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Small Scale Sector (New Exemption Scheme w.e.f 1.4.1999)
Notification No. 10 dated 28th
February 1999 (As amended by 17/99, 22/99, 5/00, 11/00)
In exercise of the powers conferred by sub-section (1) of section 5A of
the Central Excise Act, 1944(1 of 1944), the Central Government, being satisfied
that it is necessary in the public interest so to do, hereby exempts clearances,
specified in column (2) of the Table below (hereinafter referred to as the said
Table), for home consumption, of excisable goods of the description specified in the Annexure appended to this notification
(hereinafter referred to as the specified goods), from so much of each of the
duties of excise specified thereon in the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986) or the Second Schedule to the said Central Excise
Tariff Act, as the case may be, 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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S. No.
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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 thirty lakh
rupees made on or after the 1st day of April in any financial year.
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Nil
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2.
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Clearances upto an aggregate value not exceeding twenty lakh rupees
immediately following the clearances specified against S. No. 1 above during the
financial year.
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Fifty percent of normal rate of duty
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3.
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All 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.
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Nil
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2. The
exemption contained in this notification shall apply only subject to the
following conditions, namely: -
(i) Omitted
(ii) Omitted
(iii) 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;
(iv) where the
specified goods are cleared by one or more manufacturers from the 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;
(v) 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, has not exceeded rupees one hundred lakhs in the preceding
financial year.
3.
For the purpose of determining the aggregate value of clearances of the
specified goods 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 such 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 below;
(c) clearances
of specified goods which are used as input for further manufacture of any
specified goods within the factory of production of the specified goods.
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 such
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;
Provided that manufacturers, whose aggregate value of clearances
for home consumption of such specified goods for use as original equipment does
not exceed rupees thirty lakhs as calculated in the manner specified in the said
Table, 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.
5. This
notification shall come into force on the 1st day of April, 1999
and shall remain in force upto and inclusive of the 31st day of
March, 2000.
Explanation: For the purposes of
this notification, -
(A) �brand name� or �trade name� shall
mean a brand name or 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 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;
(C) �value� means, -
(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) 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;
(E) �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
(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.
(F) �clearances for home consumption� shall
also include clearances of specified goods for export to Bhutan or Nepal.
(G) �clearances for home consumption�, shall
also include clearances for export to Bhutan or 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.
ANNEXURE
1.
All goods falling under heading Nos. 33.04, 33.05, and sub heading Nos.
3307.10, 3307.20, 3307.31, 3307.39, 3307.50 and 3307.90 of the First Schedule to
the said Central Excise Tariff Act.
2. Refrigerating
and air-conditioning appliances and machinery and parts thereof falling under
Chapters 84, 85 or 90 of the First Schedule to the said Central Excise Tariff
Act.
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