Exempts Clearances for home consumption - 009/2000 - Central Excise - Tariff

 Exempts Clearances for home consumption

This Notification has been superseded vide Notification No. 9/2001 dated 1/3/2001

NOTIFICATION NO. 09/2000-CE

Dated 01/03/2000

G.S.R. (E),- In exercise of the powers conferred by sub-section (1) of Section 5A 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 exempts clearances, specified in column (2) of the Table below (hereinafter referred to as the said Table) for home consumption, of excisable goods of the description specified in the Annexure appended to this notification (hereinafter referred to as "the specified goods"), from so much of the duty of excise specified thereon in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) or the Second Schedule to the said Central Excise Tariff Act, as the case may be, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table

TABLE

Sl No	Value of clearances	Rate of duty
(1)	(2)	(3)
1	First clearances upto an aggregate value not exceeding 1[one hundred lakh rupees] made on or after the 1st day of April in any financial year 2[Provided that if any clearances for home consumption have been made before the 1 st day of September 2000, whether at nil rate or otherwise, the aggregate value of such clearances shall be taken into account for computing the limit of one hundred lakh rupees.] 7[Provided further that in the financial year 2000-2001, in the period beginning with the 1st day of March, 2001 and ending on the 31st day of March, 2001, both days inclusive, the aggregate value of clearances of woven pile fabrics or chenille yarn that may be cleared at the concessional rate of sixty percent of normal duty, shall be determined in accordance with the transitional provisions contained in paragraph 11[4A] and the aggregate value of clearances of cartons, boxes, containers and cases of corrugated paper or paperboard; corrugated paper or paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes, containers and cases of corrugated paper or paperboard, that can be cleared at the concessional rate of sixty per cent of normal duty, shall be determined in accordance with the transitional provisions contained in paragraph 4B.; ] "4B the following transitional provisions shall apply for the period from 1st March, 2001 to 31st March, 2001, both days inclusive, in respect of the manufacturers of cartons, boxes, containers and cases of corrugated paper or paperboard; corrugated paper or paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes, containers and cases of corrugated paper or paperboard, against Sl. No. 1, in column(2):- (1) notwithstanding anything contained in paragraph 1, the aggregate value of clearances of cartons, boxes, containers and cases of corrugated paper or paperboard; corrugated paper or paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes containers and case of corrugated paper or paperboard, or any one or more such goods against Sl No. 1, in column(2), that shall be allowed to be cleared at the concessional rate of sixty per cent of normal duty, shall be determined in accordance with clauses (2) and (3) below. (2) a manufacture is only entitled to make clearances for home consumption, of an aggregate value not exceeding rupees ten lakhs, at the concesssional rate of sixty per cent of normal duty. (3) for the purposes of these transitional provisions, the aggregate value of clearances shall mean the aggregate value of clearances of cartons, boxes, containers and case of corrugated paper or paperboard; corrugated paper of paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes, containers and case of corrugated paper or paperboard, or any one or more of such goods, against Sl. No. 1, in column(2), determined in accordance with the provisions of paragraph 3 above".	Sixty per cent normal rate of duty
2	3[Omitted]
3.	All clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods.	Nil

⁴[ILLUSTRATIONS REGARDING SL. NO.1 OF THE TABLE (In these illustration, "clearances" means clearances for home consumption.)

Illustration 1. As on the 31st day of August, 2000, a manufacturer made clearances of an aggregate value of sixty lakh rupees, comprising of fifty 1akh rupees at the concessional rate of sixty per cent of normal duty and ten lakh rupees at the concessional rate of eighty per cent of normal duty. He shall be entitled to additional clearances upto an aggregate value of forty lakh rupees, at the concessional rate of sixty per cent of normal duty, during the remaining part of the financial year 2000-2001.

Illustration 2. A manufacturer made clearances of an aggregate value of clearances of thirty lakh rupees at nil rate during the financial year 2000-2001 under Ntf. No. 8/2000-CE dated the 1 st March 2000. Thereafter he opted for exemption under this notification. As on the 31st day of August, 2000, the manufacturer made clearances of an aggregate value of sixty lakh rupees, comprising of thirty lakh rupees at nil rate of duty, twenty lakh rupees at the concessional rate of sixty per cent of nbrmal duty and ten lakh rupees at the concessional rate of eighty per cent of normal duty. He shall be entitled under this notification to additional clearances upto an aggregate value of forty lakh rupees, at the concessional rate of sixty per cent of normal duty, during the remaining part of the financial year 2000-2001.

