Exemption to first clearances of specified goods upto the value of Rs. 30 lakhs and concessional duty thereafter in case of S.S.I. units having clearances not exceeding Rs. two crores in preceding year - 01/93 - Central Excise - Tariff

Exemption to first clearances of specified goods upto the value of Rs. 30 lakhs and concessional duty thereafter in case of S.S.I. units having clearances not exceeding Rs. two crores in preceding year

Notification No. 1/93-C.E.

Dated 28-2-1993

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944) (hereinafter referred to as the said Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in the Annexure below and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), (hereinafter referred to as the "specified goods"), and cleared for home consumption on or after the 1st day of April in any financial year, by a manufacturer from, -

(1) a factory, which is an undertaking registered with the Director of Industries in any State or the Development Commissioner (Small Scale Industries) as a small scale industry under the provisions of the Industries (Development and Regulation) Act, 1951 (65 of 1951),-

(a) in the case of first clearances of the specified goods upto an aggregate value not exceeding rupees thirty lakhs -

(i) in a case where a manufacturer avails of the credit of the duty paid on inputs used in the manufacture of the specified goods cleared for home consumption under rule 57A of the Central Excise Rules, 1944 (hereinafter referred to as the said Rules), from so much of the duty of excise leviable thereon which is specified in the said Schedule [read with any relevant notification issued under sub-rule (1) of rule 8 of the said Rules or sub-sec­tion (1) of section 5A of the said Act, and in force for the time being] as is equivalent to an amount calculated at the rate of 10 per cent ad valorem;

(ii) in any other case from the whole of the duty of excise leviable thereon.

(b) in the case of clearances, being the clearances of the specified goods of an aggregate value not exceeding rupees twenty lakhs, immediately following the said clearances of the value specified in sub-clause (a) under this clause, from so much of the duty of excise leviable thereon which is specified in the said Schedule [read with any relevant notification issued under sub-rule (1) of rule 8 of the said Rules or sub-section (1) of section 5A of the said Act, and in force for the time being], as is equivalent to an amount calculated at the rate of 10 per cent, ad valorem, and

(c) in the case of clearances, being the clearances of the specified goods of an aggregate value not exceeding rupees twenty five lakhs, immediately following the said clearances of the value specified in sub-clause (b) under this clause, from so much of the duty of excise leviable thereon which is specified in the said Schedule [read with any relevant notification issued under sub-rule (1) of rule 8 of the said Rules or sub-section (1) of section 5A of the said Act, and in force for the time being], as is equivalent to an amount calculated at the rate of 5 per cent ad valorem :

Provided that the amount of duty of excise payable on the specified goods under item (i) of sub-clause (a), or sub-clause (b), or sub-clause (c), shall not be less than an amount calculated at the rate of 5 per cent ad valorem :

Provided further that the aggregate value of clearances of the specified goods in terms of sub-clauses (a), (b) and (c) taken together, shall not exceed rupees seventy five lakhs.

(2) a factory, other than a factory, -

(a) which is specified in clause (1) of this paragraph, or

(b) which is registered with Directorate General of Technical Development under the provisions of the Industries (Development and Regulation) Act, 1951 (65 of 1951), -

in the case of first clearances of the specified goods upto an aggregate value not exceeding rupees ten lakhs from whole of the duty of excise leviable thereon.

2. The aggregate value of clearances of the specified goods for home consumption in a financial year -

(a) by a manufacturer from one or more factories; or

(b) from a factory by one or more manufacturers, -

(i) under sub-clause (a) of clause (1) and clause (2) of paragraph 1 taken together shall not exceed rupees thirty lakhs;

(ii) under sub-clauses (b) and (c) of clause (1) shall not exceed rupees twenty lakhs and twenty-five lakhs respectively; and

(iii) under clause (2), shall not exceed rupees ten lakhs.

3. Nothing contained in this notification shall apply if the aggregate value of clearances of all excisable goods for home consumption, -

(a) by a manufacturer, from one or more factories, or

(b) from any factory, by one or more manufacturers, had exceeded rupees two hundred lakhs in the preceding financial year.

