Excise duty on processed textile fabrics manufactured or produced by an
independent textile processor exclusively with the aid of a hot-air stenter
Notification No. 20 dated 30th April 2001
In pursuance of rule 96 ZNC of the Central Excise Rules, 1944, the
Central Government, hereby fixes the rate of excise duty on processed textile
fabrics falling under heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07, 55.11,
55.12, 55.13 or 55.14, or processed textile fabrics of cotton or man-made
fibres, falling under heading Nos. or sub-heading Nos. 58.01, 58.02, 5806.10,
5806.40, 6001.12, 6001.22, 6001.92, 6002.20, 6002.30, 6002.43 or 6002.93
(hereinafter referred to as the �said goods�), of the First Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986), manufactured or produced by an
independent textile processor exclusively with the aid of a hot-air stenter
(hereinafter referred to as �independent textile processor�) as -
(a)
in the case of a processing factory whose average value of processed
fabric is upto and including Rs. 30 per sq. mtr., Rs. 2.5 lakhs per chamber per
stentor per month; and
(b)
in the case of a processing factory whose average value of processed
fabric exceeds Rs. 30 per sq. mtr., Rs. 3 lakhs per chamber per stentor per
month,
installed in the processing factory, irrespective
of whether such stentor or chamber is in use or not, or is in working condition
or not.
2. For the
purpose of payment of duty of excise, -
(i)
in the case of an existing processing factory of an independent textile
processor, the number of chambers of the hot air stentor installed in such
processing factory as on 1st March, 2001 or 1st May, 2001,
whichever is higher, shall be taken into account;
(ii)
in the case of new processing factory coming into existence after 1st
May, 2001, the number of chambers of the hot air stentor installed in such
processing factory as on the date of making the application under rule 96ZNA of
the said rules shall be taken into account,
subject to the other provisions contained
hereinafter.
3.
The average value of the said goods (per square meter) for the factory of
the independent textile processor shall be arrived at by dividing the total
value of the said goods cleared from the said factory in the immediately
preceding financial year by the total quantity of the said goods cleared during
that preceding financial year.
Provided that where the said goods are
manufactured or produced by a new unit or a closed unit of such factory for
which the average value as specified above cannot be calculated, the average
value of such goods shall be declared by the independent textile processor at
the time of making the application under rule 96ZNA; however, the amount of duty
payable on the said goods shall be re-worked at the end of the financial year on
the basis of actual average value of the said goods manufactured or produced in
that financial year.
4.
The duty levied and collected on the said goods shall be the aggregate of
the duty leviable under the Central Excise Act, 1944 (1 of 1944) and the
Additional Duties of Excise (Goods of Special Importance Act, 1957 (58 of 1957)
and shall be apportioned in the ratio of 1:1 between the duty leviable under
both the aforesaid Acts.
5.
In case the independent textile processor proposes to make any change in
the installed machinery or any part thereof which tends to change the number of
chambers in the hot-air stenters installed in his factory, he shall intimate,
about the proposed change, to the Commissioner of Central Excise in writing with
a copy to the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, one month in advance of such
proposed change, and shall obtain the written approval of the Commissioner of
Central Excise before making such change, whereafter the Commissioner of Central
Excise shall determine the date from which the change in the number of chambers
shall be deemed to be effective;
Provided that where any change in the
installed machinery or any part thereof during a financial year results in the
reduction in the number of chambers in a hot-air stentor or in the number of
hot-air stentors, installed in the processing factory, no account of such
reduction shall be taken into account for computing the duty payable under this
notification during that financial year and the duty of excise shall be payable
during that financial year as if no such reduction in the number of chambers or
hot air stentors had taken place.
6. For the
purposes of this notification,-
(a)
a chamber (of a hot-air stenter), having a rail length of upto 3.05 meter
on each side, installed in the factory of the independent textile processor
shall be construed as one chamber and any fraction exceeding such rail length of
any such chamber shall be computed on a pro rata basis;
(b)
a float drying machine or any other equipment, except the galleries, of a
length 3.05 meters installed in or attached to a stenter for aiding the process
of heat-setting or drying of the fabrics shall be deemed to be one chamber of a
stenter and any fraction of such length shall be computed on a pro rata basis.
7. This
notification shall come into force on the 1st day of May, 2001.
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