Government of IndiaMinistry of Finance Budget 97-98




Excise Notification

No. 4/97 Central Excise
Part 2

76 51.10 or    Woven fabrics of  wool      Nil           15
   51.11       when subjected to  any
               one  or  more  of  the
               following   processes,
               namely:-
                  (a)     Calendering
                  with          plain
                  rollers;
                  (b)  Blowing (steam
                  pressing).
               
77 5205.11,    Cotton    yarn,    not      Nil           --
   5205.19,    containing   synthetic
   5206.11 or  staple fibres-
   5206.12        (i)   supplied   in
                  plain    (straight)
                  reel hanks; or
                  
                  (ii)  sent  outside
                  the   factory    of
                  production      for
                  conversion     into
                  hank  yarn in plain
                  (straight)     reel
                  hanks  under   rule
                  96E  of the Central
                  Excise  Rules,1944;
                  or
                  
                  (iii)          used
                  captively  in   the
                  factory          of
                  production      for
                  conversion     into
                  hank  yarn in plain
                  (straight)     reel
                  hanks.
               
78 5205.11,    The   following  goods      Nil           --
   5205.19,    purchased     by     a
   5206.11 or  registered        Apex
   5206.12     Handloom  Co-operative
               Society,  the National
               Handloom   Development
               Corporation    or    a
               State       Government
               Handloom   Development
               Corporation,  and  the
               payment  for which  is
               made  by cheque  drawn
               by  such  Co-operative
               Society             or
               Corporation,  as   the
               case  may be,  on  its
               own    bank   account,
               namely :-
               
                  (a)    Cotton  yarn
                  (not     containing
                  synthetic    staple
                  fibres),   supplied
                  in    cross    reel
                  hanks;  or
                  
                  (b)   Cotton  yarn,
                  containing
                  polyester    staple
                  fibre    and    not
                  containing      any
                  other       textile
                  material, in  which
                  the  proportion  of
                  polyester    staple
                  fibre is more  than
                  40%  by  weight  of
                  the   total   fibre
                  content.
               

79 5205.11,    Cotton    yarn,    not      5%            --
   5205.19,    containing   synthetic
   5206.11 or  staple fibres
   5206.12
   
80 52.05 or    Cotton    yarn    (not      Nil           --
   52.06       containing   synthetic
               staple  fibre),  wound
               on  cones  on doubling
               machine  and  produced
               out  of  cotton  yarn,
               in   plain  (straight)
               reel  hanks, on  which
               the  appropriate  duty
               of  excise has already
               been  paid  and  meant
               for   conversion  into
               twofold yarn and  then
               reeling   into   plain
               (straight) reel hanks
               
81 5207.10,    Woven    fabrics    of      Nil           --
   5208.10     cotton
   or 5209.10
   
82 52.07,      Cotton         fabrics      Nil           --
   52.08 or    intended  for  use  in
   52.09       the   manufacture   of
               cotton absorbent lint
83 52.07,      Khadi,  that   is   to      Nil           --
   52.08 or    say,  any cloth  woven
   52.09       on   a   handloom   in
               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.
               
84 52.07,      Poly  Vastra, that  is      Nil           --
   52.08 or    to   say,  any   cloth
   52.09       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
               
85 52.07,      Cotton         fabrics      Nil           --
   52.08 or    processed without  the
   52.09       aid of power or 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.
               
86 52.07,      Cotton  fabrics  woven      Nil           --
   52.08 or    on    handlooms    and       
   52.09       processed   with   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
               
87 52.07,      Cotton  fabrics  woven                     
   52.08 or    on    handlooms    and                     
   52.09       processed   with   the                     
               aid  of power or steam                     
               by         independent                     
               processor approved  in                     
               this  behalf  by   the      2%            --
               Government  of   India                     
               on  the recommendation     4.8%           --
               of   the   Development
               Commissioner       for
               handlooms,-
               
                 (a)   not containing
                 polyester and  of  a
                 value  not exceeding
                 Rs.  30  per  square
                 metre;
                 (b)  other  (whether
                 or   not  containing
                 polyester).
               
