Effective rates of duty on matches manufactured by cottage and tiny units which are members of co-operative society or recognised by KVIC/KVIB - 17/93 - Central Excise - Tariff

Effective rates of duty on matches manufactured by cottage and tiny units which are members of co-operative society or recognised by KVIC/KVIB

Notification No. 17/93-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), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts matches, falling under heading No. 36.05 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), in or in relation to the manufacture of which no process is ordinarily carried on with the aid of power, in respect of the first clearances for home consumption from a factory not exceeding 120 million matches cleared during a financial year, from so much of the duty of excise leviable thereon as is in excess of Re. 0.50 per hundred boxes of 50 matches each or Rs. 3.00 per hundred boxes of 300 matches each, as the case may be, subject to the condition that clearances from the said factory during such financial year does not exceed 150 million matches and also subject to the following other conditions, namely :-

(i) the total production of matches in a calendar month during the aforesaid period by the said factory does not exceed 15 million matches;

(ii) the total clearances, if any, of matches for home consumption from the said factory during the preceding financial year, did not exceed 150 million matches:

Provided that —

(a) the amount of exemption shall be increased by thirty-five paise per hundred boxes of 50 matches if bamboo is used for the splints or for both splints and veneers;

(b) if the splints of such matches are made of bamboo and the matches are packed in boxes of 40 matches, the rate of duty shall be four-fifths of the rate applicable to matches of identical description produced in the same factory but packed in boxes of 50 matches and if such packing in boxes of 50 matches is not done, it shall be four-fifths of the notionally determined rate for matches packed in boxes of 50 matches :

Provided further that the exemption contained in this notification shall be applicable only to a manufacturer which is a member of a co-operative society registered under any law relating to co-operative societies for the time being in force or a manufacturer recognised by the Khadi and Village In­dustries Commission or a State Khadi and Village Industries Board :

Provided also that the exemption contained in this notification shall not apply to the said matches where a manufacturer uses any other manufacturer's label which is approved by the proper officer for matches packed in boxes attracting a higher rate of duty than the rate of duty specified in this notification.

Explanation. — For the purposes of this notification, —

(1) no process other than the mechanical process employed for -

(a) filling of boxes with matches;

(b) dipping of splints in the composition for match heads;

(c) frame filling;

(d) affixing of Central Excise Stamps;

(e) packaging;

(f) the process of giving -

(i) the cardboard flats or strips the configuration of a match box including the outer slide or the inner slide, or

(ii) the veneer flats or strips, the configuration of a match box including the outer slide or the inner slide with the use of match paper;

(g) pasting of labels on match boxes or veneers or cardboards, shall be deemed to be a process ordinarily carried on with the aid of power;

(2) any other manufacturer referred to in the third proviso to the opening paragraph shall mean a manufacturer in respect of whom any one or more of the following conditions relating to clearances of matches for home consumption from, or production of matches by a factory, or the process of manufacture apply, namely :-

(i) such clearances exceed 150 million matches during the financial year;

(ii) such clearances during the preceding financial year had exceeded 150 million matches;

(iii) such production of matches in a calendar month during the financial year exceeds 15 million matches;

(iv) any process mentioned in clause (1) above is ordinarily carried on with the aid of power;

(3) for computing total number of matches produced or cleared during a calendar month or in a financial year, as the case may be, the production or clearances, if any, from a factory by a manufacturer availing the concessional rate of duty under the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 22/82-Central Excises, dated the 23rd February, 1982 shall also be taken into account.