Notification No. 9 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)
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S.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,
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 woven
pile fabrics or chenille yarn that may be cleared at the concessional rate of
sixty percent of normal duty, shall be determined in accordance with the
transitional provisions contained in paragraph 4A and aggregate value of
clearances of cartons, boxes, containers and cases of 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 can be cleared at the concessional rate of sixty per
cent of normal duty, shall be determined in accordance with the transitional
provisions contained in paragraph 4B.
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Sixty per cent of
normal rate of duty
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2.
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Omitted
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Omitted
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3.
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Omitted
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Omitted
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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 made clearances of an aggregate value of
sixty lakh rupees, comprising of fifty lakh rupees at the concessional rate of
sixty per cent of normal duty and ten lakh rupees at the concessional rate of
eighty per cent of normal duty. He shall be entitled to additional clearances
upto an aggregate value of forty lakh rupees, at the concessional rate of sixty
per cent of normal duty, during the remaining part of the financial year
2000-2001.
Illustration 2: A manufacturer made
clearances of an aggregate value of clearances of thirty lakh rupees at nil rate
during the financial year 2000-2001 under notification 8/ 2000-Central Excise
dated the 1st March 2000. Thereafter he opted for exemption under
this notification. As on the 31st day of August 2000, the
manufacturer made clearances of an aggregate value of sixty lakh rupees,
comprising of thirty lakh rupees at nil rate of duty, twenty lakh rupees at the
concessional rate of sixty per cent of normal duty and ten lakh rupees at the
concessional rate of eighty per cent of normal duty. He shall be entitled under
this notification to additional clearances upto an aggregate value of forty lakh
rupees, at the concessional rate of sixty per cent of normal duty, 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 the
concessional rate of sixty per cent of normal duty, fifty lakh rupees at the
concessional rate of eighty percent of normal duty ten lakh rupees at the normal
rate of duty. He shall not be entitled to any exemption under this notification
during the remaining part of the financial year 2000-2001.
2. The exemption contained in this
notification shall apply only subject to the following conditions, namely -
(i) a manufacturer who intends to avail the
exemption under this notification shall exercise his option in writing for
availing the exemption under this
notification before effecting the first clearances and such option shall be
effective from the date of exercise of the option and 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 jurisdictional 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 para 3 of this notification)
till the date of exercising the option.
(iii) where a manufacturer opts for availing the exemption
under this notification in terms of condition (i) above, the clearances of
specified goods already made during the financial year, prior to the exercise of
such option, shall be taken into account for computing the aggregate value of
clearances, as specified in the said Table.
He has subsequently availed of the concessional rate of
duty of five per cent ad valorem on clearances having an aggregate value of
rupees twenty lakhs under the same notification, when he opts to avail this
exemption. He is entitled under
this notification to additional clearances of an aggregate value of rupees
thirty lakhs at the concessional rate of 80% of normal duty.
(iv) 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.
(v) 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.
(vi) 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 exemption under
this notification in terms of paragraph 4;
(c) clearances of 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 the specified goods bearing a brand name or
trade name, whether registered or not, of another person, except in the
following cases, namely: -
(a) where specified goods,
being in the nature of components or parts of any machinery or equipment or
appliances, are cleared for sue as original equipment in the manufacture of the
said machinery of equipment or appliances by following the procedure laid down
in Chapter X of the Central Excise Rules, 1944.
Provided that manufacturers, whose aggregate value of
clearances for home consumption of such 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 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 manufacturers of woven pile
fabrics and chenille yarn: -
(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 below;
(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 the concessional rate of sixty percent of normal 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 the concessional rate of sixty percent of normal 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 the concessional rate of sixty percent of
normal 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.
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 the concessional rate of sixty percent of
normal 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 the concessional rate of sixty percent
of normal duty.
4B. 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 cartons,
boxes, containers and cases of corrugated paper or paperboard; corrugated paper
or paperboard or converted types of paper or paperboard intended for manufacture
of cartons, boxes, containers and cases of corrugated paper or paperboard,
against SI. No.1, in column (2):
(1) not
withstanding anything contained in paragraph 1, the aggregate value of
clearances of cartons, boxes, containers and cases of corrugated paper or
paperboard; corrugated paper or paperboard or converted types of paper or
paperboard intended for manufacture of cartons, boxes, containers and cases of
corrugated paper or paperboard, or any one or more of such goods against Sl. No.
1, in column(2), that shall be allowed to be cleared at the concessional rate of
sixty per cent of normal 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 the concessional rate of
sixty per cent of normal duty.
(3) for the
purposes of these transitional provisions, the aggregate value of clearances
shall mean the aggregate value of clearances of cartoons, boxes, containers and
cases of corrugated paper or paperboard; corrugated paper or paperboard or
converted types of paper or paperboard intended for manufacture of cartons,
boxes, containers and cases of corrugated paper or paperboard, or any one or
more of such goods, 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� mean a brand name or trade name, whether registered
or not, that is to say 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
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), 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 Porcelain-ware or
both, where a manufacturer gets Chinaware or Porcelain-ware 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 Porcelain-ware 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
(i)
in the case of goods leviable to duty under the First Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986), at the rate specified for such
goods in that Schedule read with any relevant notification (other than this
notification or a notification in which exemption is based on the value or
quantity of clearances) issued under sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944).
(ii)
in the case of goods leviable to duty under the Second Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986), at the rate specified for such
goods in that Schedule read with any relevant notification (other than this
notification or a notification in which exemption is based on the value or
quantity of clearances) issued under sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944).
(G)
�clearances for home consumption� shall also 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 the difference between any duty
paid on clearances made before the 1st day of September, 2000 and the
concessional rate of sixty per cent of normal duty 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
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 Nos. 3703.10;
(ix) strip 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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