NOTIFICATION New Delhi, dated the 23rd July, 1996
No. 9/96-CENTRAL EXCISES 1 Shravana, 1918 (Saka)
G.S.R. (E).- In exercise of the powers conferred by sub-section (1)
of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), read with
sub-section (3) of section 3 of the Additional Duties of Excise (Goods of
Special Importance) Act, 1957 (58 of 1957), the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby exempts
goods specified in column (3) of the Table below and falling within the
chapter or heading No. or sub-heading No. of the Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986), as are specified in the corresponding
entry in column (2) of the said Table, from so much of the duty of excise
leviable thereon under the second mentioned Act, as is in excess of the amount
calculated at the rate specified in the corresponding entry in column (4) of
the said Table subject to any of the conditions specified below the said
Table, the condition No. of which is mentioned in the corresponding entry in
column (5) of the said Table:
Provided that the condition No. 1, wherever applicable in this
notification, shall come into effect on and from the 1st day of August, 1996.
TABLE
S. Chapter or Description Rate of Condition
No. heading duty No.
No. or sub-
heading No.
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(1) (2) (3) (4) (5)
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1. 24.04 Biris, other than paper rolled Nil --
biris, manufactured without the
aid of machines, by a
manufacturer, by whom or on
whose behalf no biris are sold
under a brand name (as defined
in NOTE 1 to chapter 24 of the
Schedule to the Central Excise
Tariff Act, 1985), in respect
of first clearances of such
biris for home consumption by
or on behalf of such
manufacturer from one or more
factories upto a quantity not
exceeding 20 lakhs cleared on
or after the 1st day of April
in any financial year
2. 5110.10 or Woven fabrics of wool Nil --
5111.10
3. 51.10 or The following fabrics woven on Nil --
51.11 handlooms, namely:-
(a) certified as RkhadiS by the
Khadi and Village Industries
Commission;
(b) processed without the aid
of power or steam;
(c) processed with the aid of
power by a factory owned by a
registered handloom co-
operative society or any
organisation set up or approved
by Government for the purpose
of development of handlooms; or
(d) processed by an independent
processor approved in this
behalf by the Government of
India on the recommendation of
the Development Commissioner
for handlooms
Explanation.-For the purpose of
the fabrics woven on handlooms,
Rindependent processorS means a
manufacturer who is engaged
exclusively in the processing
of fabrics with the aid of
power and who has no
proprietory interest in any
factory engaged in the spinning
of yarn of wool or weaving of
woollen fabrics.
4. 5110.21, Fabrics of wool woven on looms Nil --
5110.22, other than handlooms, not
5110.23, containing any worsted yarn or
5110.29, made of shoddy yarn or melton
5111.21, cloth (made of shoddy yarn) ,
5111.22, where the value of such fabrics
5111.23or does not exceed Rs. 100 per
5111.29 square metre
5. 51.10 or Woven fabrics of wool when Nil --
51.11 subjected to any one or more of
the following processes,
namely:-
(a) Calendering with plain
rollers; or
(b) Blowing (steam pressing).
6. 52.07, Cotton fabrics intended for use Nil --
52.08or in the manufacture of cotton
52.09 absorbent lint Nil --
7. 52.07, Khadi, that is to say, any Nil --
52.08or cloth woven on a handloom in
52.09 India either wholly from cotton
yarn or in admixture with silk
or woollen yarn, handspun in
India and certified as Khadi by
an officer duly authorised in
this behalf by the Khadi and
Village Industries Commission
8. 52.07, Poly Vastra, that is to say, Nil --
52.08or any cloth containing cotton and
52.09 polyester woven on handloom
from yarns hand spun in India
and certified as Poly Vastra by
an officer duly authorised in
this behalf by the Khadi and
Village Industries Commission
and processed by a factory
owned by the Khadi and Village
Industries Commission or any
organisation approved by the
Khadi and Village Industries
Commission for the purpose of
processing of Poly Vastra
9. 52.07, Cotton fabrics processed Nil --
52.08or without the aid of power or
52.09 steam
Explanation.- For the purpose
of the cotton fabrics
subjected to the process of
colour fixation by passing
steam over such fabrics shall
be deemed to have been
processed without the aid of
steam.
10. 52.07, Cotton fabrics woven on
52.08or handlooms and processed with
52.09 the aid of power or steam by a
factory owned by a registered
handloom co-operative society
or any organisation set up or
approved by the Government for
the purpose of development of
handlooms
11. 52.07, Cotton fabrics woven on --
52.08or handlooms and processed with
52.09 the aid of power or steam by
independent processor approved
in this behalf by the
Government of India on the
recommendation of the
Development Commissioner for
handlooms,-
(a) not containing polyester 2% ad --
and of a value not exceeding valorem
Rs. 25 per square metre;
(b) other (whether or not 4% ad
containing polyester) volorem
Explanation.-.For the purposes
of the cotton fabrics woven on
handlooms, Rindependent
processorS means a
manufacturer, who is engaged
exclusively in the processing
of fabrics with the aid of
power and who has no
proprietory interest in any
factory engaged in the spinning
of yarn of cotton or weaving of
cotton fabrics.
