NOTIFICATION New Delhi, dated the 1st March, 1997
No. 4 /97-CENTRAL EXCISE 10 Phalguna,1918 (Saka)
G.S.R. (E).- 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
excisable goods of description specified in column (3) of the
Table below or column (3) of the said table read with the
relevant List appended hereto, as the case may be, and falling
within the Chapter, heading No. or sub-heading No. of the
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986),
(hereinafter referred to as the said Schedule), specified in the
corresponding entry in column (2) of the said table, from so much
of the duty of excise leviable thereon which is specified in the
said Schedule, 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 in the
Annexure to this notification, the condition No. of which is
mentioned in the corresponding entry in column (5) of the said
table.
Explanation.- For the purposes of this notification, the rate
specified in column (4), is ad valorem rate, unless otherwise is
specified.
TABLE
S. Chapter or Description Rate Conditions
No heading of goods
No. or sub-
heading
No.
----------------------------------------------------------------
(1) (2) (3) (4) (5)
1. 1703.90 All goods, for use in Nil --
the manufacture of
goods other than
alcohols
2. 1901.19 Food preparations Nil 1
intended for free
distribution to
economically weaker
sections of the
society under a
programme duly
approved by the
Central Government or
any State Government
3. 21.08 The following goods, Nil --
namely :-
(i) Soya textured
protein, soya
yoghurt, soya
tofu, soya based
food preparations
for infants use,
soya milk powder,
soya noodles, soya
macaroni and soya
temph, whether or
not containing
other food
ingredients but
not containing
cocoa;
(ii) Papad, idli-
mix, vada-mix,
dosa-mix, jalebi-
mix, gulabjamun-
mix, namkeens such
as bhujiya,
chabena; and
(iii) Sweet meats
and snacks
4. 2202.30 All goods Nil --
5. 24.04 Biris, other than Nil --
paper rolled 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), 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.
6. 2502.29 All goods Rs. 200 per 2
manufactured in,- tonne
(I) factory using
vertical shaft
kiln, with
installed capacity
certified as not
exceeding 300
tonnes per day or
99,000 tonnes per
annum and the
total clearances
of cement produced
by the factory, in
a financial year,
shall not exceed
1,09,500 tonnes;
(II) factory
using rotary kiln,
with installed
capacity certified
as not exceeding
600 tonnes per
day or 1,98,000
tonnes per annum
and the total
clearances of the
cement produced by
the factory, in a
financial year,
shall not exceed
2,20,000 tonnes.
7. 26.01 to Ores Nil --
26.17
8. 27 Naphtha and Natural Nil 3 and 4
Gasoline Liquid for
use in the
manufacture of
fertliser or ammonia
9. 27 Naphtha used in a Nil 3 and 4
fertiliser plant
during shut-down and
start-up periods
10 27 Naphtha and Natural Nil 3 and 4
Gasoline Liquid
intended for use -
(i) within the Heavy
Water Plant at Baroda
or Tuticorin for the
manufacture of
Synthesis gas or
ammonia or both which
are to be utilised in
the manufacture of
Heavy Water in such
plants;
(ii) by M/s. Gujarat
State Fertilizer
Corporation, Baroda
or M/s. Southern
Petro Chemicals
Industrial
Corporation,
Tuticorin, for
manufacture of
synthesis gas or
ammonia or both and
if the synthesis gas
or ammonia or both so
manufactured is
supplied respectively
to the Heavy Water
Plants at Baroda or
Tuticorin for the
manufacture of Heavy
Water in such Plants.
11 27 Furnace oil intended Nil 3 and 4
for use as feedstock
in the manufacture of
fertilisers
12 27 Furnace oil intended 5% 3 and 4
for use otherwise
than as feedstock in
the manufacture of
fertilisers
13 27 Furnace oil intended 5% 3 and 4
for use by M/s.
Southern Petro
Chemicals Industrial
Corporation,
Tuticorin in the
manufacture of
synthesis gas or
ammonia or steam or
all or any of them
and the synthesis gas
or ammonia or steam
or all or any of them
so manufactured is
supplied to Heavy
Water Plant at
Tuticorin for
manufacture of Heavy
Water
14 27 Bio-gas Nil --
15 27 Lean gas obtained Nil --
from natural gas
16 27 Residues of petroleum Nil 3 and 4
oils or of oils
obtained from
bituminous minerals,
including heavy
petroleum stock, low
sulphur heavy stock
and other residual
fuel oils falling
under heading No.
