Central Excise Rules - Fourteenth Amendment of 1998 - 43/98 - Central Excise - Non Tariff

Central Excise Rules - Fourteenth Amendment of 1998 Notification No. 43/98-C.E. (N.T.) Dated 10-12-1998 In exercise of the powers conferred by sub-section (3) of section 3A read with section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following rules further to amend the Central Excise Rules, 1944, namely :- 1. (1) These rules may be called the Central Excise (Fourteenth Amendment) Rules, 1998. (2) They shall come into force on the 16th day of December, 1998. 2. In the Central Excise Rules, 1944 after rule 96ZP the following shall be inserted namely : - "E. XIA. - Processed Textile Fabrics 96ZQ. Procedure to be followed by the independent processor of textile fabrics. - (1) An independent processor of textile fabrics falling under heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07, 55.11, 55.12, 55.13 and 55.14 of the Schedule to Central Excise Tariff Act, 1985 (5 of 1986), shall debit an amount of duty of Rs. 1.5 lakhs per chamber per month or Rs. 2 lakhs per chamber per month, as the case may be, on the annual capacity of production as determined under the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998. (2) The amount of duty payable under sub-rule (1) shall be debited by the independent processor in the account current maintained by him sub-rule (1) of rule 173G of the Central Excise Rules, 1944. (3) The amount of duty payable under sub-rule (1) shall be paid, in advance, by the 5th of each calendar month : Provided that the amount of duty payable for the period from 16th December, 1998 to 31st December, 1998 shall be deposited on or before the 31st day of December, 1998. (4) The independent processor shall continue to maintain records, and file returns, pertaining to production, clearance, manufacturing, storage, delivery or disposal of goods, including the materials received for or consumed in, the manufacture of excisable goods or other goods, the goods and materials in stock with him and the duty paid by him, as prescribed under the Central Excise Rules, 1944 and the notifications issued thereunder. (5) If an independent processor fails to pay the amount of duty by the date specified in sub-rule (3), he shall be liable to, - (i) pay the outstanding amount to duty along with interest at the rate of thirty-six per cent. per annum calculated for the outstanding period on the outstanding amount; and (ii) a penalty equal to an amount of duty outstanding from him at the end of such month or rupees five thousand, whichever is greater. (6) If an independent processor removes the processed textile fabrics referred to in sub-rule (1) without complying with the requirements of that sub-rule or sub-rule (2) or sub-rule (3), then all such goods shall be liable to confiscation and the independent processor shall be liable to a penalty equal to an amount not exceeding three times the value of such goods, or rupees five thousand, whichever is greater. (7) Where an independent processor does not produce or manufacture the processed fabrics specified in sub-rule (1) during any continuous period of not less than seven days and wishes to claim abatement under sub-section (3) of section 3A of the Central Excise Act, 1944 (1 of 1944), the abatement will be allowed by an order passed by the Commissioner of Central Excise of such amount as may be specified in such order, subject to the fulfilment of the following conditions, namely:- (a) abatement shall only be applicable on the complete closure of the hot-air stenter containing the chambers and not in case of closure of any one or more chambers contained in such stenter; (b) the independent processor shall inform, in writing, about such closure to the Assistant Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, at least three days prior to the date of such closure, giving the following details, namely :- (i) the name of the manufacturer of the stenter; (ii) the date of purchase of the stenter; (iii) the number of chambers as determined under the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998; (iv) the serial number or identification number of the stenter; (v) reason for closure of the stenter; and (vi) approximate number of days for which the stenter shall remain close; (vii) date and time from which the closure is intended; (c) the stenter shall be sealed in such manner as may be prescribed by the Commissioner of Central Excise; and (d) the independent processor, when he intends to start the production again, shall intimate in writing about the date of starting of production to the Assistant Commissioner of Central Excise, with a copy to the Superintendent of Central Excise, at least three days prior to the date of commencement of production, with a declaration that his stenter remained closed for a continuous period starting from..........hours on.......... (date) to.......... hours on........... (date) and get the seal opened in such manner as may be prescribed by the Commissioner of Central Excise before recommencing the production. Explanation I. - For the purposes of this notification, an "independent processor" means a manufacturer who is engaged exclusively in the processing of fabrics with the aid of power and who also has the facility in his factory (including plant and equipment) for carrying out heat-setting with the aid of power or steam in a hot-air stenter and who has no proprietory interest in any factory engaged in the spinning of yarn or weaving of fabrics.".