Budget 2002 Changes - No Addl. Duty in Lieu of Sales Tax - Provision for Woven Fabrics Changed - More Items Exempted - 026/2002 - Central Excise - Tariff

Budget 2002 Changes - No Addl. Duty in Lieu of Sales Tax - Provision for Woven Fabrics Changed - More Items Exempted 

Notification No. 26/2002-CE   Dated 27/04/2002

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), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby directs that each of the notifications of the Government of India, in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table hereto annexed, shall be amended or further amended, as the case may be, except as respects things done or omitted to be done before such amendment, in the manner specified in the corresponding entry in column (3) of the said Table.

TABLE

S.No.	Notification No. and date	Amendment
(1)	(2)	(3)
1.	9/96-Central Excise, dated the 23rd July, 1996	In the said notification,- (I) in the Table,- (i) against S.No. 13,- (a) for the entry in column (2), the following shall be substituted, namely:- "52"; (b) in column (3),- (i) in the opening paragraph, the words "or man-made fibres" shall be omitted; (ii) after item (3), the following items shall be inserted, namely:- "(4) Flanellete raising; (5) Damping on grey and bleached sorts; (6) Back filling on grey and bleached sorts; or (7) Padding, that is to say, applying starch or fatty material on one or both sides of the fabric."; (ii) after S.No. 13 and the entries relating thereto, the following shall be inserted namely:- (1) (2) (3) (4) (5) "13A 54 or55 Woven fabrics of man-made fibres subjected to any one or more of the following processes, namely:- (1) Calendering with plain rollers; (2) Padding, that is to say, application of starch to one or both sides of the fabrics; (3) Back filling, that is to say, application of starch to one side of the fabrics; (4) Hydro-extraction, that is to say, mechanically extracting or mechanically sqeezing out water from the fabric. Nil 1(c)";               (iii) after S.No. 31 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) "32. 5801.21,5801.31,5802.21 or5802.51 The following goods, which are exempt from the whole of the duty of excise, vide notification No. 8/2002-Central Excise, dated the 1st March, 2002, namely:- (i) uncut grey (unprocessed) woven weft pile fabrics of cotton manufactured from grey unprocessed cotton yarn; (ii) unprocessed woven pile fabrics of cotton; (iii) unprocessed woven pile fabrics of man-made fibres; (iv) unprocessed cotton terry towelling fabrics; (v) tufted fabrics of cotton or man-made fibres, not subjected to any process. Nil - 33. 6002.10 All goods which are exempt from the whole of the duty of excise vide notification No. 8/2002-Central Excise, dated the 1st March, 2002. Nil - 34. 5801.21,5801.31,5802.21 or 5802.51 The following goods, which are exempt from so much of the duty of excise as is in excess of the amount calculated at the rate of sixty per cent. of normal rate of duty vide notification No. 9/2002-Central Excise, dated the 1st March, 2002, namely:- (i) uncut grey (unprocessed) woven weft pile fabrics of cotton manufactured from grey unprocessed cotton yarn; (ii) unprocessed woven pile fabrics of cotton; (iii) unprocessed woven pile fabrics of man-made fibres; (iv) unprocessed cotton terry towelling fabrics; (v) tufted fabrics of cotton or man-made fibres, not subjected to any process. 2.4 per cent. ad valorem - 35. 6002.10 All goods which are exempt from so much of the duty of excise as is in excess of the amount calculated at the rate of sixty per cent. of normal rate of duty vide notification No. 9/2002-Central Excise, dated the 1st March, 2002. 2.4 per cent. ad valorem -";                                             (II) against Condition No. 1, for item (b), the following shall be substituted, namely:- "(b) woven fabrics of cotton, if such fabrics are processed in a factory having facilities (including plant and equipment) for carrying out bleaching, dyeing, printing, stentering, singeing (that is to say, burning away of knots and loose ends in the fabrics), cropping or butta cutting, curing or heat-setting or expanding or any one or more of these processes with the aid of power or steam; (c) woven fabrics of man-made fibres, if such fabrics are processed in a factory having facilities (including plant and equipment) for carrying out bleaching, dyeing printing, stentering, singeing (that is to say, burning away of knots and loose ends in the fabrics), cropping (that is to say, cutting away mechanically of loose ends from the fabrics), blowing (steam pressing carried on woven fabrics of acrylic fibre), or any one or more of these processes with the aid of power or steam.";
2.	6/2002-Central Excise, dated the 1st March, 2002	In the said notification,- (I) in the Table,- (a) after S.No. 32 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "32A 27.10 Avgas - Nil -";     (b) after S.No. 80 and the entries relating thereto, the following shall be inserted, namely: (1) (2) (3) (4) (5) (6) "80A 4011.10 or 4013.10 Tyres and tubes used in the manufacture of vehicles of heading No. 87.12 Nil - 5 80B 4013.10 Tubes supplied to a manufacturer of tyres for further supply for use in the manufacture of vehicles of heading No. 87.12 Nil - 5";         (c) after S.No. 108 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "108A 52.05 or 52.06 Cotton waste yarn of upto 2 counts manufactured from cotton waste on condenser card machines, in plain (straight) reel hanks Nil - -";     (d) against S.No. 114,- (i) for the entry in column (2), the following shall be substituted, namely:- "52"; (ii) in column (3),- (I) in the opening paragraph, the words "or man-made fibres" shall be omitted; (II) after item (3), the following items shall be inserted, namely:- "(4) Flanellete raising; (5) Damping on grey and bleached sorts; (6) Back filling on grey and bleached sorts; or (7) Padding, that is to say, applying starch or fatty material on one or both sides of the fabric."; (e) after S.No. 118 