27.13 of the said
Schedule, intended
for use as fuel for
the generation of
electrical energy by
electricity
undertakings owned by
or controlled by the
Central Government or
any State Government
or any State
Electricity Board or
any local authority
or a person licenced
under Part II of the
Indian Electricity
Act, 1910 (9 of 1910)
to supply electrical
energy or a person
who has obtained
sanction under
section 28 of the
said Electricity Act,
to engage in the
business of supplying
electrical energy,
except those who
produce electrical
energy not for sale
but produce it for
their own consumption
or for supply to
their own
undertakings.
17 27 Residues of petroleum Nil 3 and 4
oils or of oils
obtained from
bituminous minerals,
including heavy
petroleum stock, low
sulphur heavy stock
and other residual
fuel oils falling
under heading No.
27.13 of the said
Schedule, intended
for use as feedstock
in the manufacture of
fertilisers
18 27 Residues of petroleum 5% 3 and 4
oils or oils obtained
from bituminous
minerals, including
heavy petroleum
stock, low sulphur
heavy stock and other
residual fuel oils
falling under heading
No. 27.13 of the said
Schedule, intended
for use otherwise
than as feedstock in
the manufacture of
fertilisers
19 27 Low sulphur heavy 5% 3 and 4
stock (LSHS) used in
a fertiliser plant
during shut down and
start up periods
20 27.10 Kerosene received by Nil --
the factory from the
refinery intended for
use in the
manufacture of linear
alkylbenzene or heavy
alkylate and returned
by the factory to the
refinery from where
such kerosene is
received.
Explanation:- For the
purposes of the
exemption, the
quantity of kerosene
consumed in the
manufacture of linear
alkyl benzene or
heavy alkylate shall
be calculated by
subtracting from the
quantity of kerosene
received by the
factory manufacturing
linear alkyl benzene
or heavy alkylate,
the quantity of
mineral oil, falling
under heading No.
27.10 of the said
Schedule, generated
in such manufacture
and returned by the
factory to a
refinery, declared as
such under sub-rule
(2) of rule 140 of
the Central Excise
Rules, 1944.
21 27.11 Liquified Petroleum Nil --
Gases (LPG) received
by the factory from
the refinery intended
for use in the
manufacture of
Propylene and
returned by the
factory to the
refinery from where
such Liquified
Petroleum Gases (LPG)
is received.
Explanation:- For the
purposes of the
exemption, the
amount of Liquified
Petroleum Gases
consumed in the
manufacture of
propylene shall be
calculated by
subtracting from the
quantity of Liquified
Petroleum Gases
received by the
factory manufacturing
propylene the
quantity of Liquified
Petroleum Gases
returned by the
factory to the
refinery, declared as
such under sub-rule
(2) of rule 140 of
the Central Excise
Rules, 1944, from
which such Liquified
Petroleum Gases was
received.
22 27.11 Petroleum gases and Nil --
other gaseous
hydrocarbons received
by the factory from
the refinery intended
for use in the
manufacture of
Polyisobutylene and
returned by the
factory to the
refinery from where
such Petroleum gases
and other gaseous
hydrocarbons is
received.
Explanation - For
the purposes of the
exemption, the
quantity of the
petroleum gases and
other gaseous
hydrocarbons consumed
in the manufacture of
polyisobutylene shall
be calculated by
subtracting from the
quantity of the said
gases received by the
factory manufacturing
polyisobutylene the
quantity of the said
gases returned by the
factory to the
refinery, declared as
such under sub-rule
(2) of rule 140 of
the Central Excise
Rules, 1944, which
supplied the said
gases.
23 27, 28 Synthesis gas, if Nil --
used in the
manufacture of Heavy
Water
24 27 Kerosene, that is to 10% --
say, any hydrocarbon
oil (excluding
mineral colza oil and
white spirit) which
has a smoke point of
18 mm or more
(determined in the
apparutus known as
smoke point lamp in
the manner included
in the Bureau of
Indian Standards
Specification
ISI:1448 (P.31) -
1968 as in force for
the time being) and
is ordinarily used as
an illuminant in oil
burning lamps.
