NOTIFICATION
NO. 11 /96-Central Excises (N.T.) New Delhi, dated the 23 rd July, 1996
1 Shravana, 1918 (Saka)
G.S.R. (E). In exercise of the powers conferred by sub-rule (2) of
rule 57A of the Central Excise Rules,1944, the Central Government hereby
declares the following inputs and the final products, namely:-
Inputs Final products
(i) goods falling within heading Processed fabrics falling within
No. 51.05 Chapter 52 (except sub-heading
Nos. 5207.10, 5208.10 and
(ii) goods falling within heading 5209.10) or Chapter 55
No. 55.01, 55.02, 55.03, 55.04 (except sub-heading Nos. 5511.10,
55.05, 55.06 or 55.07 5513.10 and 5514.10), or fabrics
of cotton or man made fibres,
(iii) goods falling within heading whether or not processed, falling
No. 51.06, 51.07, 52.05,52.06, within heading No. 58.01,58.02,
53.06,53.07,53.08,54.02,54.03, 58.06 (except sub-heading
54.04,54.05,55.09,55.10,56.04, No. 5806.20),60.01 or 60.02
56.05 or 56.06 (except sub-heading No. 6002.10
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The Central Government further declares that -
(i) the duty of excise under the Central Excises and Salt Act, 1944 (1
of 1944);
(ii) the additional duty under section 3 of the Customs Tariff Act, 1975
(51 of 1975); or
(iii) the additional duty of excise under section 3 of the Additional
Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978),
(hereinafter referred to as Tdeclared dutyU) shall be deemed to have been paid
on the inputs declared herein and the same shall be equivalent to the amount
calculated at the rate of 50% of the duty of excise leviable under the Central
Excises and Salt Act, 1944 (1 of 1944), read with any notification for the
time being in force, on the final products declared herein, and credit of the
declared duty so deemed to have been paid shall be allowed to the manufacturer
of the final products, without production of documents evidencing payment of
duty on the said inputs, at the time of clearance of the said final products:
Provided that the credit of declared duty allowed in respect of the said
inputs shall be utilised only towards payment of duty of excise leviable under
the said Central Excises and Salt Act on the said final products:
Provided further that-
(1) in respect of a composite mill, subject to clause (2) below, the
provisions of this notification shall apply only to such processed fabrics
which have been manufactured from unprocessed fabrics not woven in the same
composite mill;
(2) in respect of processed fabrics, manufactured by a composite mill,
which are lying in stock as on 1st day of August, 1996, the provisions of this
notification shall apply only if the appropriate duty of excise leviable under
the said Central Excises and Salt Act on declared inputs used in the
manufacture of said processed fabrics, have been paid;
(3) the provisions of this notification shall not apply where processed
fabric itself is used as an input for further processing;
(4) in respect of unprocessed fabrics, the provisions of this
notification shall apply to all manufacturers of fabrics other than a
composite mill.
2. This notification shall come into effect on and from 1st day of
August, 1996.
Explanation.- For the purposes of this notification, Rcomposite millS means a
manufacturer, who is engaged in the processing of fabrics with the aid of
power alongwith spinning of yarn and weaving or knitting or crocheting of
fabrics.
(TARUN KUMAR GOVIL)
UNDER SECRETARY TO THE GOVERNMENT OF INDIA
