethane foam and
articles of polyurethane foam; cold rolled stainless steel pattis/ pattas
falling under Chapter 72 of the said Schedule;
(v) copper circles, whether or
not trimmed, falling under Chapter 74 of the said Schedule;
(vi) aluminium circles, whether or
not trimmed, falling under Chapter 76 of the said Schedule;
(vii) refrigerating and air-conditioning
appliances and machinery and parts and accessories thereof falling under
Chapters 84, 85 or 90 of the said Schedule.
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