               Explanation.- For  the
               purposes   of   cotton
               fabrics    woven    on
               handlooms,         the
               expression
               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  cotton or  weaving
               of cotton  fabrics
               
88 52.07,      Fabrics    woven    on      5%            --
   52.08 or    looms    other    than
   52.09       handlooms          and
               subjected    to    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.  30   per
               square metre
               
89 52.07,      Woven    fabrics    of      Nil           15
   52.08 or    cotton  when subjected
   52.09       to  any one or more of
               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
                  (12)         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,  OcalenderingO
               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
               Odenim   fabricsO   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.
               
90 5307.11,    Goods of jute               Nil           --
   5307.12,
   53.10,
   5607.10,
   5702.12,
   5703.20,
   58.01,
   58.02,
   58.06,
   6305.10
   
91 53.04 or    Sisal    and    manila      Nil           --
   53.08       fibre     and     yarn
               thereof,  in  relation
               to  the manufacture of
               which  no  process  is
               ordinarily carried  on
               with the aid of power
               
92 5309.10,    The  following  goods,      Nil           --
   5311.10     if   no  credit  under
               rule  57A or rule  57Q
               of  the Central Excise
               Rules,  1944 has  been
               availed, namely:-
               (a)  Woven fabrics  of
               flax; or
               (b)  Woven fabrics  of
               ramie.
               
93 5306.11,    The  following  goods,      5%            --
   5306.19 or  namely :-
   5308.14        (a)     Flax   yarn
                  containing  85%  or
                  more by weight of
                         flax;
                    (b)   Ramie  yarn
                  containing  85%  or
                  more by weight
                        of ramie; or
               
94 53.11          Woven  fabrics   of      8%            --
               ramie                        
95 5402.10,54  Nylon  filament   yarn      Nil           --
   02.41,      or       polypropylene
   5402.49,    multifilament yarn  of
   5402.51,    210    deniers    with
   5402.59,    tolerance  of  4   per
   5402.61     cent.
   or 5402.69
   
96 5404.10     Nylon     monofilament      Nil           --
               yarn,   of   denierage
               210,  330,  420,  630,
               840,  1050,  1260   or
               1680,  with  tolerance
               of 4 per cent.
               
97 54.02       The  following  goods,      18%           --
               namely :-
                  (a)  Nylon filament
                  yarn   above    750
                  deniers;
                  (b)           Nylon
                  filament       yarn
                  (other         than
                  textured)        of
                  denierage  400  and
                  above    and     of
                  tenacity  exceeding
                  6.5    grams    per
                  denier;  or
                  (c)       Polyester
                  filament       yarn
                  (other         than
                  textured)        of
                  denierage     above
                  750     and      of
                  tenacity  exceeding
                  6.5    grams    per
                  denier.
               
98 5402.32 or  Twisted      polyester      Nil           --
   5402.52     filament          yarn
               manufactured  out   of
               textured   or    draw-
               twisted      polyester
               filament yarn  falling
               within Chapter  54  of
               the  said Schedule  on
               which  the appropriate
               duty  of excise  under
               the said Schedule,  or
               as  the  case may  be,
               the   additional  duty
               leviable   under   the
               Customs         Tariff
               Act,1975    (51     of
               1975),   has   already
               been paid
               
99 5402.31 or  Twisted          nylon      Nil           --
   5402.51     filament          yarn
               manufactured  out   of
               nylon  filament   yarn
               including  crimped  or
               textured         nylon
               filament yarn  falling
               within Chapter  54  of
               the  said Schedule  on
               which  the appropriate
               duty  of excise  under
               the said Schedule,  or
               as  the  case may  be,
               the   additional  duty
               leviable   under   the
               Customs         Tariff
               Act,1975    (51     of
               1975),   has   already
               been paid
               