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "118A 54 or 55 Woven fabrics of man-made fibres subjected to any one or more of the following processes, namely:- (1) Calendering with plain rollers; (2) Padding, that is to say, application of starch to one or both sides of the fabrics; (3) Back filling, that is to say, application of starch to one side of the fabrics; (4) Hydro-extraction, that is to say, mechanically extracting or mechanically sqeezing out water from the fabric. Nil - 21(c)";               (f) after S.No. 157 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "157A 66.01 Parts of umbrellas and sun umbrellas Nil - - 157B 66.02 Parts of walking-sticks, seat-sticks, whips, riding-crops and the like Nil - - 157C 6807.20 All goods Nil - - 157D 6903.10 All goods Nil - -";         (g) after S.No. 179 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "179A 7323.90 Parts of all goods, other than parts of pressure cookers Nil - - 179B 7326.19 Forgings and forged products of iron or steel used in the manufacture of parts and accessories of cycle and cycle rickshaws falling under Chapter 40, 73, 83, 85, 87 or 95 Nil - - 179C 7326.21 All goods Nil - -";         (h) after S.No. 183 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "183A 7418.10 Parts of all goods Nil - -";     (i) after S. No. 188 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "188A 7615.10 Parts of all goods, other than parts of pressure cookers Nil - -";     (j) after S.No. 196 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "196A 8413.91 or 8414.99 Parts of hand pumps Nil - - 196B 8414.91 All goods Nil - -";       (k) after S.No. 201 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "201A 8481.20 or 8481.92 All goods Nil - -";     (l) after S.No. 202 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "202A 8524.32 All goods Nil - -";     (m) after S.No. 219 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "219A 87.14 Parts and accessories of vehicles of heading No. 87.12 Nil - - ";     (n) after S.No. 223 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "223A 90.18,90.19 or 9022.10 Parts and accessories Nil - - 223B 90 or any other Chapter Parts and accessories of medical equipment and other goods specified in List I annexed to notification No.10/2002-Central Excise, dated the 1st March, 2002 Nil - - ";         (o) after S.No. 226 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) (6) "226A 9405.10 Parts of kerosene pressure lanterns including gas mantles for use in kerosene pressure lanterns Nil - - 226B 95.01, 95.02 or 95.03 Parts and accessories Nil - -";         (II) in the Annexure, against Condition No. 21, for item (b), the following shall be substituted, namely:- "(b) woven fabrics of cotton, if such fabrics are processed in a factory having facilities (including plant and equipment) for carrying out bleaching, dyeing, printing, stentering, singeing (that is to say, burning away of knots and loose ends in the fabrics), cropping or butta cutting, curing or heat-setting or expanding or any one or more of these processes with the aid of power or steam; (c) woven fabrics of man-made fibres, if such fabrics are processed in a factory having facilities (including plant and equipment) for carrying out bleaching, dyeing printing, stentering, singeing (that is to say, burning away of knots and loose ends in the fabrics), cropping (that is to say, cutting away mechanically of loose ends from the fabrics), blowing (steam pressing carried on woven fabrics of acrylic fibre), or any one or more of these processes with the aid of power or steam.";
3.	8/2002-Central Excise, dated the 1st March, 2002	In the said notification,- (a) in paragraph 3, after the first proviso, the following proviso shall be added, namely:- "Provided further that the clearances for home consumption of goods falling under heading Nos. 25.04, 68.07 or sub-heading No. 3605.10, whether on payment of duty or otherwise, between 1st April, 2002 and 26th April, 2002, (both days inclusive) shall be taken into account while computing the aggregate value of clearances at Nil rate of duty under Sl.No. I of the said Table for the financial year 2002-2003."; (b) in the Explanation, after clause (I), the following shall be inserted, namely:- "(J) refund of duty paid on clearances made before the 27th day of April, 2002 on the ground that such clearances are included in the aggregate value of clearances under Sl.No. 1 of the said Table, shall not be admissible."; (c) in the Annexure,- (i), item (v) and the entry relating thereto shall be omitted; (ii) for item (vii) and the entry relating thereto, the following shall be substituted, namely;- "(vii) all goods falling under sub-heading No. 3605.90;".
4.	9/2002-Central Excise, dated the 1st March, 2002	In the said notification,- (a) in paragraph 3, after the first proviso, the following proviso shall be added, namely:- "Provided further that the clearances for home consumption of goods falling under heading Nos. 25.04, 68.07 or sub-heading No. 3605.10, whether on payment of duty or otherwise, between 1st April, 2002 and 26th April, 2002, (both days inclusive) shall be taken into account while computing the aggregate value of clearances at concessional rate of sixty per cent. of normal rate of duty under Sl.No. I of the said Table for the financial year 2002-2003."; (b) in the Explanation, after clause (I), the following shall be inserted, namely:- "(J) refund of duty paid on clearances made before the 27th day of April, 2002 on the ground that such clearances are included in the aggregate value of clearances under Sl.No. 1 of the said Table, shall not be admissible."; (c) in the Annexure,- (i), item (v) and the entry relating thereto shall be omitted; (ii) for item (vii) and the entry relating thereto, the following shall be substituted, namely;- "(vii) all goods falling under sub-heading No. 3605.90;".