25 28 Sulphuric acid, Nil 4
oleum, oxygen and
ammonia used in the
manufacture of
fertilisers
26 28 Sulphuric acid used Nil --
in a fertiliser plant
for demineralisation
of water
27 28 Ammonia used in a Nil --
fertiliser plant in
refrigeration and
purification process
28 2808.10, All goods used in the Nil 4
2809.00 manufacture of
fertilisers
29 28 Ammonium chloride and Nil --
manganese sulphate
intended for
use -
(a) as
fertilisers; or
(b) in the
manufacture of
fertlisers,
whether directly
or through the
stage of an
intermediate
product
Explanation.-
"Fertilisers" shall
have the same meaning
assigned to it under
the Fertiliser
(Control) Order,
1985.
30 28 Gold potassium 18% of the
cyanide, manufactured value of --
from gold and used in such gold
the electronics potassium
industry. cyanide
excluding
the value
of gold used
in the
manufacture
of such
goods.
31 28, 38 or The following goods- 18% of the
71 (a) Catalysts, value of --
ingots, powder and material, if
sponge any, added
of any of the and the
following metals, amount
namely:- charged for
such manfuac-
(i) Gold (ii) ture
Silver (iii)
Platinum (iv)
Palladium
(v) Rhodium (vi)
Iridium (vii)
Osmium
(viii) Ruthenium;
(b) compounds of the
following metals, for
making such catalysts
and manufactured out
of used or spent
catalysts of such
metals or metals
recovered from old or
used articles, or
both, namely:-
(i) Gold (ii)
Silver (iii)
Platinum (iv)
Palladium
(v) Rhodium (vi)
Iridium (vii)
Osmium
(viii) Ruthenium.
32 28, 29 All chemicals used Nil --
in the manufacture of
centchroman
33 28, 29,30 Anaesthetics 8% --
34 28 Gold potassium Nil --
cyanide solution used
within the factory of
production for
manufacture of zari
35 28, 29 The bulk drugs Nil --
specified in List 1
Explanation.- For the
purpose of this
notification, the
expression "bulk
drugs" means any
pharamaceutical,
chemical, biological
or plant product
including its salts,
esters, stereo-
isomers and
derivatives,
conforming to
pharmacopoeial or
other standards
specified in the
Second Schedule to
the Drugs and
Cosmetics Act, 1940
(23 of 1940), and
which is used as such
or as an ingredient
in any formulation.
36 30 Formulations Nil --
manufactured from the
bulk drugs specified
in List 1.
Explanation.- For the
purposes of this
notification, the
expression
"formulation" means
medicaments processed
out of or containing
one or more bulk
drugs, with or
without the use of
any pharmaceutical
aids (such as
diluent,
disintegrating
agents, moistening
agent, lubricant,
buffering agent,
stabiliser or
preserver) which are
therapeutically inert
and do not interfere
with therapeutical or
prophylactic activity
of the drugs, for
internal or external
use, or in the
diagnosis, treatment,
mitigation or
prevention of disease
in human beings or
animals, but shall
not include any
substance to which
the provisions of
the Drugs and
Cosmetics Act, 1940
(23 of 1940) do not
apply.
