Small Scale Units - New Exemption Scheme from 1-4-1997 - Notification No. 7/97-C.E. (N.T.) superseded - 16/97 - Central Excise - Tariff

Small Scale Units - New Exemption Scheme from 1-4-1997 - Notification No. 7/97-C.E. (N.T.) superseded

Notification No. 16/97-C.E.

Dated 1-4-1997

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, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 7/97-Central Excise dated the 1st March, 1997, 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 "the specified goods"), 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.

TABLE

S. No.	Clearances	Rate
(1)	(2)	(3)
1.	First clearances upto an aggregate value not exceeding rupees thirty lakhs made on or after 1st day of April in a financial year.	Nil
2.	Clearances of aggregate value not exceeding rupees twenty lakhs immediately following the clearances specified against S. No. 1 above.	Three per cent, ad valorem
3.	Clearances of aggregate value not exceeding rupees fifty lakhs immediately following the clearances specified against S.No. 2 above.	Five per cent, ad valorem

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. Such option shall be exercised before effecting the first clearance in a financial year and, if exercised, shall subject to (ii) below, be effective from the date of first clearance in a financial year and cannot be withdrawn in the same financial year under any circumstances.

(ii) For the financial year 1997-98 -

(a) in respect of units for which the date of first clearance happens to be a date on or before the 1st day of May, 1997, the option shall be exercised on or before 1st day of May, 1997 and shall be effective from the date of exercise of such option;

(b) in respect of units for which the date of first clearance happens to be a date beyond the 1st day of May, 1997, option shall be exercised on or before the date of first clearances and shall be effective from the date of first clearance;

(iii) The manufacturer does not avail of the credit of duty under rule 57A of the Central Excise Rules, 1944, paid on inputs used in the manufacture of the specified goods cleared for home consumption, the aggregate value of first clearances of which does not exceed rupees one hundred lakhs in the relevant financial year. The manufacturer also does not utilise the credit of duty under rule 57Q of the said rules, paid on capital goods, for payment of duty, if any, on the aforesaid clearances, the aggregate value of first clearances of which does not exceed rupees one hundred lakhs in the relevant financial year.

(iv) 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.

(v) 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.

(vi) 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. 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 this exemption in terms of paragraph 4 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.

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 :-

(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 appliances 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;

5. 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.

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 No. 60.01 or 60.02; shoddy yarn manufactured from used or new rags falling under heading No. 55.09 or 55.10 and unprocessed cotton terry towelling fabric falling under sub-heading No.5802.21.

(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.

(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, 91.01or 91.02;

(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.