12. 52.07, Fabrics woven on looms other 5% ad --
52.08or than handlooms and subjected to volorem
52.09 any process with the aid of
power or steam, of cotton (not
containing any other textile
materials), where the value of
the fabrics does not exceed Rs.
25 per square metre
13. 52.07, Woven fabrics of cotton when Nil 1
52.08or subjected to any one or more of
52.09 the following processes,
namely:-
(1) Calendering (other than
calendering with grooved
rollers);
(2) Flanellete raising;
(3) Stentering;
(4) Damping on grey and
bleached sorts;
(5) Back filling on grey and
bleached sorts;
(6) Singeing, that is to
say, burning away of knots and
loose ends in the fabrics;
(7) Scouring, that is to
say, removing yarn size and
natural oil found in cotton;
(8) Cropping or butta
cutting;
(9) Curing or heat setting;
(10) Padding, that is to say,
applying starch or fatty
material on one or both sides
of the fabric;
(11) Expanding; or
ggg) Hydro-extraction with
the aid of power, that is to
say, mechanically extracting
or mechanically squeezing out
water from the fabric
Explanation.-I. For the
purposes of the woven fabrics
of cotton, RcalenderingS shall
include processing of cotton
fabrics with the aid of zero-
zero machine without a stenter
attachment;
Explanation.-II The exemption
to the woven fabrics of cotton
shall not apply to fabrics
commonly known as Rdenim
fabricsS or fabrics of yarns of
different colours, of 3-thread
or 4-thread twill, including
broken twill, warp faced, the
warp yarns of which are of one
and the same colour and the
weft yarns of which are
unbleached, bleached, dyed grey
or coloured a lighter shade of
the colour of the warp yarns.
14. 5406.21, Fabrics of polyester filament Nil --
5406.22, yarn containing cotton and
5406.23or polyester staple fibre in which
5406.29 the proportion of polyester
staple fibre or filament yarn
or both is less than 70% by
weight of the total fibre
content and processed by a
factory owned by a registered
handloom co-operative society
or any organisation set up or
approved by the Government for
the purpose of development of
handlooms
15. 5406.21, Woven fabrics (excluding Nil --
5406.22, fabrics of polyester filament
5406.23, yarn containing cotton and
5406.29, polyester staple fibre in which
5407.21, the proportion of polyester
5407.22, staple fibre or filament yarn
5407.23or or both is less than 70% by
5407.29 weight of the total fibre
content), processed without the
aid of power or steam, with or
without the use of machines
16. 5406.21, Fabrics, woven on handlooms Nil --
5406.22, and,-
5406.23,
5406.29, (a) processed without the
5407.21, aid of power or steam; or
5407.22,
5407.23or (b) processed with the aid
5407.29 of power or steam by a
factory owned by a registered
handloom co-operative
society or any organisaion
set up or approved by the
Government for the purpose of
development of handlooms
17. 55.11, Fabrics of man made staple Nil --
55.12, fibres, woven on looms other
55.13or than handlooms and processed
55.14 without the aid of power or
steam, with or without the
use of machines, other than
the following, namely:-
(a) Fabrics containing only
polyester and cotton in which
the proportion of polyester
staple fibre is less than 70%
by weight of total fibre
content; or
(b) Fabrics containing only
polyester staple fibre and
any one or more of the
following fibres, namely,
cotton, ramie and artificial
fibre in which the proportion
of polyester staple fibre is
more than 40% but less than
70% by weight of total fibre
content
18. 55.11, Fabrics of man made staple Nil --
55.12, fibres woven on handlooms and
55.13or processed without the aid of
55.14 power or steam, or fabrics of
man made staple fibres woven on
handlooms processed with the
aid of power or steam by a
factory owned by a State
Government Handloom Development
Corporation or an Apex Handloom
Cooperative Society approved by
the Government of India for the
development of Handlooms, other
than the following fabrics,
namely:-
(a) fabrics containing only
polyester and cotton in which
the proportion of polyester
staple fibre is less than 70%
by weight of total fibre
content; or
(b) fabrics containing only
polyester staple fibre and
any one or more of the
following fibres, namely,
cotton, ramie and artificial
fibre in which the proportion
of polyester staple fibre is
more than 40% but less than
70% by weight of total fibre
content
19. 55 Fabrics woven on handlooms, Nil --
containing only polyester and
cotton in which the proportion
of polyester staple fibre is
less than 70% by weight of
total fibre content or
containing only polyester
staple fibre and any one or
more of the following fibres,
namely, cotton, ramie and
artificial fibre in which the
proportion of polyester staple