37 28, 29 The goods specified Nil 4
in List 2, used for
the manufacture of
bulk drugs as
specified in List 1
38 29 Bulk drugs, namely :- Nil --
(i) Insulin
(ii) Zidovudine
39 30 Insulin and Nil --
Zidovudine
40 30 Desferrioxamine Nil --
injection
41 30 Deferiprone Nil --
42 31 All goods, other than Nil --
those which are
clearly not to be
used-
(a) as
fertilisers; or
(b) in the
manufacture of
other fertilisers,
whether directly
or through the
stage of an
intermediate
product
43 32 Nitrocellulose 8% --
lacquers produced in
Ordnance factories
belonging to the
Central Government
and intended for
consumption for
defence purposes or
for supply to Central
Government
Departments
44 32.04 or Finishing agents, dye Nil _
38.09 carriers to
accelerate the dyeing
or fixing of dye-
stuffs, printing
paste and other
products and
preparations of any
kind used in the same
factory for the
manufacture of
textiles and textile
articles
45 33 Henna powder, not Nil --
mixed with any other
ingredient
46 3401.11, Soap, if manufactured 8% 5
3401.12 or under a scheme for
3401.19 the sale of janatha
soap
47 36.05 Matches, in or in
relation to the
manufacture of which
any one or more of
the following
mechanical processes
is ordinarily carried
on with the aid of
power, namely:-
(i) the process
of giving -
(a) the cardboard
flats or strips,
the configuration
of a match box
including the
outer slide or
the inner slide,
or
(b) the veneer
flats or strips,
the configuration
of a match box Rs. 1.00 per 6
including the hundred
outer slide or boxes/ packs
the inner slide
with the use of Rs. 1.25 per
match paper; hundred
(ii) frame boxes 6
filling;
(iii) dipping of Rs. 7.50 per
splints in the hundred
composition for boxes.
match heads; 6
(iv) filling of
boxes with
matches;
(v) pasting of
labels on match
boxes or veneers
or cardboards;
(vi) affixing of
the Central
Excise stamps;
and
(vii) packaging,
and cleared for
home consumption
by the
manufacturer and
if such Matches
are-
(1) packed in boxes
or packs of not
exceeding 40 matches
each
(2) packed in boxes
of 50 matches each
(3) packed in boxes
of 300 matches each
48 36.05 Matches, in or in
relation to the
manufacture of which
none of the following
mechanical processes
is ordinarily carried
on with the aid of
power, namely:-
(i) The process
of giving -
(a) the cardboard
flats or strips,
the configuration
of a match box
including the
outer slide or
the inner slide,
or
(b) The veneer
Flats or strips,
the configuration Rs. 0.80 per 6
of a match box hundred
including the boxes/
outer slide or packs
the inner slide
with the use of Rs. 1.00 per
match paper; hundred 6
(ii) frame boxes
filling;
(iii) dipping of Rs. 6.00 per
splints in the hundred
composition for boxes. 6
match heads;
(iv) filling of
boxes with
matches;
(v) pasting of
labels on match
boxes or veneers
or cardboards;
(vi) affixing of
the Central
Excise stamps;
and
(vii) packaging,
and cleared for
home consumption
by the
manufacturer and
if such matches
are-
(1) packed in
boxes/packs of not
exceeding 40 matches
each
(2) packed in boxes
of 50 matches each
(3) packed in boxes
of 300 matches each
49 36.05 Matches, in or in
relation to the
manufacture of which
no process is
ordinarily carried on Rs. 0.40 per 7
with the aid of power hundred
and when such Matches boxes/
are- packs
(1) packed in Rs. 0.50 per
boxes/packs of not hundred 7
exceeding 40 matches boxes
each
Rs. 3.00 per
hundred
boxes 7
(2) packed in boxes
of 50 matches each
(3) packed in boxes
of 300 matches each
50 36.05 Matches, in or in
relation to the
manufacture of which
any process is
ordinarily carried on
with the aid of power Rs. 2.40 per --
and cleared for home hundred
consumption by a boxes/
manufacturer packed packs
in-
(1) boxes or packs of Rs. 3.00 per
not exceeding 40 hundred --
matches each boxes
Rs. 18.00
per hundred
boxes. --
(2) boxes of 50
matches each
(3) boxes of 300
matches each
51 38 Concrete mix Nil --
manufactured at the
site of construction
for use in
construction work at
such site
52 39.01 to Plastic materials Nil --
39.14 reprocessed from, or
produced out of, the
scrap or the waste of
goods falling under
Chapter 39, 54, 55,
59, 64 or 85
53 39.20 Polyvinyl chloride 18% --
(PVC) corrugated
roofing sheets
54 39.20 Strips and tapes of Nil --
polypropylene used in
the factory of its
production in the
manufacture of
polypropylene ropes
55 39.20 Strips of plastics 13% 8
intended for weaving
of fabrics or for
manufacture of sacks
or bags
56 39.20 Polyethylene coated 18% --
paper or Polyethylene
coated paper board,
other than the
following, namely:-
(a) Products
consisting of
sheets of paper or
paper board
impregnated,
coated or covered
with plastics
(including
thermoset resins
or mixtures
thereof or
chemical
formulations
containing
melamine, phenol,
urea or
formaldehyde with
or without curing
agents or
catalysts),
compressed
together in one or
more operation; or
(b) Products known
commercially as
"decorative
laminates".
