Notification No. 5 dated 1^st March 1994 (NT) {As amended by 24/94 (NT), 8/95 (NT)}

In exercise of the powers conferred by rule 57A of the Central Excise Rules, 1944, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 17/86-Central Excises, dated the 1^st March, 1986, the Central Government hereby specifies the final products described in column (3) of the Table hereto annexed and in respect of which -

(i)     the duty of excise under the Central Excises and Salt Act, 1944 (1 of 1944),

(ii)    the additional duty of excise under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978); and

(iii)   the additional duty of excise under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957); and

(iv)    the additional duty under section 3 of the Customs Tariff Act, 1975 (51 of 1975) equivalent to :-

(a)    the duty of excise specified under (i) above;

(b)    the duty of excise specified under (ii) above; and

(c)    the duty of excise specified under (iii) above,�; 

(hereinafter referred to as �specified duty�) paid on inputs, described in the corresponding entry in column (2) of the said Table, shall be allowed as credit when used in or in relation to the manufacture of the said final products and the credit of duty so allowed shall be utilised for payment of duty leviable on the said final products, or as the case may be, on such inputs, if such inputs have bee n permitted to be cleared under rule 57F of the said Rules:

Provided that -

(1)    credit of specified duty in respect of any inputs produced or manufactured-

(a)    in a free trade zone and used in the manufacture of final products in any other place in India;

(b)    by a hundred per cent export-oriented undertaking or a unit in an Electronic Hardware Technology Park or Software Technology Park� and used in the manufacture of final products in any place in India.

shall be restricted to the extent of duty which is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 (51 of 1975), equivalent to the duties of excise specified under (i) to (ii) above paid on such inputs;

(2)    the credit of specified duty allowed in respect of inputs shall be utilised towards payment of duty of excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944), on the final products or, as the case may be, on the inputs, if such inputs have been permitted to be cleared under rule 57F of the said Rules:

Provided that the credit of specified duty insofar as it relates to the additional duty of excise specified under (ii) above or the additional duty specified under (iv) (b) above, allowed in respect of inputs shall be utilised only towards payment of duty of excise leviable under the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), on the final products or, as the case may be, on the inputs, if such inputs have been permitted to be cleared under rule 57F of the said Rules:

Provided further that the credit of specified duty in so far as it relate to the additional duty of excise specified under (iii) above or the additional duty specified under (iv) (c) above, allowed in respect of inputs shall be utilised only towards payment of duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), on the final products or, as the case may be, on the inputs, if such inputs have been permitted to be cleared under rule 57F of the said Rules.�;

Provided further that-

(1)    the credit of specified duty paid in respect of inputs, namely, vegetable products falling under sub-heading No. 1504.00 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the manufacture of final products in any place in India shall be restricted to the extend of Rs. 500 per tonne or the actual duty paid, whichever is less:

(2)    the credit of specified duty paid in respect of inputs, namely, the goods falling under heading Nos. 72.30 and 73.27 and obtained from breaking-up of ships, boats and other floating structures as are manufactured in India and used in the manufacture of final products in any place in India shall be restricted to the extent of Rs. 920 per tonne or the actual duty paid, whichever is less:

(3)    the excess credit, if any, available in the separate RG 23A account maintained in terms of the fourth proviso to erstwhile notification No. 177/86-Central Excises, dated the 1^st March, 1986 in respect of the specified duties paid on the goods falling under heading No. 39.04 of the said Schedule shall not be allowed to be utilised for payment of duty on  any excisable goods or refunded to the manufacturer:

Provided that nothing contained in the above proviso will apply in respect of specified duty paid on goods falling under heading No. 39.04 which, -

(a) are lying in stock on the 1^st day of March 1994 or

(b) are used in the manufacturer of final products which are cleared from the factory on or after the 1^st day of March, 1994.