Credit of duty when polyester filament yarn is used in the manufacture of low price fabrics under a programme approved by Textile Commissioner and Minister of Textiles - 079/88 - Central Excise - Tariff

Credit of duty when polyester filament yarn is used in the manufacture of low price fabrics under a programme approved by Textile Commissioner and Minister of Textiles

Notification No. 79/88-C.E.

Dated 1-3-1988

In exercise of the powers conferred by rule 57K of the Central Excise Rules, 1944, the Central Government hereby specifies -

(i) the inputs, namely, polyester filament yarn falling under sub-heading Nos. 5402.20 and 5403.20 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the manufacture of the final product, namely, fabrics of polyester filament yarn falling under heading No. 54.09 or 54.12 of the said Schedule; and

(ii) Rs. 43.75 per kilogram as the rate at which credit may be granted for use of the said inputs in the manufacture of the said final product;

for the purposes of Section AAA of Chapter V of the said Rules and stipulates that the grant of credit and utilisation thereof, shall, in addition to the provisions of the said section, be subject to the following conditions, namely :-

(i) the credit shall be taken only in respect of the quantity of polyester filament yarn used under a programme duly approved by the Textile Commissioner and an officer not below the rank of Joint Secretary in the Ministry of Textiles for the manufacture of low price fabrics of polyester filament yarn;

(ii) the manufacturer shall within such period as the Assistant Collector of Central Excise may specify in this behalf, produce a certificate from the Textile Commissioner to the effect that the said polyester filament yarn has been used for the aforesaid purpose;

(iii) the credit shall be taken only after the said polyester filament yarn have been actually used for weaving of the said fabrics of polyester filament yarn;

(iv) the credit taken during any calendar month shall be utilised for payment of duty on the said fabrics of polyester filament yarn only after the commencement of the succeeding month;

(v) the Form RG 23B Part I and Part II shall be maintained separately for each variety of the said fabrics of polyester filament yarn; and

(vi) the credit of polyester filament yarn used in the manufacture of each variety of the fabrics of polyester filament yarn specified in clause (i) above, shall be utilised for payment of duty leviable on that variety of fabrics of polyester filament yarn alone and no amount of the excess credit, if any, available in the credit account shall be refunded to the manufacturer adjusted against or utilised for payment of duty on any other excisable goods.

2. The credit shall also be permissible on polyester filament yarn contained in any fents, rags and chindies of the said low price fabrics of polyester filament yarn upto an aggregate quantity of such fents, rags and chindies not exceeding 8 per cent of the total clearances of such low price fabrics.

Explanation. - For the purposes of this notification, -

(a)  "low price" in respect of a variety of fabric means the maximum ex-factory price fixed for such fabric under the programme referred to in condition (i) above;

(b) "fents" means -

(i) bona fide cut-pieces of fabrics (excluding cut-pieces of towels) of length 45 centimetres or more but not exceeding 90 centimetres where the width of the fabric is one metre or more, and of length 65 centimetres or more but not exceeding 135 centimetres where the width of the fabric is less than one metre, arising during the normal course of manufacturing (including processing) or packing or drawing samples;

(ii) damaged fabrics (excluding damaged towels) of length 45 centimetres or more but not exceeding 90 centimetres where the width of the fabric is one metre or more, and of length 65 centimetres or more but not exceeding 135 centimetres where the width of the fabric is less than one metre; and

(iii)  cut-pieces of length 45 centimetres or more but not exceeding 90 centimetres where the width of the fabric is one metre or more, and of length 65 centimetres or more but not exceeding 135 centimetres where the width of the fabric is less than one metre, cut from damaged dhoties or sarees;

(c) "rags" means -

(i) bona fide cut-pieces of fabrics of length more than 23 centimetres but less than 45 centimetres where the width of the fabric is one metre or more, and of length more than 23 centimetres but less than 65 centimetres where the width of the fabric is less than one metre, arising during the normal course of manufacturing (including processing) or packing or drawing samples; and

(ii) cut-pieces of damaged or sub-standard fabrics of length more than 23 centimetres but less than 45 centimetres where the width of the fabric is one metre or more, and of length more than 23 centimetres but less than 65 centimetres where the width of the fabric is less than one metre;

(d) "chindies" means normal cut-pieces of fabrics which are 23 centimetres or less in length including remnants or cut-pieces of fabrics, damaged or otherwise deficient in standard.