NOTIFICATION New Delhi, the 1st March,1997
No.7/97-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
clearances, specified in column (2) of the Table below, for
home consumption, of the excisable goods of the description
specified in the Annexure appended to this notification
(hereinafter referred to as Othe specified goodsO), from so
much of the duty of excise leviable thereon which is
specified in the Schedule to the Central Excise Tariff Act 1985
(5 of 1986), as is in excess of the amount calculated at the
rate specified in column (3) of the said Table against such
clearances.
T A B L E
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S.N Clearances Rate
(1) (2) (3)
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1. First clearances upto an aggregate Nil
value not exceeding rupees thirty
lakhs made on or after 1st day of
April in a financial year.
2. Clearances not exceeding rupees Three per cent.
twenty lakhs immediately following ad valorem
the clearances specified against
S.No. 1 above.
3. Clearances not exceeding rupees Five per cent.
fifty lakhs immediately following ad valorem
the clearances specified against
S.No.2 above.
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2. The exemption contained in this notification shall apply
only subject to the following
conditions, namely:-
(i) A manufacturer has the option to not avail the exemption
under this notification and to pay the appropriate duty of
excise leviable, under the Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986) read with any notification issued
under sub-section (1) of section 5A of the said Central Excise
Act, but for the exemption contained in paragraph 1, and such
option once exercised in a financial year cannot be withdrawn
in the same financial year under any circumstances.
(ii)The manufacturer does not avail credit of duty (under rule
57A of the Central Excise Rules, 1944) paid on inputs used in
or for the manufacture of the specified goods, the aggregate
value of first clearances of which does not exceed rupees one
hundred lakhs in the relevant financial year.
(iii)The aggregate value of clearances of all excisable goods
for home consumption (including clearances for export to Bhutan
or Nepal) by a manufacturer from one or more factories, or from
a factory by one or more manufacturers, has not exceeded
rupees three hundred lakhs in the preceding financial year:
Provided that for the purpose of determining the aggregate
value of clearances, the following clearances shall not be
taken into account:-
(a) any 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) any clearances bearing the brand name or trade name of
another person, which are ineligible for the grant of this
exemption in terms of paragraph 3 below;
(c) any 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.
Such clearances of specified goods used as inputs shall be
deemed to be exempt from the whole of the duty of excise
leviable thereon;
(d) any 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.
(iv) Where a manufacturer clears the specified goods from one
or more factories, the exemption in his case shall apply for
the total value of clearances mentioned against each of the
serial numbers in the said table and not separately for each
factory.
(v) Where the specified goods are cleared by one or more
manufacturers from a factory the exemption shall apply for the
total value of clearances mentioned against each of the serial
numbers in the said Table, and not separately for each
manufacturer.
3.The exemption contained in this notification shall not
apply to 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
apliances 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 thirty
lakhs in a financial year, may submit a declaration
regarding such use instead of following the procedure laid
down in Chapter X of the said Rules;
(b) where the goods bear a brand name or trade name of the
Khadi and Village Industries Commission or of the State
Khadi and Village Industry Board or the National Small
Industries Corporation or the State Small Industries
Development Corporation or the State Small Industries
Corporation;
4. Explanation.- For the purposes of this notification,-
(a) "brand name" or "trade name" shall mean a brand name or
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 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
run 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 a 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.
5 This notification shall come into force on the 1st day of
April,1997.
ANNEXURE
(1) All goods falling under heading Nos. 51.06, 51.07, 51.08,
51.09, 51.10 (other than woven fabrics of wool), 51.11 (other
than woven fabrics of wool), 51.12, 52.04, 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), 54.01,
55.05, 55.08, 56.01, 56.02, 56.03, 56.04, 56.05 (other than of
man-made filaments), 56.07(other than of jute), 56.08, 56.09,
58.03, 58.06, 58.07, 58.08, 59.01, 59.05, 59.06, 59.08, 59.09,
59.10, 59.11, 63.01 (other than blankets of wool), 63.02,
63.03, 63.04, 63.05, 63.06 or 63.07 and sub heading Nos.
5105.30, 5105.40 and 6002.10 of the said Schedule.
(2) Fabrics of cotton or man made fibres falling under sub-
heading No 5802.51 or fabrics of cotton or man made fibres, not
subjected to any process, falling under heading Nos. 60.01 or
60.02.
(3) Rubber solution or vulcanizing solution; textile fabrics
coated or laminated with preparations of low density
polyethylene; powered cycles and powered cycle rickshaw;
(Opowered cycleO or Opowered cycle-rickshawO means a
mechanically propelled cycle or, as the case may be,
mechanically propelled cycle rickshaw, which may also be
pedalled, if any necessity arises for so doing); side cars of
motor cycles (including scooters); evaporative type of coolers
and parts of such coolers; cigarette lighters.
(4) Chewing tobacco and preparations containing chewing
tobacco, other than those having a brand name, falling under
heading No. 24.04.
(5) All other goods specified in the said Schedule other than
the following, namely:-
(i) all goods falling under Chapter
24,51,52,53,54,55,56,57,58,59,60,61 or 62;
(ii) all goods falling under heading Nos.21.06, 25.04,
33.04, 33.05, 36.05, 37.01, 37.02, 40.05, 72.06, 72.07,
72.18, 72.24, 84.71, 85.21, 85.28, 87.01, 87.02, 87.03,
87.04, 87.05, 87.06, 87.11, 91.01, 91.02 or 96.13;
(iii) all goods falling under sub-heading Nos. 2101.10,
2101.20, 3307.10, 3307.20, 3307.30, 3307.90, 3703.10,
4006.10 or 9605.10;
(iv) sandal wood oil; strips of plastics intended for
weaving of fabrics or sacks; polyurethane foam and articles
of polyurethane foam; plates, sheets and strip, falling
under heading No. 40.08, for resoling or repairing or
retreading rubber tyres; and refrigerating and
airconditioning appliances and machinery and parts and
accessories thereof falling under Chapter 84, 85 or 90;
(v) cold rolled stainless steel pattis/pattas falling under
Chapter 72;
(vi) copper circles, whether or not trimmed, falling under
Chapter 74;
(vii) aluminium circles, whether or not trimmed, falling
under Chapter 76.
NAVNEET GOEL)
UNDER SECRETARY TO THE GOVERNMENT OF INDIA