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Notification No. 8 dated 1st March 2000 (As amended by notification no.
31/ 2000 dated 31st March 2000, 47/ 2000 dated 1st September 2000, 6/ 2001 dated
1st March 2001, 15/2001)
(i)
the duty of excise specified thereon in the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) and
(ii)
the special duty of excise specified thereon in the Second Schedule to
the said Central Excise Tariff Act, 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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Sl. No.
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Value of 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 one hundred lakh rupees made on
or after the 1st day of April in any financial year.
Provided that if
any clearances for home consumption have been made before the 1st day
of September, 2000 under this notification during the financial year 2000-2001,
whether at nil rate or otherwise, the aggregate value of such clearances shall
be taken into account for computing the limit of one hundred lakh rupees.
(Illustrations)
Provided further that in the financial year 2000-2001, in the period beginning with the
1st day of March, 2001 and ending on the 31st day of
March, 2001, both days inclusive, the aggregate value of clearances of, -
a) woven pile fabrics or
chenille yarn that may be cleared at nil rate of duty shall be determined in
accordance with the transitional provisions contained in paragraph 4A,
b) candles, footwear of a
retail sale price not exceeding Rs. 125, per pair, tableware and kitchenware of
glass, imitation jewellery, vacuum and gas filled bulbs of retail sale price not
exceeding Rs. 20 per bulb, monochrome television receivers, sunglasses for
correcting vision, toothbrushes, rubberised coir mattresses; paper or
paperboard; corrugated paper or paperboard or converted types of paper or
paperboard intended of manufacture of cartons, boxes, containers and cases of
corrugated paper or paperboard that may be cleared at nil rate of duty, shall be
determined in accordance with the transitional provisions contained in paragraph
4B.
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Nil
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2
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Omitted
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Five
per cent ad valorem
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3.
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Omitted.
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Nil
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Illustrations regarding Sl. No.1 of the table (In these Illustrations,
�clearances� means clearances for home consumption):
Illustration 1: As on the 31st
day of August 2000, a manufacturer has made clearances of an aggregate value of
forty lakh rupees at nil rate of duty. He shall be entitled to additional duty
free clearances upto an aggregate value of sixty lakh rupees only in the
remaining part of the financial year 2000-2001.
Illustration 2: As on the 31st
day of August 2000, a manufacturer has made clearances of an aggregate value of
sixty lakh rupees, comprising of fifty lakh rupees at nil rate of duty and ten
lakh rupees at the concessional rate of duty at five percent. He shall be
entitled only to additional duty free clearances upto an aggregate value of
forty lakh rupees only, during the remaining part of the financial year
2000-2001.
Illustration 3: As on the 31st
day of August 2000, a manufacturer has made clearances of an aggregate value of
one hundred and ten lakh rupees, comprising of fifty lakh rupees at nil rate of
duty, fifty lakh rupees at the concessional rate of duty of five percent and ten
lakh rupees at the normal rate of duty. He shall not be entitled to additional
clearances at nil rate of duty during the remaining part of the financial year
2000-2001.
2. The exemption contained in this notification
shall apply subject to the following conditions, namely: -
(i) A manufacturer has the
option not to avail the exemption contained in this notification and instead pay
the normal rate of duty on the goods cleared by him. Such option shall be
exercised before effecting his first clearances at the normal rate of duty. Such
option shall not be withdrawn during the remaining part of the financial year.
(ii) While exercising the option
under condition (i), the manufacturer shall inform in writing to the Deputy
Commissioner or 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 paragraph 3
of this notification) till the date of exercising the option;
(iii) The manufacturer shall not
avail the credit of duty under rule 57AB or rule 57AK
of the Central Excise Rules, 1944 on inputs used in
the manufacturer of the specified goods cleared for home consumption, the
aggregate value of first clearances of which, as calculated in the manner
specified in the said Table does not exceed rupees one hundred lakhs.
