Effective rate of excise duty on polyester filament yarn supplied for manufacture of low price fabrics under a programme approved by Development Commissioner for Handlooms - 078/88 - Central Excise - Tariff

Effective rate of excise duty on polyester filament yarn supplied for manufacture of low price fabrics under a programme approved by Development Commissioner for Handlooms

Notification No. 78/88-C.E.

Dated 1-3-1988

In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts 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) from so much of the duty of excise leviable thereon which is specified in the said Schedule as is in excess of the amount calculated at the rate of rupees eight and paise eighty per kilogram, subject to the following conditions, namely :-

(i) the manufacturer produces evidence to the Assistant Collector of Central Excise to the effect that the said polyester filament yarn is intended for use under a programme duly approved by the Development Commissioner for Handlooms for the manufacture of low price fabrics;

(ii) the manufacturer shall, within such period as the Assistant Collector of Central Excise may specify in this behalf, produces certificate from the Director in charge of Textiles and Handlooms in the Government of a State to the effect that the said polyester filament yarn has been used for the aforesaid purpose :

Provided that the exemption contained in this notification shall also apply to the said polyester filament yarn contained in any fents, rags and chindies of the said low-price fabrics :

Provided further that the exemption in respect of the said polyester filament yarn contained in such fents, rags and chindies shall apply only to an aggregate quantity of such fents, rags and chindies not exceeding eight per cent of the total quantity of 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.