4. The exemption contained in this notification shall not apply to the specified goods where a manufacturer affixes the specified goods with a brand name or trade name (registered or not) of another person who is not eligible for the grant of exemption under this notification :

Provided that nothing contained in this paragraph shall be applicable to the specified goods which are component parts of any machinery or equipment or appliances and cleared from a factory for use as original equipment in the manufacture of the said machinery or equipment or appliances and the procedure set out in Chapter X of the said Rules is followed :

Provided further that nothing contained in this paragraph shall be ap­plicable to the specified goods where a manufacturer affixes the specified goods with a brand name or trade name (registered or not) of the Khadi and Village Industries Commission or of the State Khadi and Village Industries Board.

ExplanationI. - For the purposes of this notification, the expression 'value' means either the value as determined in accordance with the provisions of section 4 of the said Act, or, as the case may be, according to the tariff values fixed or altered under section 3 of the said Act.

Explanation II. - For the purposes of computing the aggregate value of clearances under this notification, the clearances of any excisable goods, which are chargeable to nil rate of duty or, which are exempted from the whole of duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon the value or quantity of clearances made in a financial year) issued under sub-rule (1) of rule 8 of the said Rules or sub-section (1) of section 5A of the said Act, shall not be taken into account.

Explanation III. - For the purpose of computing the aggregate value of clearances under paragraph 1, 2 or 3, the clearances of any excisable goods where a manufacturer affixes the specified goods with a brand name or a trade name (registered or not) of another person who is not eligible for the grant of exemption under this notification, shall not be taken into account.

Explanation IV. - For the purposes of determining the value of clearances under this notification, in respect of Chinaware or Porcelainware or both, where a manufacturer gets such 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.

Explanation V. - For the purpose of this notification, clearances for home consumption shall also include clearances for export to Bhutan or Nepal.

Explanation VI. - Where any specified goods (hereinafter referred to as inputs) are used for further manufacture of specified goods within the factory of production of inputs, the clearances of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification.

Explanation VII. - For the purposes of determining the aggregate value of clearances under this notification, in respect of the specified goods, namely, sacks and bags made of polymers of ethylene or propylene, and falling under Heading No. 63.01 of the said Schedule, the value of clearances of strips of plastics used within the factory of production for weaving of fabrics or manufacture of the said sacks and bags shall not be taken into account.

Explanation VIII. - For the purposes of this notification, 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.

Explanation IX. - "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.

Explanation X. - For the purposes of this notification, where the specified goods manufactured by a manufacturer, are affixed with a brand name or trade name (registered or not) of another manufacturer or trader, such specified goods shall not, merely by reason of that fact, he deemed to have been manufactured by such other manufacturer or trader.

Explanation XI. - For the purposes of this notification, the expression "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.

ANNEXURE

(1) All goods falling under Heading No. 56.02, 73.07, 73.08, 73.09, 73.10, 73.11, 73.12, 73.13, 73.14, 73.15, 73.16, 73.17, 73.18, 73.19, 73.20, 73.21, 73.22, 73.23, 73.24, 73.26, 74.08, 74.12, 74.13, 74.14, 74.15, 74.16, 74.17, 74.18, or 74.19 of the said Schedule.

(2) All goods falling under sub-heading No. 0901.20, 0901.90, 0902.11, 0902.12, 0903.10, 5102.90, 5105.00, 5108.00, 5301.10, 5303.10, 5304.00, 5308.00, 5601.00, 5603.00, 5604.00, 5605.90, 5607.90, 5608.00, 5903.11, 5903.21, 5903.91, 5904.20, 5907.00, 5909.00, 6202.00, 6301.00, 7216.50, 7301.20, or 7302.90 of the said Schedule.

(3) Rubber solution or vulcanizing solution; powered cycles and powered cycle-rickshaws; side cars of motor cycles (including scooters); evaporative type of coolers and parts of such coolers and flat rolled products of iron or steel clad.

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

(i) all goods falling under Chapter 9, 24, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 72, 73 or 74;

(ii) all goods falling under Heading No. 21.06, 25.04, 33.04, 33.05, 36.05, 37.01, 37.02, 37.05, 37.06, 40.05, 40.11, 40.13, 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 No. 2101.10, 2101.20, 2829.10, 3307.10, 3307.20, 3307.30, 3307.90, 3703.10, 4006.10 4008.21 or 9605.10;

(iv) sandalwood oil; strips or plastics intended for weaving of fabrics or sacks; polyurethane foam and articles of polyurethane foam; rods (including wire rods) of aluminium; and refrigerating and air-con­ditioning appliances and machinery and parts and accessories thereof falling under Chapter 84, 85 or 90.

5. This notification shall come into force on the 1st day of April, 1993.