Illustration 3. As on the 31st day of August, 2000, a manufacturer has made clearances of an aggregate value of one hundred and ten lakh rupees, comprising of fifty lakh rupees at ] the concessional rate of sixty per cent of normal duty, fifty lakh rupees at the concessional rate of eighty per cent of the normal duty and ten lakh rupees at the normal rate of duty. He shall not be entitled to any exemption under this notification during the remainin art of the financial ear 2000-2001.]

2. The exemption contained in this notification shall apply subject to the following conditions, namely :-

(i) A manufacturer who intends to avail the exemption under this notification shall exercise his option in writing for availing the exemption under this notification before effecting the first clearances and such option shall be effective from the date of excerise of the option and shall not be withdrawn during the remaining part of the financial year

(ii) While exercising the option under condition (i), the manufacturer shall inform in writing to the Jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise with a copy to the Superintendent of Central Excise giving the following particulars, namely:-

(a) name and address of the manufacturer;

(b) location / locations of factory / factories;

(c) description of specified goods produced;

(d) date from which option under this notification has been exercised;

(e) aggregate value of clearances of specified goods (excluding the value of clearances referred to in paragraph 3 of this notification) till the date of exercising the option;

(iii) where a manufacturer opts for availing the exemption under this notification in terms of condition (i) above, the clearances of specified goods already made during the financial year, prior to the exercise of such option, shall be taken into account for computing the aggregate value of clearances, as specified in the said table.

Illustration I: ⁵[Omitted]

Illustration II: ⁵[Omitted]

Illustration III: ⁵[Omitted]

Illustration IV: ⁵[Omitted]

(iv) Where a manufacturer clears the specified goods from one or more factories, the exemption in his case shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table and not separately for each factory.

(v) Where the specified goods are cleared by one or more manufacturers from a factory, the exemption shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table and not separately for each manufacturer.

(vi) The aggregate value of clearances of all excisable goods for home consumption by a manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed rupees three hundred lakhs in the preceding financial year:

3. For the purpose of determining the aggregate value of clearances for home consumption, the following clearances shall not be taken into account, namely:-

(a) clearances, which are exempt from the whole of the excise duty leviable thereon (other than an exemption based on quantity or value of clearances) under any other notification or on which no excise duty is payable for any other reason;

(b) clearances bearing the brand name or trade name of another person, which are ineligible for the grant of exemption under this notification in terms of paragraph 4;

(c) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods;

(d) clearances of strips of plastics used within the factory of production for weaving of fabrics or for manufacture of sacks or bags made of polymers of ethylene or propylene.

¹³[(e) clearances of hot re rolled products of non alloy steel falling under sub-heading Nos. 7211.11, 7211.19, 7211.30, 7211.52, 7211.59. 7211.60, 7211.92, 7211.99, 7213.90, 7214.90, 7215.90, 7216. 10 and 7216.90, lying in stock on 3lst March 2000, on which duty of excise has been paid under section 3A of the Central Excise Act, 1944";

(f) clearances of ingots and billets of non-alloy steel falling under sub-heading Nos. 7206.90 and 7207.90, lying in stock on 31st March 2000, on which duty of excise has been paid under section 3A of the Central Excise Act, 1944.]

4. The exemption contained in this notification shall not apply to the specified goods bearing a brand name or trade name, whether registered or not, of another person, except in the following cases :-

(a) where specified goods, being in the nature of components or parts of any machinery or equipment or appliances, are cleared for use as original equipment in the manufacture of the said machinery or equipment or appliances by following the procedure laid down in Chapter X of the Central Excise Rules, 1944.