(iv) The manufacturer also does not
utilise the credit of duty under rule 57AB of the said rules, paid on capital
goods, for payment of duty, if any, on the aforesaid clearances, the aggregate
value of first clearances of which does not exceed rupees one hundred lakhs, as
calculated in the manner specified in the said Table.
(v) Where a manufacturer clears
the specified goods from one or more factories, the exemption in his case shall
apply to the aggregate value of clearances mentioned against each of the serial
numbers in the said Table and not separately for each factory.
(vi) Where the specified goods are
cleared by one or more manufacturers from a factory, the exemption shall apply
to the aggregate value of clearances mentioned against each of the serial
numbers in the said Table and not separately for each manufacturer.
(vii) The aggregate value of clearances of
all excisable goods for home consumption by a manufacturer from one or more
factories, or from a factory by one or more manufacturers, does not exceed
rupees three hundred lakhs in the preceding financial year:
3. For the purpose of
determining the aggregate value of clearances for home consumption, the
following clearances shall not be taken into account, namely: -
(a) 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) clearances bearing the brand name or
trade name of another person, which are ineligible for the grant of this
exemption in terms of paragraph 4;
(c) clearances of the specified goods
which are used as inputs for further manufacture of any specified goods within
the factory of production of the specified goods;
(d) clearances of strips of plastics
used within the factory of production for weaving of fabrics or for manufacture
of sacks or bags made of polymers of ethylene or propylene.
(e) clearances of hot re-rolled products
of non alloy steel falling under sub-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, lying in stock on 31st March, 2000, on which duty of
excise has been paid under section
3A of the Central Excise Act, 1944.
(f) clearances of ingots and billets of
non-alloy steel falling under sub-heading nos. 7206.90 and 7207.90, lying in
stock on 31st March, 2000, on which duty of excise has been paid
under section 3A of the Central
Excise Act, 1944.
4. The exemption
contained in this notification shall not apply to specified goods bearing a
brand name or trade name, whether registered or not, of another person, except
in the following cases: -
(a) where the 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 the specified goods for use as original equipment
does not exceed rupees fifty lakhs in the financial year 1999-2000 as calculated
in the manner specified in paragraph 1 may submit a declaration regarding such
use instead of following the procedure laid down in Chapter X of the said rules;
(b)
where the specified 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;
(c)
where the specified goods are manufactured in a factory located in a
rural area.
4A. The following transitional
provisions shall apply for the period from 1st March 2001 to 31st
March 2001, both days inclusive, in respect of the manufacturers of woven pile
fabrics and chenille yarn i.e. the goods specified in clause (a)
of the second proviso, against SI. No. 1, in column (2): -
(1) notwithstanding anything
contained in paragraph 1, the aggregate value of clearances of woven pile
fabrics or chenille yarn, or both that shall be allowed to be cleared at nil
rate of duty shall be determined in accordance with clauses 2 to 5;
(2) a manufacturer whose aggregate
value of clearances for home consumption, as on 28th February 2001
does not exceed rupees ninety lakhs is only entitled to make clearances for home
consumption of an aggregate value not exceeding ten lakhs, at nil rate of duty;
(3) a manufacturer whose aggregate
value of clearances for home consumption as on 28th February, 2001,
exceeds rupees ninety lakhs, is only entitled to make clearances for home
consumption, at nil rate of duty, of an aggregate value equal to the difference
between hundred lakhs and the aggregate value of clearances for home consumption
as on the 28th of February, 2001;
(4) a manufacturer whose aggregate
value of clearances for home consumption as on 28th February, 2001
exceeds rupees one hundred lakhs, is not entitled to make any clearances for
home consumption at nil rate of duty;
(5) for the purposes of these
transitional provisions, the aggregate value of clearances shall mean the
aggregate value of clearances of woven pile fabrics or chenille yarn, as the
case may be, determined in accordance with the provisions of paragraph 3 above.
Illustration 1: As on 28th February 2001, a manufacturer of woven pile
fabrics or chenille yarn has made clearances for home consumption of an
aggregate value of rupees eighty-five lakhs.
He is entitled to clearances of an aggregate value of rupees ten lakhs at
nil rate of duty.
