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Notification No. 17 dated 1st March 2000
In exercise of the powers conferred by sub-section (1) of section 5A of
the Central Excise Act, 1944 (1 of 1944) read with sub-section (3) of section 3
of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58
of 1957), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts excisable goods of the description
specified in column (3) of the Table below and falling within the Chapter,
heading No. or sub-heading No. of the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986), specified in the corresponding entry in column (2)
of the said Table, from so much of the aggregate of -
(a) the duty of
excise specified in the First Schedule to the said Central Excise Tariff Act;
and
(b) the duty of
excise specified in the First Schedule to the said Additional Duties of Excise
(Goods of Special Importance) Act,
(hereinafter referred to as the �aggregate duty�) as is in excess
of an amount calculated at the rate of sixteen percent ad valorem:
Provided that nothing contained in this notification shall apply
to an independent processor who is engaged primarily in the processing of woven
fabrics of cotton or woven fabrics of man-made fibres in a factory and who has
the facility in that factory (including plant and equipment) for carrying out
heat-setting or drying with the aid of power or steam in hot-air stenter, and
who has no proprietary interest in any factory primarily and substantially
engaged in the spinning of yarn of fabrics, on or after 10th
December, 1998, operating under any scheme of levy and collection of excise duty
notified under section 3A of the Central Excise Act, 1944 (1 of 1944) except in
respect of fabrics manufactured or produced prior to the 16th day of
December,1998 and cleared on or after that date.
2. The
exemption contained in this notification shall apply only subject to the
following conditions, namely: -
(i)
The aggregate duty of sixteen percent. ad valorem leviable on the
excisable goods specified in the Table below shall be apportioned equally
between the duty leviable under the said Central Excise Act and the said
Additional Duties of Excise (Goods of Special Importance) Act.
(ii)
The credit of the declared duty allowable as a proportion of the duty of
excise leviable under the Central Excise Act, in terms of the notification of
the Government of India in the Ministry of finance (Department of Revenue),
No.29/96-Central Excise (N.T.), dated the 3rd September, 1996, as
amended, shall be allowed only on such portion of the aggregate duty as is
apportioned towards the duty of excise leviable under the Central Excise Act.
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S. No.
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Chapter or heading No. or sub-heading No.
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Description
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(1)
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(2)
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(3)
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1.
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52.07 (except 5207.10), 52.08 (except 5208.10) or 52.09 (except
5209.10)
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Cotton fabrics, subjected to any process with the aid of power or
steam.
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2.
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52.07, 52.08 or 52.09
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Cotton fabrics woven on handlooms and processed with the aid of power
or steam by an independent processor approved in this behalf by the Government
of India on the recommendation of the Development Commissioner for Handlooms.
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3.
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54.06(except 5406.10) or 54.07 (except 5407.10)
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All goods
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4.
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55.11(except 5511.10), 55.12(except 5512.10), 55.13(except 5513.10) or
55.14(except 5514.10),
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All goods
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5.
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5801.22, 5801.32, 5802.22 or 5802.32
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All goods
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6.
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5802.51 or 5802.52
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Tufted textile fabrics of cotton (not containing any other textile
material)
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7.
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58.03
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All goods
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8.
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5804.11 or 5804.12
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Lace
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9.
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59.01
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All goods
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10.
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6001.12, 6001.22, 6001.92, 6002.30, 6002.43 or 6002.93
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All goods
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Explanation: For the purposes of
the exemption under S. No. 2, -
(i) the expression, �independent processor�
means a manufacturer, who is engaged exclusively in the processing of fabrics
with the aid of power and who has no proprietary interest in any factory engaged
in the spinning of yarn of cotton or weaving of cotton fabrics; and
(ii) the value of the fabrics shall be equal to
40% of the value determined under section 4 of the Central Excise Act, 1944 (1
of 1944).
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