Exemption to refrigerators and air conditioners and parts thereof if produced by small scale units - 75/87 - Central Excise - Tariff

Exemption to refrigerators and air conditioners and parts thereof if produced by small scale units

Notification No. 75/87-C.E.

Dated 1-3-1987

In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, and in supersession of the notifications of the Government of India in the Ministry of Finance (Department of Revenue) Nos. 64/83-Central Excises and 65/83-Central Excises, both dated the 1st March, 1983, the Central Government hereby exempts refrigerating and air-conditioning appliances and machinery, all sorts, and parts thereof, falling within Chapter Nos. 84, 85 or 90 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), (herein­after referred to as the "said goods"), and cleared for home consumption on or after the 1st day of April in any financial year, by a manufacturer from one or more factories, -

(a) in the case of first clearances of the said goods upto an aggre­gate value not exceeding rupees five lakhs, from the whole of the duty of excise leviable thereon which is specified in the said Schedule;

(b) in the case of clearances of the said goods of an aggregate value not exceeding rupees ten lakhs immediately following the first clearances of the value specified in clause (a), 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] as is in excess of fifty per cent of such duty :-

Provided that the aggregate value of clearances of the said goods from any factory by one or more manufacturers in any financial year under clause (a) and (b) of this paragraph shall not exceed rupees five lakhs and ten lakhs respectively.

2. Nothing contained in this notification shall apply if the aggregate value of clearances of all excisable goods for home consumption, -

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

(b) from any factory, by one or more manufacturers, had exceeded rupees forty lakhs in the preceding financial year.

3. Where a manufacturer has not cleared the said goods in the preceding financial year, or has cleared the said goods for the first time on or after the 1st day of August in the preceding financial year, the exemption contained in this notification shall apply to such manufacturer,-

(a) if he files a declaration with the Assistant Collector of Central Excise that the aggregate value of clearances of all excisable goods by him, for home consumption, from one or more factories, during the financial year is not likely to exceed Rs. 40 lakhs, and

(b) if the aggregate value of clearances of all excisable goods by him, for home consumption from one or more factories, during the financial year does not exceed Rs. 40 lakhs.

4. Where the said goods have not been cleared from any factory in the preceding financial year, or have been cleared for the first time on or after the 1st day of August in the preceding financial year, the exemption contained in this notification shall not be applicable if the aggre­gate value of clearances of all excisable goods from such factory by one or more manufacturers, for home consumption, during the financial year, exceeds Rs. 40 lakhs.

Explanation I. - For the purposes of this notification, the expression "value" means the value as determined in accordance with the provision of section 4 of the Central Excises and Salt Act, 1944 (1 of 1944).

Explanation II. - For the purposes of computing the aggregate value of clearances under this notification, the clearances of any excisable goods, which are exempted from the whole of the duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon the value or quantity of clearances made in a financial year) issued under sub-rule (1) of rule 8 of the Central Excise Rules, 1944, shall not be taken into account.