Notification No. 19 dated 1st March 2000
This Notification has been rescinded by
Notification No. 7/ 2001 dated 1st March 2001.
In exercise of the powers
conferred by sub-section (3) of section 3A of the Central Excise Act, 1944 (1 of
1944) and in supersession of the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No.36/98, Central Excise, dated the
10th December, 1998, the Central Government hereby specifies that 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, of the First Schedule to Central Excise
Tariff Act, 1985 (5 of 1986), manufactured or produced by an independent
processor with the aid of a hot-air stenter shall be -
(I) for the period upto the
31st day of March, 2000 -
(i) in the case of a
processing factory whose average value of processed fabric is upto and including
Rs.30 per sq.mtr., Rs.2.00 per square meter of the processed fabric, equivalent
to Rs.2.0 lakhs per chamber per month;
(ii) in the case of a
processing factory whose average value of processed fabric exceeds Rs.30 per
sq.mtr., Rs.2.50 per square meter of the processed fabric, equivalent to Rs.2.5
lakhs per chamber per month; and
(II) for the period on or after
the 1st day of April, 2000 -
(a) where the processor wants
to retain the option for redetermination of duty payable on the basis of actual
production in terms of sub-section (4) of section 3A:
(i) in
the case of a processing factory whose average value of processed fabric is upto
and including Rs.30 per sq.mtr., Rs.3.00 per square meter of the processed
fabric, equivalent to Rs. 3.0 lakhs per chamber per stenter; and
(ii) in
the case of a processing factory whose average value of processed fabric exceeds
Rs.30 per sq.mtr., Rs.3.50 per square meter of the processed fabric, equivalent
to Rs.3.5 lakhs per chamber per stenter per month.
(b) where the processor has
filed an annual declaration that he shall not exercise the option for
redetermination of duty payable on the basis of actual production under
sub-section (4) of section 3A:
(i) in the case of a processing factory whose
average value of processed fabric is upto and including Rs.30 per sq.mtr.,
Rs.2.00 per square meter of the processed fabric, equivalent to Rs.2.0 lakhs per
chamber per month;
(ii) in
the case of a processing factory whose average value of processed fabric exceeds
Rs.30 per sq.mtr., Rs.2.00 per square meter of the processed fabric, equivalent
to Rs.2.5 lakhs per chamber per month.
2. The number of chambers
(of a hot-air stenter) and the average value of the processed textile fabrics,
for the purpose of computation of the rate of excise duty prescribed in the
opening paragraph, shall be determined in terms of the Hot-air Stenter
Independent Textile Processors Annual Capacity Determination Rules, 2000.
3. The duty levied and
collected on such processed textile fabrics 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).
4. The duty levied and
collected on such processed textile fabrics shall be apportioned in the ratio of
2:5 between 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).
5. Notwithstanding
anything contained above or in any other provisions of the Central Excise Rules,
1944, the independent processor of processed textile fabrics shall not be
eligible to avail any credit of duty paid on inputs or capital goods under the
Central Excise Rules, 1944 or any notification issued thereunder.
6. Nothing contained in
this notification shall apply to a composite mill, i.e. a manufacturer or
processor, who 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 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 I: Unless otherwise
specified in any rule made under section 3A of the Central Excise Act, 1944 (1
of 1944), for the purposes of this notification, the goods shall be deemed to
have been manufactured or produced with the aid of a hot-air stenter, if they
are cleared from a factory where a hot-air stenter is installed , irrespective
of whether it is in use or not, or is in working condition or not.
Explanation II: For the purpose of
this notification, an �independent processor� means a manufacturer who is
engaged primarily in the processing of fabrics with the aid of power and who
also has the facility in his factory (including plant and equipment) for
carrying out heat-setting or drying, with the aid of power or steam in a hot-air
stenter and who has no proprietory interest in any factory primarily and
substantially engaged in the spinning of yarn or weaving or knitting of fabrics,
on or after the 10th December,1998.
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