Notification No. 8/2001-CE Dated 01-03-2001
Supersession of the Notification No. 8/2000-CE, dated 01-03-2000 - Conditions for Exemption.-
In exercise of the powers
conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of
1944) and in supersession of the notification of the Government of India in the
Ministry of Finance (Department of Revenue) No. 8/2000-Central Excise, dated the
1st March, 2000, published in the Gazette of India vide number G.S.R. 186(E),
dated the 1st March, 2000, except as respects things done or omitted to be done
before such supersession, 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, -
(i) the duty of excise
specified thereon in the First Schedule to the Central Excise Tariff Act, 1985
(5 of 1986); and
(ii) 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:-
Table
Sl. No. |
Value
of clearances |
Rate of
duty |
(1) |
(2) |
(3) |
1. |
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. |
Nil |
2. |
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. |
Nil |
2.
The exemption contained in
this notification shall apply subject to the following conditions, namely :-
(i) A manufacturer has the option
not to 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shall not be withdrawn during the remaining part of the financial year.
(ii) While exercising the option
under condition (i), the manufacturer shall inform in writing to the 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
paragraph 3 of this notification) till the date of exercising the option;
(iii) The manufacturer shall not
avail the credit of duty on inputs under rule 57AB or rule 57AK of the Central
Excise Rules, 1944, paid on inputs used in the manufacturer 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.
(iv) The manufacturer also does not
utilise the credit of duty on capital goods under rule 57AB or rule 57AK 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.
(v) 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.
(vi) 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.
(vii) 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 purposes 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;
(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 specified goods bearing a brand name or
trade name, whether registered or not, of another person, except in the
following cases :-
(a) where the 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. Manufacturers, whose aggregate
value of clearances of the specified goods for use as original equipment does
not exceed rupees one hundred lakhs in the financial year 2000-2001 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 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, 2001.
Explanation. -
For the purposes of this notification,-
(A) ”brand name” or “trade name”
means a brand name or a 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 ran 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 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 the
aggregate of duty of excise specified in the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) and the special duty of excise specified 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 clearance) issued under sub-section (1) of
section 5A of the said Central Excise Act, 1944 ;
(G) ”clearances for home
consumption”, wherever 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
All goods specified in the
First Schedule and the Second 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 First Schedule (other than unbranded chewing tobacco and preparations
containing chewing tobacco, falling under heading No. 24.04);
(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 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 of the First Schedule;
(x) all goods falling under Chapter
51 of the First 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 51.12;
(xi) all goods falling under Chapter
52 of the First Schedule other than goods falling under heading No. 52.04;
(xii) all goods falling under
Chapter 53 of the First 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 First Schedule except goods falling under heading Nos. 54.01;
(xiv) all goods falling under
Chapter 55 of the First 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 First Schedule except goods falling under heading Nos. 56.01, 56.02,
56.03, 56.04, 56.05 (other than of man-made 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 First Schedule;
(xvii) all goods falling under
Chapter 58 of the First 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
First 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 First
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;
(xx) all goods falling under Chapter 62 of the First
Schedule;
(xxi) blankets of wool falling under Chapter 63 of
the First Schedule;
(xxii) aluminium circles, whether or not trimmed,
falling under Chapter 76 of the First Schedule;
(xxiii) (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 three feet;
(ii) cast brass bars/rods of a
length not exceeding ten 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 two 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 two
kilograms);
(c) sub-heading Nos. 7407.11,
7407.12, 7408.11, 7408.21; and
(B) copper circles, whether or not
trimmed;
(xxiv) ball or roller bearings
falling under Chapter 84 of the First Schedule;
(xxv) 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)];
(xxvi) all goods falling under
heading Nos. 91.01 or 91.02 ;
(xxvii) all goods falling under
Chapter 93 of the First Schedule;
(xxviii)
all goods falling under
sub-heading No. 9605.10.
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