Credit of duty paid on inputs and outputs on processed fabrics of Chapters 52, 54, 55, processed and unprocessed fabrics of Heading Nos. 58.01, 58.06, 60.01 or 60.02 - 11/96 - Central Excise - Non Tariff

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Credit of duty paid on inputs and outputs on processed fabrics of Chapters 52, 54, 55, processed and unprocessed fabrics of Heading Nos. 58.01, 58.06, 60.01 or 60.02

Notification No. 11/96-C.E. (N.T.)

Dated, 23-7-1996

In exercise of the powers conferred by sub-rule (2) of rule 57A of the Central Excise Rules, 1944, the Central Government hereby declares the following inputs and the final products, namely :-

Inputs

Final products

(i) goods falling within heading No. 51.05

(ii) goods falling within heading No. 55.01, 55.02, 55.03, 55.04, 55.05, 55.06 or 55.07

(iii) goods falling within heading No. 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02, 54.03, 54.04, 54.05, 55.09, 55.10, 56.04, 56.05 or 56.06

Processed fabrics falling within Chapter 52 (except sub-heading Nos. 5207.10, 5208.10 and 5209.10) or Chapter 54 (except sub-heading Nos. 5406.10 and 5407.10) or Chapter 55 (except sub-heading Nos. 5511.10, 5512.10, 5513.10 and 5514.10), or fabrics of cotton or man made fibres, whether or not processed, falling within heading No. 58.01, 58.02, 58.06 (except sub-heading No. 5806.20), 60.01 or 60.02 (except sub-heading No. 6002.10)

The Central Government further declares that -

(i) the duty of excise under the Central Excises and Salt Act, 1944 (1 of 1944);

(ii) the additional duty under section 3 of the Customs Tariff Act, 1975 (51 of 1975); or

(iii) the additional duty of excise under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978),

(hereinafter referred to as `declared duty') shall be deemed to have been paid on the inputs declared herein and the same shall be equivalent to the amount calculated at the rate of 50% of the duty of excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944), read with any notification for the time being in force, on the final products declared herein, and credit of the declared duty so deemed to have been paid shall be allowed to the manufacturer of the final products, without production of documents evidencing payment of duty on the said inputs, at the time of clearance of the said final products :

Provided that the credit of declared duty allowed in respect of the said inputs shall be utilised only towards payment of duty of excise leviable under the said Central Excises and Salt Act on the said final products :

Provided further that -

(1) in respect of a composite mill, subject to clause (2) below, the provisions of this notification shall apply only to such processed fabrics which have been manufactured from unprocessed fabrics not woven in the same composite mill;

(2) in respect of processed fabrics, manufactured by a composite mill, which are lying in stock as on 1st day of August, 1996, the provisions of this notification shall apply only if the appropriate duty of excise leviable under the said Central Excises and Salt Act on declared inputs used in the manufacture of said processed fabrics, have been paid;

(3) the provisions of this notification shall not apply where processed fabric itself is used as an input for further processing;

(4) in respect of unprocessed fabrics, the provisions of this notification shall apply to all manufacturers of fabrics other than a composite mill.

2. This notification shall come into effect on and from 1st day of August, 1996.

Explanation. -For the purposes of this notification, "composite mill" means a manufacturer, who is engaged in the processing of fabrics with the aid of power alongwith spinning of yarn and weaving or knitting or crocheting of fabrics.