Notification No. 21 dated 28^th February 1999 (As amended by Notification No. 24/99 C.E. (N.T.), dated 3-3-1999, No. 32/99-C.E. (N.T.) dated 11-5-1999 and No. 10/2000-C.E. (N.T.), dated 1-3-2000)

In exercise of the powers conferred by rule 57A of the Central Excise Rules, 1944 (hereinafter referred to as the said rules), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 5/94- Central Excises (N.T.), dated the 1^st March, 1994, the Central Government hereby specifies -

(a)    goods falling under the First Schedule to the Central  Excise Tariff Act, 1985 (5 of 1986), other than -

(i)     motor spirit (commonly known as petrol) falling under heading No. 27.10;

(ii)    high speed diesel oil falling under heading No. 27.10;

(iii)   ingots and billets of non-alloy steel, on which the duty of excise has been paid under section 3A of the Central  Excise Act, 1944, falling under sub-heading Nos. 7206.90 and 7207.90; and

(iv)    hot re-rolled products of non-alloy steel, on which the duty of excise has been paid under section 3A of the Central  Excise Act, 1944, of heading Nos. 7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92, 7211.99, 7213.90, 7214.90, 7215.90, 7216.10 and 7216.90, as inputs (hereinafter referred to as the inputs);

(b)    goods falling under the First Schedule to the Central  Excise Tariff Act, 1985, other than-

(i)     the goods falling under heading No. 36.05;

(ii)    ingots and billets of non-alloy steel, on which the duty of excise has been paid under section 3A of the Central Excise Act, 1944, falling under sub-heading Nos. 7206.90 and 7207.90; and

(iii)   hot re-rolled products of non-alloy steel, on which the duty of excise has been paid under section 3A of the Central  Excise Act, 1944, of heading Nos. 7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92, 7211.99, 7213.90, 7214.90, 7215.90, 7216.10 and 7216.90, as final products (hereinafter referred to as the final products);

(c)    each of the following duties paid on inputs as specified duty (hereinafter referred to as the specified duty), namely:-

(i)     the duty of excise specified in the First Schedule to the Central  Excise Tariff Act, 1985 (5 of 1986), leviable under the Central  Excise Act, 1944 (1 of 1944);

(ii)    the special duty of excise specified in the Second Schedule to the Central  Excise Tariff Act, 1985 (5 of 1986), leviable under the Central  Excise Act, 1944 (1 of 1944) in relation to the goods falling under Sub-heading Nos. 5402.20, 5402.32, 5402.42, 5402.43, 5402.52 and 5402.62;

(iii)   the additional duty of excise under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(iv)    the additional duty of excise under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957); and

(v)    the additional duty under section 3 of the Customs Tariff Act, 1957 (51 of 1957) equivalent to the duty specified under sub-clauses (i), (ii), (iii) and (iv) above.

2.     Credit of specified duty paid on the inputs may be utilised for payment of duty of excise for any of the purposes mentioned in sub-rule (12) of rule 57F of the said rules subject to the following restrictions, namely: -

(a)    credit of specified duty , in so far as it relates to duty paid under the Central Excise Act, 1944, or the equivalent additional duty paid under section 3 of the Customs Tariff Act, 1975 (5 of 1975), shall be utilised only towards payment of duty of excise specified in the First Schedule to the Central  Excise Tariff Act, 1985, leviable under the said Central  Excise Act, 1944;

(b)    credit of specified duty , in so far as it relates to duty paid under the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978) or the equivalent additional duty paid under section 3 of the Customs Tariff Act, 1975, shall be utilised only towards payment of duty of excise leviable under the said Additional Duties of Excise (Textiles and Textile Articles) Act, 1978;

(c)    credit of specified duty , in so far as it relates to duty paid under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) or the equivalent additional duty paid under section 3 of the Customs Tariff Act, 1975, shall be utilised only towards payment of duty of excise leviable under the said Additional Duties of Excise (Goods of Special Importance) Act, 1957; and

(d)    credit of specified duty in respect of inputs produced or manufactured-

(i)     in a free trade zone and used in the manufacture of the final products in any other place in India; or

(ii)    by a hundred percent export �oriented undertaking or by a unit in an Electronic Hardware Technology Park or Software Technology Parks and used in the manufacture of the final products in any place in India,

shall be restricted to the extent which is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 paid on such inputs.

3.     Nothing contained in this notification, shall apply to an independent texturiser, that is to say, a manufacturer engaged in the manufacture of texturised yarn of polyesters falling under sub-heading No. 5402.32 and who does not have the facility in his factory (including plant and machinery) for manufacture partially oriented yarn of polyesters falling under sub-heading No. 5402.42.