fibre is more than 40% but less
than 70% by weight of total
fibre content and processed by
a factory owned by a State
Government Handloom Development
Corporation or an Apex Handloom
Co-operative Society approved,
in either case, in this behalf
by the Government of India on
the recommendation of the
Development Commissioner for
handlooms
20. 55 Poly Vastra, that is to say, Nil --
any cloth containing cotton and
polyester woven on handloom
from yarns hand spun in India
and certified as Poly Vastra by
an officer duly authorised in
this behalf by the Khadi and
Village Industries Commission
and processed by a factory
owned by the Khadi and Village
Industries Commission or any
organisation approved by the
Khadi and Village Industries
Commission for the purpose of
processing of Poly Vastra
21. 55 Synthetic fabrics consumed Nil --
within the factory in which it
is produced for the manufacture
of shoddy blankets falling
within Chapter 63 of the said
Schedule provided that such
fabrics are manufactured out of
shoddy yarn and in respect of
such blankets exemption from
the whole of the duty of excise
leviable thereon, is not
availed of
22. 55 Synthetic fabrics processed Nil --
within the factory in which it
is produced for the manufacture
of shoddy blankets falling
within Chapter 63 of the said
Schedule provided that such
fabrics are manufactured out of
shoddy yarn and the value of
synthetic shoddy blankets
manufactued out of such fabrics
does not exceed rupees one
hundred per square metre and
the procedure set out in
Chapter X of the Central Excise
Rules, 1944 is followed if the
said fabrics are processed
elsewhere than in the factory
of production.
23. 54or Woven fabrics of man made Nil 1
55 fibres subjected to any one or
more of the following
processes, namely:-
(1) Calendering with plain
rollers;
(2) Singeing, that is to say,
burning away of knots and
loose ends in the fabrics;
(3) Padding, that is to
say, application of natural
starch to one or both sides
of the fabrics;
(4) Back filling, that is
to say, application of
starch to one side of the
fabrics;
(5) Cropping, that is to
say, cutting away
mechanically of loose ends
from the fabrics;
(6) Hydro-extraction, that is
to say, mechanically
extracting, or mechanically
squeezing out water from the
fabric; or
(7) The process of blowing (steam
pressing) carried on woven
fabrics of acrylic fibre.
24. 5801.22 All goods of cotton (not 5% ad --
5802.22 or containing any other textile valorem
5802.52 material) subjected to any
process and whose value does
not exceed Rs. 25 per square
metre. 5% ad valorem --
25. 5801.11or Fabrics of wool not subjected Nil
5802.51 to any process
26. 5802.52 Fabrics of wool 5% ad --
valorem
27. 58.01 or All goods subjected to any Nil --
58.02 process without the aid of
power or steam
28. 60.01 or All goods processed without the Nil --
60.02 aid of power or steam
29. 6001.11 All goods of cotton Nil --
6001.21,
6001.91,
6002.42or
6002.92
30. 60.01or All goods (except goods falling Nil --
60.02 under sub-heading No. 6002.10)
not subjected to any process
31. 52,54or55 Fabrics of cotton or man made Nil 2
fibres woven in a prison and
subjected to further process
outside the prison by an
independent processor or a
composite mill
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Condition Conditions
No.
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1. The exemption to woven fabrics of wool, cotton or woven fabrics of man
made fibres shall not apply to such fabrics if processed in a factory
having facilities (including plant and equipment) for carrying out
bleaching, dyeing, or printing, or anyone or more of these processes
with the aid of power or steam.
2. The exemption to fabrics of cotton or man made fibres woven in a
prison shall be available provided that-
(a) a certificate to the effect that such fabrics have been woven in
a prison and have been sent for further processing to an independent
processor or a composite mill, outside the prison is given by the
Inspector General of the Prisons or an officer, duly authorised by him
in this behalf, in the Government of the State or the Union territory,
as the case may be;
(b) a separate account is maintained in respect of such fabrics by the said
independent processor or a composite mill and the said independent
processor or a composite mill produces a certificate or evidence to
the Assistant Commissioner of Central Excise within a period of 90
days or such extended period as may be permitted by the Commissioner
of Central Excise, to the effect that the said fabrics have been
returned after processing to the prison from which the fabrics were
received.
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(TARUN KUMAR GOVIL)
UNDER SECRETARY TO THE GOVERNMENT OF INDIA