               
100 5403.20 or Twisted        viscose      Nil           --
    5403.32    filament          yarn
               manufactured  out   of
               viscose filament  yarn
               including     textured
               viscose filament  yarn
               falling         within
               Chapter  54   of   the
               said    Schedule    on
               which  the appropriate
               duty  of excise  under
               the   said   Schedule,
               or  as  the  case  may
               be,   the   additional
               duty   leviable  under
               the   Customs   Tariff
               Act,1975    (51     of
               1975),   has   already
               been paid
               
101 5402.39or  Twisted  polypropylene      Nil           --
    5402.59    filament          yarn
               manufactured  out   of
               polypropylene
               filament    yarn    on
               which      appropriate
               duty  of excise  under
               the said Schedule,  or
               as  the  case may  be,
               the   additional  duty
               leviable   under   the
               Customs  Tariff   Act,
               1975   (51  of  1975),
               has already been paid
               
102 54.02      Spandex yarn                13%           --
             
103 5404.10    Monofilament  of  high      Nil           --
               density   polyethylene
               or  polypropylene,  if
               no  credit under  rule
               57A   or  57Q  of  the
               Central Excise  Rules,
               1944 has been availed
               
104  5403.20,  Viscose filament  yarn      5%            --
     5403.31,  purchased     by     a
     5403.32or registered        Apex
     5403.41   Handloom  Co-operative
               Society,  the National
               Handloom   Development
               Corporation    or    a
               State       Government
               Handloom   Development
               Corporation,  and  the
               payment  for which  is
               made  by cheque  drawn
               by  such  Co-operative
               Society             or
               Corporation,  as   the
               case  may be,  on  its
               own bank account
               
105 5406.21,   Fabrics  of  polyester      Nil           --
    5406.22,   filament          yarn
    5406.23 or containing cotton  and
    5406.29    polyester       staple
               fibre  in  which   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
               
106 5406.21,   Woven          fabrics      Nil           --
    5406.22,   (excluding fabrics  of
    5406.23,   polyester     filament
    5406.29,   yarn        containing
    5407.21,   cotton  and  polyester
    5407.22,   staple fibre in  which
    5407.23 or the   proportion    of
    5407.29    polyester       staple
               fibre    or   filament
               yarn  or both is  less
               than 70% by weight  of
               the     total    fibre
               content),    processed
               without  the  aid   of
               power  or steam,  with
               or  without the use of
               machines
               
107 5406.21,    Fabrics,   woven    on      Nil           --
    5406.22,    handlooms and,-
    5406.23,    (a)       processed
    5406.29,    without the aid  of
    5407.21,    power or steam; or
    5407.22,    (b)       processed
    5407.23 or  with  the  aid   of
    5407.29     power  or steam  by
                a  factory owned by
                a        registered
                handloom        co-
                operative   society
                or  any organisaion
                set      up      or
                approved         by
                Government for  the
                purpose          of
                development      of
                handlooms.
               
108 5406.10 or  Woven fabrics               Nil           --
    5407.10
   
109 5501.20    Polyester          tow      Nil           --
               consumed  within   the
               factory  of production
               in  the manufacture of
               polyester       staple
               fibre
               
               
110 55.05      All goods produced  in      18%           --
               a  factory other  than
               a   factory  producing
               man-made        staple
               fibres  or  man   made
               filament   yarns    of
               organic  polymers   by
               manufacturing
               processes,  either  by
               polymerisation      of
               organic  polymers   or
               chemical
               transformation      of
               natural        organic
               polymers,
               irrespective        of
               whether  such  factory
               produces   such   man-
               made     fibres     or
               filaments   only    or
               also manufactures  any
               other goods
               
111 55.10      Yarn   of   artificial      Nil           --
               staple fibre in or  in
               relation    to     the
               manufacture  of  which
               no      process     is
               ordinarily carried  on
               with the aid of power
               
112 55.10      Yarn   of   artificial      Nil           --
               staple   fibre    (not
               containing   synthetic
               staple fibres) -
                  (a)   supplied   in
                  plain    (straight)
                  reel hanks; or
                  (b)  used captively
                  in  the factory  of
                  production      for
                  conversion     into
                  hank  yarn in plain
                  (straight)     reel
                  hanks.
               