57 39.23, All goods other than,- Nil 8
39.24 or (i) goods of
39.26 polyurethanes;
(ii) insulated
ware; and
(iii) bags or
sacks made out of
fabrics (whether
or not coated,
covered or
laminated with any
other material)
woven from strips
or tapes of
plastics; and
fabrics for making
such bags or sacks
58 39.04 Plastic material Nil --
commonly known as
polyvinyl chloride
compounds (PVC
compounds), used in
the factory of its
production for the
manufacture of goods
which are exempt from
the whole of the duty
of excise leviable
thereon or are
chargeable to "Nil"
rate of duty
59 39.17 Lay flat tubing 8% 8
60 39.03 Unexpanded Nil 9
polystyrene beads
purchased by the
Malaria Research
Centre
61 39 or 40 Nipples for feeding Nil --
bottles
62 40 Tread rubber 18% 10
compound, tread
rubber, camel-back,
cushion compound,
cushion gum, tread
gum and tread packing
strips
63 4011.20 or Two-wheeler tyres or 13% --
4013.20 tractor rear tyres,
and tubes for such
tyres
64 4011.90 or Tyres and tubes for 30% --
4013.90 tyres
65 40.12 Tyre flaps, of rubber 25% --
66 4011.90 or (a) Tyres of a kind Nil 11
4013.90 used on animal drawn
vehicles or handcarts
of size 5.00-19-6PR,
6.00-19-8PR, 7.00-19-
10PR, 8.00-19-10PR or 13% 11
6.00-20-8PR and inner
tubes for such tyres
used on animal drawn
vehicles or handcarts
(b) ) Tyres of a kind
used on animal drawn
vehicles or handcarts
of size 3.50-8 and
inner tubes for such
tyres used on animal
drawn vehicles or
handcarts
67 40.11, Tyres, flaps and Nil 4
40.12 or tubes used in the
40.13 manufacture of -
(a) power tillers
of heading
No.84.32 of the
said Schedule;
(b) two-wheeled or
three-wheeled
motor vehicles
specially designed
for use by
handicapped
persons
68 48 Paper splints for Nil --
matches, whether or
not waxed; Asphaltic
roofing sheets
69 48 Corrugated paper or Nil 12
paperboard or
converted types of
paper or paperboard,
intended for the
manufacture of goods
falling unser sub-
heading No.4819.12 of
the said Schedule
70 48 (a) Paper and 8% 13
paperboard or
articles made
therefrom
manufactured,
starting from the
stage of pulp, in a 5% 14
factory, and such
pulp contains not
less than 75% by
weight of pulp made
from materials other
than bamboo, hard
woods, soft woods,
reeds (other than
sarkanda) or rags.
(a) Paper and
paperboard or
articles made
therefrom
manufactured,
starting from the
stage of pulp, in a
factory, and such
pulp contains not
less than 75% by
weight of pulp made
from materials other
than bamboo, hard
woods, soft woods,
reeds (other than
sarkanda) or rags.
71 5105.10 Carded wool used Nil --
captively in the
manufacture of yarn
of wool
72 51.06 Yarn of wool of Nil --
counts upto 10 in
plain (straight) reel
hanks, whether single
or multiple (folded)
and intended for
manufacturing carpets
73 5110.10 or Woven fabrics of Nil --
5111.10 wool, if no credit
under rule 57A or
rule 57Q of the
Central Excise Rules,
1944, has been
availed
74 51.10 or The following fabrics Nil --
51.11 woven on handlooms,
namely:-
(a) certified as
OkhadiO 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,
Oindependent
processorO 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.
75 51.10 or Fabrics of wool, Nil --
51.11 woven on looms other
than handlooms and
subjected to any
process, not
containing any
worsted yarn or made
of shoddy yarn or
melton cloth (made of
shoddy yarn), where
the value of such
fabrics does not
exceed Rs. 100 per
square metre
