I am directed to draw your attention to notification No. 22/98-CE (NT) dated 4th June, 1998 (hereinafter referred to as the said notification) issued under the provisions of rule 174, superseding notification No. 13/92-CE (NT) dated 14.5.92. The provisions for exemption from registration under rule 174 and filing of a 'declaration' remains the same as in the erstwhile notification 13/92-CE (NT), ibid, except the following changes that have been brought about by notification No. 22/98-CE (NT):

(1)      The declaration, wherever required, has to be filed only once and not every year.

(2)    Exemption From Declaration: The small manufacturers/ factories availing exemption based on 'value of clearances of goods', have been exempted from filing declaration under the said notification, if the value of clearances from one or more factory of a manufacturer or by one or more manufacturers from one factory, do not exceed the 'specified limit'.

2.     The expressions, 'Full exemption limit' and 'Specified limit' used in the said notification amplified:

(a)    The term full exemption limit' has already been defined in the said notification. To amplify, under notification No. 8/98-CE. dated 2.6.98 the full exemption limit is Rs. 50 lakhs. Similarly, in respect of other notifications, where exemption is based on the value of clearances, the value upto which goods are wholly exempted from payment of excise duty will be considered as full exemption limit.

(b)    The expression 'specified limit' has been defined in the Explanation to the said notification i.e. full exemption limit minus ten lakh rupees. For example, under notification No. 8/98-CE dated 2.6.98, the specified limit will be Rs. 40 lakhs.

3.     Since large numbers of small manufacturers are expected to benefit from this simplification of procedure, wide publicity should be given to these changes with the help of trade notices and the local media. The field formations may be suitably instructed regarding implications of these changes.

Regarding Central Excise-Exemption from Pre-authenticating the Invoices

Invoice dated 5^th June 1998

Attention to drawn to notification No. 15/98CE (NT) dated 2.6.98 wherein a proviso is added to Sub-Rule (7) of Rule 52A. By insertion of this Sub-Rule Commissioners may be general or special order exempt an assessee or class of assesses from pre-authenticating each foil of invoice book and from intimating serial number of the invoices.

However, Board has decided that the assesses paying duty of rupees five crores above in PLA, in a financial year would be treated as class of assesses eligible for the above exemption. It is further reiterated that, the exemption is restricted only to the aforesaid class of assesses.