Amendments to Notification No. 1/93-C.E. - S.S.I. exemption - 59/94 - Central Excise - Tariff

Amendments to Notification No. 1/93-C.E. - S.S.I. exemption

Notification No. 59/94-C.E.

Dated 1-3-1994

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 1/93-Central Excises, dated the 28th February, 1993 namely :-

In the said notification,-

(a) for the "Annexure" the following "Annexure" shall be substituted, namely, -

"ANNEXURE

(1) All goods falling under heading No. 56.02, 74.01, 74.02, 74.03, 74.04, 74.08, 74.09, 74.10, 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. 2106.19, 2106.90, 2404.49, 5102.90, 5105.00, 5108.00, 5301.10, 5303.10, 5304.00, 5308.00, 5406.11, 5406.12, 5601.00, 5603.00, 5604.00, 5605.90, 5607.90, 5608.00, 5901.10, 5903.11, 5903.21, 5903.91, 5904.20, 5907.00, 5908.00, 5909.00, 6202.00, 6301.00 or 7407.12 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.

(4) 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, 62, or 74;

(ii) all goods falling under heading No. 25.04, 33.04, 33.05, 36.05, 37.01, 37.02, 37.05, 37.06, 40.05, 40.11, 40.13, 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, 91.02 or 96.13;

(iii) all goods falling under sub-heading No. 2101.10, 2101.20, 2106.11, 2829.10, 3307.10, 3307.20, 3307.30, 3307.90, 3703.10, 4006.10, 4008.21 or 9605.10;

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

(b) in the opening paragraph,-

(i) for the portion beginning with the words, brackets and figure "by a manufacturer from,- (1) a factory, which is registered" and ending with the words and figures "at the rate of 10 per cent ad valorem" the following shall be substituted, namely,-

"by a manufacturer, -

(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 the inputs or on capital goods or both used in or for the manufacture of the specified goods cleared for home consumption under rule 57A or rule 57Q or under the both rules 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) Clause (2) shall be omitted.

(c) for the paragraphs 2, 3 and 4, the following paragraphs shall be substituted, namely:-

"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,

under sub-clauses (a), (b) and (c) of the opening paragraph shall not exceed rupees thirty lakhs, twenty lakhs and twenty five lakhs respectively.

3. Nothing contained in this notification shall apply,-

(a) if the aggregate value of clearances of all excisable goods for home consumption, -

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

(ii) from any factory, by one or more manufacturers,

had exceeded rupees two hundred lakhs in the preceding financial year; and

(b) to a factory registered with Directorate General of Technical Development under the provisions of the Industries (Development and Regulation) Act, 1951 (65 of 1951).

4. The exemption contained in this notification shall not apply to the specified goods, bearing a brand name or trade name (registered or not) of another person:

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 bearing 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, National Small Industries Corporation or the State Small Industries Development Corporation."

(d) after paragraph 4, the following paragraph shall be inserted namely :-

"Notwithstanding the exemption contained in paragraph 1 of this notification, a manufacturer shall have an option for not availing of the benefit of the exemption contained in said paragraph and to pay duty of excise at the rate applicable to the specified goods but for the exemption contained in the said paragraph 1, subject to the condition that such manufacturer shall pay duty at the rate applicable but for aforesaid exemption on all subsequent clearances of specified goods made after availing such option, in a financial year in which such date of option falls.".

(e) for "Explanation III", the following Explanation shall be substituted, namely,-

"Explanation III.- For the purpose of computing the aggregate value of clearances under paragraph 1, 2, or 3, the clearances of any specified goods, bearing a brand name or trade name (registered or not) of another person, which are not eligible for grant of exemption in terms of provisions of paragraph 4 of this notification, shall not be taken into account."

(f) in Explanation IX, for the words "such as symbol monogram, label", the words "such as code number, design number, drawing number, symbol, monogram, label" shall be substituted.

(g) for Explanation X, the following explanation shall be substituted, namely,-

"Explanation X. - For the purpose of this notification, where the specified goods manufactured by a manufacturer, bear 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, be deemed to have been manufactured by such other manufacturer or trader."

(h) in the Annexure, in S. No. (4), in item (ii), the entry "40.11,40.13" shall be omitted.

(i) the amendments in paragraphs (b) to (h) of this notification shall come into force on the 1st day of April, 1994.