SSI Units - New Exemption Scheme - 38/97 - Central Excise - Tariff

SSI Units - New Exemption Scheme

Notification No. 38/97-C.E.

Dated 27-6-1997

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, (hereinafter referred to as the said Table) for home consumption, of excisable goods of the description specified in the Annexure appended to this notification (hereinafter referred to as the specified goods), from so much of the normal duty of excise leviable thereon as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3), of the said Table.

TABLE

2. The exemption contained in this notification shall apply only subject to the following conditions, namely :-

(i) A manufacturer intending to avail the exemption under this notification in a financial year shall exercise his option in writing for availing the exemption under this notification and such option shall be effective from the date of exercise of the option and cannot be changed during the financial year under any circumstances;

(ii) While exercising the option, the manufacturer shall inform in writing to the Assistant Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, giving the following particulars, namely :-

(a) name and address of the manufacturer;

(b) location/locations of factory/factories;

(c) description of specified goods produced;

(d) date from which option under this notification has been exercised;

(e) aggregate value of clearances of specified goods (excluding the value of clearances referred to in para 3 of this notification) till the date of exercising the option;

(iii) Where a manufacturer opts for the benefit of this notification, in terms of sub-clause (i) above, the clearances of specified goods already made during the financial year prior to the exercise of such option, shall be taken into account for computing the aggregate value of clearances, as specified in the said Table;

(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;

(vi) 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.

3. For the purpose of determining the aggregate value of clearances, the following clearances shall not be taken into account, namely :-

(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 exemption under this notification in terms of paragraph 4 below;

(c) any clearances of 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 the 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.

4. 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, namely :-

(a) where 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 appliances by following the procedure laid down in Chapter X of the Central Excise Rules, 1944. Manufacturers, whose aggregate value of clearances of such 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 -

(i) the Khadi and Village Industries Commission; or

(ii) a State Khadi and Village Industry Board; or

(iii) the National Small Industries Corporation; or

(iv) a State Small Industries Development Corporation; or

(v) a State Small Industries Corporation;

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 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, -

(a) in respect of specified goods falling under heading No. 33.03 and sub-heading Nos. 3307.41 and 3307.49 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), the value as determined in accordance with the provisions of section 4A of the Central Excise Act, 1944 ( 1 of 1944); and

(b) in respect of other specified goods, 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 of 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;

(F) "normal duty" means the duty of excise which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) read with any relevant notification (other than this notification or a notification in which exemption is based on the value or quantity of clearances) issued under sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944).

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 Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said Schedule).

(2) Uncut grey (unprocessed) woven weft pile fabrics of cotton manufactured from grey (unprocessed) cotton yarn falling under sub-heading No. 5801.21; 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; shoddy yarn manufactured from used or new rags falling under heading Nos. 55.09 or 55.10 and unprocessed cotton terry towelling fabric falling under sub-heading No. 5802.21 of the said Schedule.

(3) Rubber solution or vulcanizing solution; textile fabrics coated or laminated with preparations of low density polyethylene; powered cycles and powered cycle rickshaw (`powered cycle' or `powered cycle-rickshaw' 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.

(4) Chewing tobacco and preparations containing chewing tobacco, other than those having a brand name, falling under heading No. 24.04 of the said Schedule.

(5) All other goods specified in the said Schedule other than the following, namely :-

(i) all goods falling under Chapters 24, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61 or 62 of the said Schedule;

(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 or 91.02 of the said Schedule;

(iii) all goods falling under sub-heading Nos. 2101.10, 2101.20, 3307.10, 3307.20, 3307.31, 3307.39, 3307.50, 3307.90, 3703.10, 4006.10, 4008.22 or 9605.10 of the said Schedule;

(iv) sandalwood oil; strips of plastics intended for weaving of fabrics or sacks; polyurethane foam and articles of polyurethane foam; cold rolled stainless steel pattis/pattas falling under Chapter 72 of the said Schedule;

(v) copper circles, whether or not trimmed, falling under Chapter 74 of the said Schedule;

(vi) aluminium circles, whether or not trimmed, falling under Chapter 76 of the said Schedule;

(vii) refrigerating and airconditioning appliances and machinery and parts and accessories thereof falling under Chapters 84, 85 or 90 of the said Schedule.