Provided that manufacturers, whose aggregate value of clearances for home consumption of such specified goods for use as original equipment does not exceed rupees fifty lakhs in the financial year 1999-2000 as calculated in the manner specified in paragraph 1 may submit a declaration regarding such use instead of following the procedure laid down in Chapter X of the said rules;

(b) where the goods bear a brand name or trade name of-

(i) the Khadi and Village Industries Commission; or

(ii) a State Khadi and Village Industry Board; or

(iii) the National Small Industries Corporation; or

(iv) a State Small Industries Development Corporation; or

(v) a State Small Industries Corporation;

(c) where the specified goods are manufactured in a factory located in a rural area

⁸[4A. The following transitional provisions shall apply for the period from 1st March, 2001 to 31st March 2001, both days inclusive, in respect of manufacturers of woven pile fabrics and chenille yarn :-

1. notwithstanding anything contained in paragraph 1, the aggregate value of clearances of woven pile fabrics or chenille yarn or both, that shall be allowed to be cleared at nil rate of duty shall be determined in accordance with clauses 2) to 5) below

2. a manufacturer whose aggregate value of clearances for home consumption, as on 28th February, 2001 does not exceed rupees ninety lakhs, is only entitled to make clearances for home consumption, of an aggregate value not exceeding ten lakhs, at the concessional rate of sixty percent of normal duty;

3. a manufacturer whose aggregate value of clearances for home consumption as on 28th February, 2001 exceeds rupees ninety lakhs, is only entitled to make clearances for home consumption, at the concessional rate of sixty percent of normal duty of an aggregate value, equal to the difference between hundred lakhs and the aggregate value of clearances for home consumption as on the 28th of February,2001;

4. a manufacturer whose aggregate value of clearances for home consumption as on 28th February, 2001 exceeds rupees one hundred lakhs,is not entitled to make any clearances for home consumption at the concessional rate of sixty percent of normal duty;

5. for the purposes of these transitional provisions, the aggregate value of clearances shall mean the aggregate value of clearances of woven pile fabrics or chenille yarn, as the case may be, determined in accordance with the provisions of paragraph 3

Illustration 1: As on 28th February, 2001, a manufacturer of woven pile fabrics or chenille yarn has made clearances for home consumption of an aggregate value of rupees eighty five lakhs. He is entitled to clearances of an aggregate value of rupees ten lakhs at the concessional rate of sixty percent of normal duty.

Illustration 2: As on 28th February, 2001, a manufacturer of woven pile fabrics or chenille yarn has made clearances for home consumption of an aggregate value of rupees ninety five lakhs. He is entitled , to clearances of an aggregate value of rupees five lakhs at the concessional rate of sixty percent of normal duty.]

¹²[4B the following transitional provisions shall apply for the period from 1st March, 2001 to 31st March, 2001, both days inclusive, in respect of the manufacturers of cartons, boxes, containers and cases of corrugated paper or paperboard; corrugated paper or paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes, containers and cases of corrugated paper or paperboard, against Sl. No. 1, in column(2):-

(1) notwithstanding anything contained in paragraph 1, the aggregate value of clearances of cartons, boxes, containers and cases of corrugated paper or paperboard; corrugated paper or paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes containers and case of corrugated paper or paperboard, or any one or more such goods against Sl No. 1, in column(2), that shall be allowed to be cleared at the concessional rate of sixty per cent of normal duty, shall be determined in accordance with clauses (2) and (3) below.

(2) a manufacture is only entitled to make clearances for home consumption, of an aggregate value not exceeding rupees ten lakhs, at the concesssional rate of sixty per cent of normal duty.

(3) for the purposes of these transitional provisions, the aggregate value of clearances shall mean the aggregate value of clearances of cartons, boxes, containers and case of corrugated paper or paperboard; corrugated paper of paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes, containers and case of corrugated paper or paperboard, or any one or more of such goods, against Sl. No. 1, in column(2), determined in accordance with the provisions of paragraph 3 above.]

5. This notification shall come into force on the 1st day of April,2000.

Explanation.- For the purposes of this notification,-

(A) "brand name" or "trade name" means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person;

(B) where specified goods manufactured by a manufacturer bear a brand name or trade name, whether registered or not, of another manufacturer or trader, such specified goods shall not, merely by reason of that fact, be deemed to have been manufactured by such other manufacturer or trader;

(C) "value" means

(i) in respect of specified goods which have been notified under Section 4A of the Central Excise Act 1944(1 of 1944), as determined in accordance with the provisions of that section, and

(ii) in respect of specified goods other than those referred to in sub clause (i), the value as determined in accordance with the provisions of section 4 of the Central Excise Act, 1944 (1 of 1944), or the tariff value fixed under section 3 of the said Act;

