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Small Scale Sector (New Exemption Scheme w.e.f 1.4.1999)
Notification No.
8 dated 28th February 1999 (As amended by 16/99, 22/99, 24/99, 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 the aggregate of -
(a)
the duty of excise specified thereon in the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986); and
(b) 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 fifty 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 fifty lakh rupees immediately following the clearances specified
against Sl. No. 1 above during the financial year.
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Five percent ad valorem
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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) 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 under this notification and such option shall be effective
from the date of exercise of the option. Such option shall not be withdrawn
during the remaining part of the financial year except when an option is
exercised with respect to notification No. 9/99-CE dated 28th
February, 1999.
(ii) a manufacturer also the
option to not 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.
(iii) While exercising the option under
condition (i) or (ii), the manufacturer shall inform in writing to the 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.
(iv) The manufacturer shall not
avail of the credit of duty under rule 57A or rule 57B of the Central Excise
Rules, 1944, paid on inputs used in the manufacture 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.
(v) The manufacturer also does
not utilise the credit of duty under rule 57Q 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.
(vi) Where a manufacturer clears
the specifies 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.
(vii) 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.
(viii) 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 below;
(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.
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: -
(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 fifty lakhs in a financial year 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 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;
(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), 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 a
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 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 and the special duty of excise 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 clearances) issued under sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944).
(G) �clearances for home consumption�, where
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.
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, all goods falling under heading Nos. 33.04 and 33.05, and
sub heading Nos. 3307.10 3307.20, 3307.31, 3307.39, 3307.50 and 3307.90;
(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
heading No. 40.05 (except rubber solution or vulcanising solution), and sub-heading No. 4006.10
and plates, sheets and strips falling under heading No. 40.08, for resoling or
repairing or retreading rubber tyres;
(xi) 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;
(xii) all goods falling under Chapter 52
of the said Schedule other than goods falling under heading No. 52.04 and cotton
yarn not containing synthetic staple fibre, falling under heading No. 52.05 or
52.06;
(xiii) 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);
(xiv) all
goods falling under Chapter 54 of the said Schedule except goods falling under
heading No. 54.01;
(xv) 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;
(xvi) 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 man made filaments), 56.07 (other than of jute),
56.08 and 56.09;
(xvii) all
goods falling under Chapter 57 of the said Schedule;
(xviii) 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, 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;
(xix) 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;
(xx) 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;
(xxi) all
goods falling under Chapter 61 of the said Schedule;
(xxii) all
goods falling under Chapter 62 of the said Schedule;
(xxiii) blankets
of wool falling under Chapter 63 of the said Schedule;
(xxiv) all
goods falling under heading Nos. 72.06, 72.07, 72.18, 72.24 cold rolled
stainless steel pattis / pattas falling under chapter 72; ingots and billets of
non alloy steel falling under sub-heading Nos. 7206.90 and 7207.90 and 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, on which the duty of excise is paid under section
3A of the Central Excise Act, 1944 (1 of 1944);
(xxv) (A) all goods falling under -
(a) heading No. 74.03, excluding the following
goods falling under sub-heading No. 7403.21-
(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 of a weight not exceeding
2 kilograms used for making copper strips falling under heading No. 74.09.
(iv) brass billets weighting 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.
(xxvi) aluminium
circles, whether or not trimmed, falling under Chapter 76;
(xxvii) refrigerating and air conditioning appliances and machinery and
parts and accessories thereof
falling under Chapters 84, 85 and 90
(xxviii) all goods falling under heading
Nos. 85.21, 85.28;
(xix) 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);
(xxx) all
goods falling under heading Nos. 91.01 or 91.02;
(xxxi) all
goods falling under sub-heading Nos. 9605.10.
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