Amendment to Notification No. 177/86-C.E. - Credit of S.E.D. on inputs - 10/89 - Central Excise - Non Tariff

Amendment to Notification No. 177/86-C.E. - Credit of S.E.D. on inputs

Notification No. 10/89-C.E. (N.T.)

Dated 1-3-1989

In exercise of the powers conferred by rule 57A of the Central Excise Rules, l944, the Central Government, hereby makes the following, further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 177/86-Central Excises, dated the 1st March, 1986, namely :-

In the said notification,-

(a) in the opening paragraph, in clause (ii), the word "and" occuring at the end shall be omitted and after clause (ii), the following clause shall be inserted, namely :-

"(ii a) the special duty of excise under sub-clause (1) of clause 37 of the Finance Bill, 1989, which clause has, by virtue of the declaration made in the said Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law; and";

(b) in clause (2) of the first proviso, for the words, brackets and figures "the special duty of excise leviable under the Finance Act, 1988 (26 of 1988)", the words, brackets and figures "the special duty of excise leviable under sub-clause (1) of clause 37 of the Finance Bill, 1989, which clause has, by virtue of the declaration made in the said Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law" shall be substituted;

(c)  in clause (3) of the second proviso, for the words and figures "Rs. 365 per tonne", the words and figures "Rs. 500 per tonne" shall be substituted;

(d) after the third proviso, the following proviso shall be inserted, namely :-

"Provided also that the credit of the specified duties paid on the goods falling under heading No. 39.04 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), when used in the manufacture of goods falling under heading No. 59.03 of the said Schedule (hereinafter referred to as "final product") shall be allowed subject to the following conditions, namely :-

(i)  a separate RG-23A account under rule 57-G of the said rules shall be maintained in respect of goods falling under heading No. 39.04 so used; and

(ii) the amount of the said credit utilised for payment of duty on clearances of the final product shall not exceed the amount calculated at the rate of Rs. 3.50 per square metre of final product cleared and the excess credit if any available in the said RG-23A account shall not be refunded to the manufacturer or adjusted against or utilised for payment of duty on any other excisable goods under any circumstances whatsoever.".