113 55.09 or   The   following  goods      Nil           --
    55.10      if   purchased  by   a
               registered        Apex
               Handloom  Co-operative
               Society,  the National
               Handloom   Development
               Corporation    or    a
               State       Government
               Handloom   Development
               Corporation,  and  the
               payment  for which  is
               made  by cheque  drawn
               by  such  Co-operative
               Society             or
               Corporation,  as   the
               case  may be,  on  its
               own    bank   account,
               namely:-
               
                  (a)     yarn     of
                  counts          not
                  exceeding   25   of
                  artificial   staple
                  fibre,          not
                  containing
                  synthetic    staple
                  fibres          and
                  supplied  in  cross
                  reel hanks;
                  
                  (b)     yarn     of
                  polyester    staple
                  fibre    containing
                  cotton         (not
                  containing      any
                  other       textile
                  material)  and   in
                  which           the
                  proportion       of
                  polyester    staple
                  fibre is less  than
                  70   per  cent.  by
                  weight    of    the
                  total         fibre
                  content;
                  
                  (c)     yarn     of
                  polyester    staple
                  fibre    containing
                  cotton,  ramie   or
                  artificial   staple
                  fibre or any on  or
                  more    of    these
                  fibres         (not
                  containing      any
                  other       textile
                  material)  and   in
                  which           the
                  proportion       of
                  polyester    staple
                  fibre is less  than
                  70   per  cent.  by
                  weight    of    the
                  total         fibre
                  content; or
                  
                  (d)     yarn     of
                  artificial   staple
                  fibre    containing
                  polyester    staple
                  fibres         (not
                  containing      any
                  other       textile
                  material)  and   in
                  which           the
                  proportion       of
                  polyester    staple
                  fibre is more  than
                  40%  by  weight  of
                  the   total   fibre
                  content and  in  or
                  in  relation to the
                  manufacture      of
                  which  any  process
                  is       ordinarily
                  carried   on   with
                  the aid of power.
               
114 55.10      Yarn     of     counts      8%            -
               exceeding    25     of
               artificial      staple
               fibre  (not containing
               synthetic       staple
               fibres)  supplied   in
               cross  reel hanks  and
               purchased     by     a
               registered        Apex
               Handloom  Co-operative
               Society,  the National
               Handloom   Development
               Corporation    or    a
               State       Government
               Handloom   Development
               Corporation,  and  the
               payment  for which  is
               made  by cheque  drawn
               by  such  Co-operative
               Society             or
               Corporation,  as   the
               case  may be,  on  its
               own bank account
               
115 51.06,     Multiple  (folded)  or      Nil           --
    51.07,     cabled  yarn,  whether
   5205.19,    or  not dyed, printed,
   5206.12,    bleached            or
   5402.61,    mercerised, meant  for
   5402.62,    use       in       the
   5402.69,    manufacture         of
   5403.41,    fabrics            and
   5403.42,    manufactured  out   of
   5403.49     yarn   falling  within
   5509.19,    Chapters  51,  52,  54
   5509.22,    or   55  of  the  said
   5509.32,    Schedule on which  the
   5509.42 or  appropriate  duty   of
   5510.12     excise under the  said
               Schedule,  or  as  the
               case   may   be,   the
               additional        duty
               leviable   under   the
               Customs         Tariff
               Act,1975    (51     of
               1975),   has   already
               been   paid,  provided
               the  factory where the
               yarn  is manufactured,
               does      not     have
               facilities  (including
               plant  and  equipment)
               for  producing  single
               yarn
               
