Exemption to small scale unit - 216/86 - Central Excise - Tariff

Exemption to small scale unit

Notification No. 216/86-C.E.

Dated 2-4-1986

In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 175/86-Central Excises, dated the 1st March, 1986, namely :—

In the said notification,—

(i) In paragraph 1, for the clauses (a), (b) and (c) the following clauses shall be substituted, namely :—

"(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 inputs used in the manufacture of the specified goods under rule 57A of 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 and in force for the time being] as is equivalent to an amount calculated at the rate of 10% ad valorem :

(ii) in any other case from the whole of the duty of excise leviable thereon :

Provided that the aggregate value of clearances of the specified goods under sub-clause (ii) of this clause in respect of any one heading No. of the said Schedule, shall not exceed rupees fifteen lakhs;

(b) in the case of clearances (being the clearances of the specified goods of an aggregate value not exceeding rupees sixty lakhs) immediately following the said 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 equivalent to an amount calculated at the rate of 10% ad valorem :

Provided that the amount of duty of excise payable on the specified goods under sub-clause (i) of clause (a), or as the case may be, under this clause, shall not be less than an amount calculated at the rate of 5% ad valorem :

Provided further that the aggregate value of clearances of the specified goods in terms of clause (a) and clause (b) of this paragraph taken together, shall not exceed rupees seventy five lakhs.";

(ii) for paragraph 2, the following paragraph shall be substituted, namely :—

"2. The aggregate value of clearances of the specified goods from any factory by one or more manufacturers in any financial year under clause (a) and (b) of paragraph 1, shall not exceed rupees thirty lakhs and sixty lakhs respectively :

Provided that the aggregate value of clearances of the specified goods from any factory by one or more manufacturers in any financial year in terms of clause (a) and clause (b) of paragraph 1, taken together, shall not exceed rupees seventy-five lakhs.";

 (iii) in the Annexure, in Sl. No. 4, in item (i), the figure "63" shall be omitted.