(D) in the determination of the value of clearances of Chinaware or Porcelainware or both, where a manufacturer gets Chinaware or Porcelainware or both fired in a kiln belonging to or maintained by a Pottery Development Centre run by the Central Government or a State Government or by the Khadi and Village Industries Commission, the value of the Chinaware or Porcelainware or both, belonging to the said manufacturer and fired in such kiln shall be taken into account;

(E) where the specified goods are manufactured in a factory belonging to or maintained by the Central Government or by a State Government, or by a State Industries Corporation, or by a State Small Industries Corporation or by the Khadi and Village Industries Commission, then the value of excisable goods cleared from such factory alone shall be taken into account;

(F) "normal rate of duty" means

(i) in the case of goods leviable to duty under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) at the rate specified for such goods in that Schedule read with any relevant notification (other than this notification or a notification in which exemption is based on the value or quantity of clearance) issued under sub-section (1) of Section 5A of the said Central Excise Act,1944 (1 of 1944).

(ii) in the case of goods leviable to duty under the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) at the rate specified for such goods in that Schedule read with any relevant notification (other than this notification or a notification in which exemption is based on the value or quantity of clearance) issued under sub-section (1) of Section 5A of the said Central Excise Act,1944 (1 of 1944).

(G) "clearances for home consumption", shall also include clearances for export to Bhutan and Nepal.

(H) "rural area" means the area comprised in a village as defined in the land revenue records , excluding-

(i) the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee, or

(ii) any area that may be notified as an urban area by the Central Government or a State Government.

(refund of the difference between any duty paid on clearance made before the 1st day of September, 2000 and the concessional rate of sixty per cent of normal duty on the ground that such clearances are included in the aggregate value of clearances under S.No. 1 of the TABLE, shall not be admissible.)

⁶[(I) refund of the difference between any duty paid on clearance made before the 1st day of September, 2000 and the concessional rate of sixty per cent of normal duty on the ground that such clearances are included in the aggregate value of clearances under S.No. 1 of the TABLE, shall not be admissible.]

⁹[(J) "retail sale price" means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight , transport charges, commission payable to dealers and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and the price is the sole consideration for such sale.]

ANNEXURE

1. All goods specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the following, namely:-

(i) all goods which are chargeable to nil rate of duty or are exempt from the whole of the duty of excise leviable thereon;

(ii) all goods falling under heading No. 09.02;

(iii) all goods falling under heading No. 21.06 and sub-heading Nos. 2101.10 and 2101.20;

(iv) all goods falling under Chapter 24 of the said Schedule (other than unbranded chewing tobacco and preparations containing chewing tobacco, falling under heading No. 24.04 of the said Schedule);

(v) all goods falling under heading No. 25.04;

(vi) sandalwood oil;

(vii) all goods falling under heading No. 36.05;

(viii) all goods falling under heading Nos. 37.01, 37.02, and sub-heading No. 3703.10;

(ix) strips of plastics intended for weaving of fabrics or sacks, polyurethane foam and articles of polyurethane foam; falling under Chapter 39;

(x) all goods falling under Chapter 51 of the said Schedule other than those falling under sub-heading Nos. 5105.30 and 5105.40 and heading Nos. 51.06, 51.07, 51.08, 51.09, 51.10 and 51.11 ( except woven fabrics of wool falling under heading Nos. 51.10 or 51.11) and under 51.12;

¹⁰[(xi) all goods falling under Chapter 52 of the said Schedule other than goods falling under heading No. 52.04.]

(xii) all goods falling under Chapter 53 of the said Schedule except goods falling under heading Nos. 53.01, 53.02, 53.04, 53.05, 53.08 (other than goods falling under sub-heading No. 5308.14 ), 53.11 ( other than woven fabrics of ramie );

(xiii) all goods falling under Chapter 54 of the said Schedule except goods falling under heading Nos. 54.01;

(xiv) all goods falling under Chapter 55 of the said Schedule except goods falling under heading Nos. 55.05, 55.08 and shoddy yarn manufactured from used or new rags falling under heading No. 55.09 or 55.10;

¹⁰[(xv) all goods falling under Chapter 56 of the said Schedule except goods falling under heading Nos. 56.01, 56.02, 56.03, 56.04, 56.05 (other than of manmade filaments),"chenile yarn falling under sub-heading No.5606.00", 56.07 ( other than of jute ), 56.08 and 56.09;]