5.	10/2002-Central Excise, dated the 1st March, 2002	In the said notification, in the Table,- (i) against S.No. 19, for the entry in column (3), the following shall be substituted, namely,- "Umbrellas and sun umbrellas"; (ii) against S.No. 20, for the entry in column (3), the following shall be substituted, namely,- "Walking-sticks, seat-sticks, whips, riding-crops and the like"; (iii) S.No. 24 and the entries relating thereto shall be omitted; (iv) S.No. 25 and the entries relating thereto shall be omitted; (v) against S.No. 28, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts"; (vi) S.No. 29 and the entries relating thereto shall be omitted; (vii) S.No. 30 and the entries relating thereto shall be omitted; (viii) against S.No.31, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts"; (ix) against S.No.32, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts"; (x) against S.No.35, for the entry in column (2), the following shall be substituted, namely,- "8413.11, 8413.12, 8413.13, 8413.14 or 8413.20 "; (xi) against S.No.36, for the entry in column (2), the following shall be substituted, namely,- "8414.10 or 8414.20 "; (xii) S.No. 37 and the entries relating thereto shall be omitted; (xiii) S.No. 39 and the entries relating thereto shall be omitted; (xiv) S.No. 41 and the entries relating thereto shall be omitted; (xv) against S.No.42, in column (3), for the words "other goods", the words "other goods (other than parts and accessories thereof)" shall be substituted; (xvi) against S.No.43, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts and accessories thereof "; (xvii) against S.No.44, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts and accessories thereof "; (xvviii) against S.No.45, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts and accessories thereof "; (xix) against S.No. 46, for the entry in column (3), the following shall be substituted, namely,- "Kerosene pressure lanterns"; (xx) against S.No. 48, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts and accessories thereof"; (xxi) against S.No. 49, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts and accessories thereof"; (xxii) against S.No. 50, for the entry in column (3), the following shall be substituted, namely,- "All goods other than parts and accessories thereof"; (xxiii) after S.No. 50 and the entries relating thereto the following shall be inserted , namely:- (1) (2) (3) (4) "51 Any Chapter Waste and scrap arising during the course of manufacture of the goods specified against S. No. 9 to 50 above Nil";
6.	14/2002-Central Excise, dated the 1st March, 2002	In the said notification,- (i) after the second proviso, the following proviso shall be inserted, namely:- "Provided also that during the period commencing from the date of issue of this notification and ending on the 28th day of February, 2005, the aggregate duty in respect of the goods specified against S.No. 5A shall be further exempted in excess of fifty per cent. of the rate specified in the corresponding entry in column (4) of the said Table, and shall be apportioned in the ratio of 1:1 between the duty leviable under the said Central Excise Act and the said Additional Duties of Excise (Goods of Special Importance) Act."; (ii) after Explanation III, the following shall be inserted, namely:- "Explanation IV.- For the removal of doubt, it is hereby clarified that the exemption under S.No. 5A of the Table shall apply only if the said woven fabrics of cotton have been already subjected to bleaching, dyeing or printing or any one or more of these processes without the aid of power or steam. Explanation V.- For the removal of doubt, it is hereby clarified that once a manufacturer opts to pay duty in respect of goods specified against S.No. 2, 11, 13 or 15, as the case may be, of the Table below, he shall do so in respect of all the clearances of the said goods from his factory or warehouse, as the case may be, specified against each of the aforesaid S.No. till such time he opts not to pay duty. Explanation VI.- For the removal of doubt, it is hereby clarified that Condition No. 1 or 3, as the case may be, shall be deemed to have been fulfilled even if CENVAT credit in respect of capital goods, which are not used exclusively in the manufacture of exempted goods, is availed under the CENVAT Credit Rules, 2002."; (iii) in the Table, after S.No. 5 and the entries relating thereto, the following shall be inserted, namely:- (1) (2) (3) (4) (5) "5A 52.07, 52.08 or 52.09 Woven fabrics of cotton subjected to stentering with the aid of an open-air stenter, singeing, cropping or butta-utting, curing or heat- setting, or expanding, or any one or more of these processes with the aid of power or steam, subject to the condition the said fabrics are processed in a factory which does not have the facilities (including plant and equipment) for carrying out bleaching dyeing, or printing or any one or more of these processes with the aid of power or steam. Explanation.- For the purposes of this notification, "open-air stenter" means stenters commonly known as open-air stenters and includes a stenter with a simple outer cover to prevent loss of heat but does not include any stenter which runs on steam or a hot-air stenter. 16% -";
7	15/2002-Central Excise, dated the 1st March, 2002	In the said notification, the Explanation shall be numbered as Explanation I and after the Explanation I so numbered, the following shall be inserted, namely:- "Explanation II.- For the removal of doubt, it is hereby clarified that once a manufacturer opts to pay duty in respect of goods from his factory or warehouse, as the case may be, specified against S.No. 2, 5, 8, 12 or 15, as the case may be, of the Table below, he shall do so in respect of all the clearances of the said goods specified against each of the aforesaid S.No. till such time he opts not to pay duty. Explanation III.- For the removal of doubt, it is hereby clarified that Condition No. 1 or 4, as the case may be, shall be deemed to have been fulfilled even if CENVAT credit in respect of capital goods, which are not used exclusively in the manufacture of exempted goods, is availed under the CENVAT Credit Rules, 2002."