Illustration 2:
As on 28th February
2001, a manufacturer of woven pile fabrics or chenille yarn has made clearances
for home consumption of an aggregate value of rupees ninety five lakhs. He is entitled to clearances of an
aggregate value of rupees five lakhs at nil rate of duty.
4B. The following transitional
provisions shall apply for the period 1st March 2001 to 31st
March 2001, both days inclusive, in respect of the manufacturers of goods
specified in clause (b) of the second proviso, against Sl. No. 1, in column (2):
-
(1) notwithstanding anything
contained in paragraph 1, the aggregate value of clearances of any one or more
of the goods specified in clause(b) of the second proviso, against Sl. No. 1, in
column(2), that shall be allowed to be cleared at nil rate of duty shall be
determined in accordance with clauses (2) and (3) below.
(2) a manufacturer is only
entitled to make clearances for home consumption, of an aggregate value not
exceeding rupees ten lakhs, at nil rate of duty.
(3) for the purposes of these
transitional provisions, the aggregate value of clearances shall mean the
aggregate value of clearances of any one or more of the goods specified in
clause(b) of the second proviso, against Sl. No. 1, in column(2), determined in
accordance with the provisions of paragraph 3 above.
5.
This notification shall come into force on the 1st day of
April 2000.
Explanation:
For the purposes of this notification, -
(A) �brand name� or
�trade name� means a brand name or a 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 the 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;
(i) in respect of specified
goods which have been notified under section 4A of the Central Excise Act 1944(1
of 1944), the value as determined in accordance with the provisions of that
section, and
(ii) in respect of specified goods other
than those referred to in sub clause (i), the value as determined in accordance
with the provisions of section 4 of the Central Excise Act, 1944 (1 of 1944), or
the tariff value fixed under section 3 of the said Act;
(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 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 aggregate of duty of excise specified in the First Schedule to
the said Central Excise Tariff Act, 1985(5 of 1986) and the special duty of
excise specified in the Second Schedule to the said Central Excise Tariff Act
read with any relevant notification (other than this notification or a
notification in which exemption is based on the value or quantity of clearance)
issued under sub-section (1) of section 5A of the said Central Excise Act,1944 ;
(G) �clearances for home
consumption�, wherever referred to in this notification, shall include
clearances for export to Bhutan and Nepal.
(H) � rural
area� means the area comprised in a village as defined in the land revenue
records ,excluding-
(i) the area under any
municipal committee, municipal corporation, town area committee, cantonment
board or notified area committee, or
(ii) any area that may be notified as an urban area
by the Central Government or a State Government.
(I) refund of duty paid at
the concessional rate of five per cent on any clearances made before the 1st
day of September 2000 on the ground that such clearances are included in
the aggregate value of clearances under Sl. No.1 of the TABLE, shall not be
admissible.
(I) �retail sale price�
means the maximum price at which the excisable goods in packaged form may be
sold to the ultimate consumer and includes all taxes, local or otherwise,
freight, transport charges, commission payable to dealers and all charges
towards advertisement, delivery, packing, forwarding and the like, as the case
may be, and the price is the sole consideration for such sale.
ANNEXURE
1. All goods
specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986),
other than the following, namely: -
(i) all goods which
are chargeable to nil rate of duty or are exempt from the whole of the duty of
excise leviable thereon;
(ii) all goods
falling under heading No. 09.02;
(iii) all goods falling under
heading No. 21.06 and sub-heading Nos. 2101.10 and 2101.20;
(iv) all goods falling under
Chapter 24 of the said Schedule (other than unbranded chewing tobacco and
preparations containing chewing tobacco, falling under heading No. 24.04 of the
said Schedule);
(v) all
goods falling under heading No. 25.04;
(vi)
sandalwood oil;
(vii) all goods falling
under heading No. 36.05;
(viii) all goods falling under
heading Nos. 37.01, 37.02, and sub-heading No. 3703.10;
(ix) strips of plastics intended for
weaving of fabrics or sacks, polyurethane foam and articles of polyurethane
foam; falling under Chapter 39;
(x) all goods falling under
Chapter 51 of the said Schedule other than those falling under sub-heading Nos.