(xvi) all goods falling under Chapter 57 of the said Schedule;

¹⁰[(xvii) all goods falling under Chapter 58 of the said Schedule except goods falling under heading Nos. 58.03, 58.06, 58.07, 58.08, uncut grey (unprocessed) woven weft pile fabrics of cotton manufactured from grey unprocessed cotton yarn falling under sub-heading No.5801.21, fabrics of cotton or man-made fibres falling under sub-heading No.5802.51, and unprocessed cotton terry towelling fabrics falling under sub-heading No.5802.21;"unprocessed woven pile fabrics of cotton falling under subheading No. 5801.21 and unprocessed woven pile fabrics of manmade fibres falling under sub-heading No.5801.31]

(xviii) all goods falling under Chapter 59 of the said Schedule except goods falling under Heading Nos. 59.01, 59.05, 59.06, 59.08, 59.09 59.10, 59.11 and textile fabrics coated or laminated with preparations of low-density polyethylene;

(xix) all goods falling under Chapter 60 of the said Schedule except goods falling under sub-heading No.6002.10 and fabrics of cotton man-made fibres not subjected to any process falling under heading Nos. 60.01 or 60.02;

¹⁰[(xix-a) all goods falling under Chapter 62]

(xx) blankets of wool falling under Chapter 63 of the said Schedule;

(xxi) aluminium circles, whether or not trimmed, falling under Chapter 76;

(xxii)

(A) All goods falling under -

(a) heading No. 74.03, excluding the following goods falling under sub-heading No. 7403.21,namely -

(i) cast brass bars / rods of a length not exceeding 3 feet,

(ii) cast brass bars / rods of a length not exceeding 10 feet used in the factory of production for making wires falling under sub-heading No. 7408.29,

(iii) copper flats or a weight not exceeding 2 kilograms used for making copper strips falling under heading No. 74.09,

(iv) brass billets weighing upto five kilograms,

(b) heading No. 74.09 (excluding copper strips produced from copper flats of a weight not exceeding 2 kilograms),

(c) sub-heading Nos. 7407.11, 7407.12, 7408.11, 7408.21; and

(B)copper circles, whether or not trimmed."

¹⁰[(C)Ball or roller bearing falling under Chapter 84.]

(xxiii) all goods falling under heading Nos 87.01, 87.02, 87.03, 87.04, 87.05, 87.06 and 87.11 [other than powered cycles and powered cycle rickshaw ("powered cycle"or powered rickshaw means a mechanically propelled cycle or, as the case may be, mechanically propelled cycle rickshaw, which may also be peddled, if any necessity arises for so doing];

(xxiv) all goods falling under heading Nos 91.01 or 91.02;

¹⁰[(xxiv-a) All goods falling under chapter 93]

(xxv) all goods falling under sub-heading Nos 9605.10.

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Notes :

1. For the words "fifty lakh rupees", the words "one hundred lakh rupees" has been substituted vide Notification No. 47/2000 dated 1/9/2000

2. Has been added vide Notification No. Supra

3. Has been Omitted vide Notification No. Supra

4. Has been inserted vide Notification No. Supra

5. Has been Omitted vide Notification No. Supra

6. Has been inserted vide Notification No. Supra

7. Has been inserted vide Notification No. 6/2001 dated 1/3/2001

8. Has been inserted vide Notification No. 6/2001 dated 1/3/2001

9. Has been inserted vide Notification No. 6/2001 dated 1/3/2001

10. In ANNEXURE sub-clause(xi),(xv),(xvii),(xix),(xxii),(xxiv) has been amended vide Notification No. 6/2001 dated 1/3/2001

11. For the word, figure and letter "paragraph 4A", the words, figures and letters "paragraph 4A and the aggregate value of clearances of cartons, boxes, containers and cases of corrugated paper or paperboard; corrugated paper or paperboard or converted types of paper or paperboard intended for manufacture of cartons, boxes, containers and cases of corrugated paper or paperboard, that can be cleared at the concessional rate of sixty per cent of normal duty, shall be determined in accordance with the transitional provisions contained in paragraph 4B" has been substituted vide Notification No. 15/2001 dated 16/3/2001

12. Has been added vide Notification No. 15/2001 dated 16/3/2001

13. Has been inserted vide Notification No. 31/2000 dated 31/3/2000