(F. No. B-10/2/2002-TRU)

Footnote : (1) The principal notification No. 9/96-Central Excise, dated the 23rd July, 1996 was published in the Gazette of India, vide number G.S.R. 307 (E), dated the 23rd July, 1996, Notification No. 24/2002-Central Excise, dated the 28th March, 2002, vide number G.S.R. 234 (E), dated the 28th March, 2002, and was last amended by Ntf. No. 47/2002-CE, Dt. 06/09/2002).

(2) The principal notification No. 6/2002-Central Excise, dated the 1st March, 2002 was published in the Gazette of India, Extraordinary, vide number G.S.R. 127 (E), dated the 1st March, 2002.

(3) The principal notification No. 8/2002-Central Excise, dated the 1st March, 2002 was published in the Gazette of India, vide number G.S.R. 129 (E), dated the 1st March, 2002, and was last amended by Ntf. No. 47/2002-CE, Dt. 06/09/2002.

(4) The principal notification No. 9/2002-Central Excise, dated the 1st March, 2002 was published in the Gazette of India, vide number G.S.R. 130 (E), dated the 1st March, 2002, and was last amended by Ntf. No. 47/2002-CE, Dt. 06/09/2002.

(5) The principal notification No. 10/2002-Central Excise, dated the 1st March, 2002 was published in the Gazette of India, vide number G.S.R. 131 (E), dated the 1st March, 2002, and has been last amended vide Ntf. No. 44/2002-CE, date 28/08/2002.

(6) The principal notification No. 14/2002-Central Excise, dated the 1st March, 2002 was published in the Gazette of India, Extraordinary, vide number G.S.R. 135 (E), dated the 1st March, 2002, and was last amended by Ntf. No. 47/2002-CE, Dt. 06/09/2002).

(7) The principal notification No. 15/2002-Central Excise, dated the 1st March, 2002 was published in the Gazette of India, Extraordinary, vide number G.S.R. 136 (E), dated the 1st March, 2002.

(Ntf.Nos.14/2002-CE., & 15/2002-CE., has been last amended vide Ntf. No.37/2002-CE., date 03/07/2002)

(Pl. refer Ntf. No. 33/2002-CE, Dt.18/06/2002)