5105.30 and 5105.40 and heading Nos. 51.06, 51.07, 51.08, 51.09, 51.10 and 51.11
(except woven fabrics of wool falling under heading Nos. 51.10 or 51.11) and
under 51.12;
(xi) all goods falling under Chapter 52
of the said Schedule other than goods falling under heading No. 52.04;
(xii) all goods falling under Chapter 53 of the
said Schedule except goods falling under heading Nos. 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);
(xiii) all goods falling under Chapter 54
of the said Schedule except goods falling under heading Nos. 54.01;
(xiv) all goods falling under Chapter 55
of the said Schedule except goods falling under heading Nos. 55.05, 55.08 and
shoddy yarn manufactured from used or new rags falling under heading No. 55.09
or 55.10;
(xv) all goods falling under Chapter 56
of the said Schedule except goods falling under heading Nos. 56.01, 56.02,
56.03, 56.04, 56.05 (other than of manmade filaments), Chenille yarn falling
under sub-heading no. 5606.00, 56.07( other than of jute), 56.08 and 56.09;
(xvi) all goods falling under
Chapter 57 of the said Schedule;
(xvii) all goods falling under Chapter 58 of the
said Schedule except goods falling under heading Nos. 58.03, 58.06, 58.07,
58.08, uncut grey (unprocessed) woven weft pile fabrics of cotton manufactured
from grey unprocessed cotton yarn falling under sub-heading No. 5801.21,
unprocessed woven pile fabrics of cotton falling under sub-heading no. 5801.21
and unprocessed woven pile fabrics of man-made fibres falling under sub-heading
no. 5801.31, fabrics of cotton or man-made fibres falling under sub-heading No.
5802.51, and unprocessed cotton terry towelling fabrics falling under
sub-heading No. 5802.21;
(xviii) all goods falling under Chapter 59 of the said
Schedule except goods falling under Heading Nos. 59.01, 59.05, 59.06, 59.08,
59.09 59.10, 59.11 and textile fabrics coated or laminated with preparations of
low-density polyethylene;
(xix) all goods falling under Chapter 60 of the
said Schedule except goods falling under sub-heading No.6002.10 and fabrics of
cotton man-made fibres not subjected to any process falling under heading Nos.
60.01 or 60.02;
(xixa) all goods falling under
Chapter 62;
(xx) blankets of wool falling
under Chapter 63 of the said Schedule;
(xxi) aluminium circles,
whether or not trimmed, falling under Chapter 76;
(xxii)
(A) All goods falling under
�
(a) heading No. 74.03, excluding the following goods
falling under sub-heading No.7403.21,namely -
(i) cast brass
bars/rods of a length not exceeding 3 feet,
(ii) cast brass bars/rods of a length not exceeding
10 feet used in the factory of production for making wires falling under
sub-heading No. 7408.29,
(iii) copper flats or a weight not exceeding 2
kilograms used for making copper strips falling under heading No. 74.09,
(iv) brass billets weighing upto five kilograms,
(b) heading No. 74.09 (excluding copper strips
produced from copper flats of a weight not exceeding 2 kilograms),
(c) sub-heading Nos.
7407.11, 7407.12, 7408.11, 7408.21; and
(B) Copper circles, whether
or not trimmed;
(C) Ball or roller bearings
falling under Chapter 84;
(xxiii) all goods falling under heading Nos 87.01,
87.02, 87.03, 87.04, 87.05, 87.06 and 87.11 [other than powered cycles and
powered cycle rickshaw (�powered cycle� or powered rickshaw means a
mechanically propelled cycle or, as the case may be, mechanically propelled
cycle rickshaw, which may also be peddled, if any necessity arises for so
doing];
(xxiv) all goods falling under
heading Nos 91.01 or 91.02;
(xxiva) All goods falling
under Chapter 93;
(xxv) all goods falling under
sub-heading Nos 9605.10
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