116 51.06,     Single   yarn    dyed,      Nil           --
    51.07,     printed,  bleached  or
   5205.11,    mercerised,        and
   5206.11,    manufactured  out   of
   5402.31,    yarn   falling  within
   5402.39,    Chapters  51,  52,  54
   5402.41,    or   55  of  the  said
   5402.49,    Schedule on which  the
   5402.51,    appropriate  duty   of
   5402.59,    excise under the  said
   5403.20,    Schedule,  or  as  the
   5403.31,    case   may   be,   the
   5403.32,    additional        duty
   5403.33,    leviable   under   the
   5403.39,    Customs         Tariff
   5509.11,    Act,1975    (51     of
   5509.21,    1975),   has   already
   5509.31,    been   paid,  provided
   5509.41     the  factory where the
   or 5510.11  yarn  is  manufactured
               does      not     have
               facilities  (including
               plant  and  equipment)
               for  producing  single
               yarn
117 55.10      Cellulosic  spun  yarn      Nil           --
               (not        containing
               synthetic       staple
               fibre)  produced   out
               of   cellulosic   spun
               yarn  (not  containing
               synthetic       staple
               fibre)    in     plain
               (straight)        reel
               hanks,  on  which  the
               appropriate  duty   of
               excise   has   already
               been  paid,  wound  on
               cones    on   doubling
               machine   and    meant
               for   conversion  into
               twofold yarn and  then
               reeling   into   plain
               (straight) reel hanks
               
118 55         The  following  goods,      Nil           16
               namely:-
                  (a)       Polyester
                  staple        fibre
                  intended  for   use
                  for             the
                  manufacture      of
                  fabrics  containing
                  more  than  40  per
                  cent.   but    less
                  than  70 per cent.,
                  by  weight  of  the
                  said      polyester
                  fibre    under    a
                  programme  for  the
                  manufacture of  low
                  priced  fabrics  of
                  aforesaid
                  composition,   duly
                  approved,-
                         (I)  in  the
                  case   of   fabrics
                  woven            on
                  handlooms,  by  the
                  Chief     Executive
                  Officer   in    the
                  Khadi  and  Village
                  Industries
                  Commission   or   a
                  State   Khadi   and
                  Village  Industries
                  Board  or  by   the
                  Development
                  Commissioner    for
                  Handlooms;
                       (II)  in   the
                  case    of    other
                  fabrics,   by   the
                  Textile
                  Commissioner or  an
                  officer  not  below
                  the   rank   of   a
                  Joint     Secretary
                  in  the Ministry of
                  Textiles; or
                  
                  (b)       Polyester
                  fibre mentioned  at
                  (a)           above
                  contained  in   any
                  fents,   rags   and
                  chindies   of   the
                  said    low   price
                  fabrics, only  upto
                  an        aggregate
                  quantity  of   such
                  fents,   rags   and
                  chindies        not
                  exceeding     eight
                  per  cent.  of  the
                  total  quantity  of
                  clearances of  such
                  low price fabrics.
               
119 52.05,     Yarn   subjected    to      Nil           --
    52.06,     beaming,      warping,
    54.02,     wrapping,  winding  or
    54.03,     reeling or any one  or
    55.09 or   more      of     these
    55.10      processes,   with   or
               without  the  aid   of
               power   and   produced
               out  of  yarn  falling
               within Chapters  52,54
               or   55  of  the  said
               Schedule,   on   which
               the  appropriate  duty
               of  excise  under  the
               said  Schedule  or  as
               the  case may be,  the
               additional        duty
               leviable   under   the
               Customs  Tariff   Act,
               1975   (51  of  1975),
               has already been paid
               
120 52, 54 or  Yarn  consumed  within      Nil           --
    55         the     factory     of
               production   in    the
               manufacture         of
               multiple  (folded)  or
               cabled  yarn,  whether
               or  not dyed, printed,
               bleached            or
               mercerised,  and  such
               multiple  (folded)  or
               cabled     yarn     is
               purchased     by     a
               registered        Apex
               Handloom  Co-operative
               Society,  the National
               Handloom   Development
               Corporation    or    a
               State       Government
               Handloom   Development
               Corporation,  and  the
               payment  for which  is
               made  by cheque  drawn
               by  such  Co-operative
               Society             or
               Corporation,  as   the
               case  may be,  on  its
               own bank account
               
               
121 55.11,     Fabrics  of  man  made      Nil           --
    55.12,     staple  fibres   woven
    55.13 or   on  looms  other  than
    55.14      handlooms          and
               processed 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.



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