Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 notified - 42/98 - Central Excise - Non Tariff

Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 notified Notification No. 42/98-C.E. (N.T.) Dated 10-12-1998 In exercise of the powersÿconferred by sub-section (2) of section 3A of the Central Excise Act, 1944 (1 of 1944), the Central Government, hereby makes the following rules to provide for determination of the annual capacity of production of certain goods notified under sub-section (1) of said section 3A, namely :- (1) These rules may be called the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998. (2) They shall come into force with effect from the 16th day of December, 1998. 2. These rules shall apply to processed textile fabrics falling under heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07, 55.11, 55.12, 55.13 or 55.14 of the Schedule to Central Excise Tariff Act, 1985 (5 of 1986), for determining the annual capacity of production of an independent processor if such textile fabrics are manufactured or produced with the aid of a hot-air stenter. 3. The annual capacity of production referred to in rule 2 shall be determined in the following manner, namely :- (1) an independent processor shall declare - (i) the number of hot-air stenters installed in his factory; (ii) the name of the manufacturer of each of the hot-air stenter, its identification No. and the date of its purchase; (iii) the number and size (both the length and width in centimetres) of chambers in each of the hot-air stenters; (iv) the total value of processed fabrics referred to in rule 2, produced or manufactured in the preceding financial year; and (v) the total quantity of processed fabrics referred to in rule 2, produced or manufactured in the preceding financial year; to the Commissioner of Central Excise (hereinafter referred to as the Commissioner), with a copy to the Assistant Commissioner of Central Excise. (2) on receipt of the declaration referred to in clause (1), the Commissioner shall take necessary action to verify its correctness and ascertain the correct value of each of the parameters given in such declaration. The Commissioner may, if he so desires, consult any technical authority for this purpose. (3) the annual capacity of production of processed textile fabrics specified in rule 2 in respect of a factory of an independent processor shall be determined keeping in view the following factors, namely :- (i) the number of chambers (of a hot-air stenter), each of which having a rail length of upto 3.05 metre on each side, installed in such factory shall be construed as one chamber and any fraction exceeding such rail length of any such chamber shall be computed on a pro-rata basis; (ii) the average value of the processed textile fabrics (per sq. m.) referred to in rule 2 for such factory arrived at by dividing the total value of such processed fabrics cleared from the factory in the immediately preceding financial year by the total quantity of such processed fabrics, cleared during that financial year; (iii) for the textile fabrics produced by the new units or the closed units of such factory for which it is not possible to calculate average value under sub-clause (ii), the average value of such fabrics shall be as declared by the independent processor at the time of making the declaration, provided that the amount of duty payable on such fabrics shall be re-worked out at the end of a financial year on the basis of actual average value of the textile fabrics produced in the financial year in such factory; (iv) the average value of production per chamber per month as. - (a) in the case of fabrics of average value of upto and including Rs. 30 per square metre, Rs. 11.72 lakhs, and (b) in the case of fabrics of average value of exceeding Rs. 30 per square metre, Rs. 15.63 lakhs. (4) the Commissioner of Central Excise shall, as soon as may be, after determining the annual capacity of production on the basis of the average value of processed textile fabrics and the number of chambers (of a hot-air stenter) of the factory of the independent processor, by an order, intimate the same as also the rate of duty applicable to the independent processor : Provided that the Commissioner may determine the annual capacity of production on provisional basis pending verification of the declaration furnished by the independent processor and pass an order accordingly. Thereafter, the Commissioner may determine, the annual capacity, as soon as may be, and pass an order accordingly. 4. The capacity of production for any part of the year, or any change in the total number of chambers, shall be calculated pro-rata on the basis of annual capacity of production determined in the manner stated in rule 3. 5. In case an independent processor proposes to make any change in installed machinery or any part thereof which tends to change any of the parameters referred to in sub-rule (3) of rule 3, he shall intimate, about the proposed change, to the Commissioner of Central Excise in writing, with a copy to the Assistant Commissioner of Central Excise, one month in advance of such proposed change, and shall obtain the written approval of the Commissioner before making such change, whereafter the Commissioner of Central Excise shall determine the date from which the change in the annual capacity shall be deemed to be effective. Explanation I. - For the purposes of this notification, a float drying machine or any other equipment of a length 3.05 metres installed in or attached to a stenter for aiding the process of heat setting or drying of the fabrics shall be deemed to be one chamber of a stenter and any fraction of such length shall be computed on a pro-rata basis. Explanation II. - Unless otherwise specified in any rule made under section 3A of the Central Excise Act, 1944 (1 of 1944), for the purposes of this notification the goods shall be deemed to have been manufactured or produced with the aid of a hot-air stenter, if they are cleared from a factory where a hot-air stenter is installed, irrespective of whether it is in use or in working condition, or is otherwise. Explanation III. - 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. Explanation IV. - For the purposes of this notification, the term "value" means the value as determined under section 4 of the Central Excise Act, 1944 (1 of 1944).