Exempts first clearances for home consumption, falling under Chapter 51, 52, 54, 55, 58 or 60 of the First Schedule to the Central Excise Tariff Act, 1985
(This Notification has been superseded vide Notification No. 06/2004-CE, Dt. 19/01/2004)
NOTIFICATION NO. 35/2003-CE
DATED 30/04/2003
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), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts first clearances for home consumption, upto an aggregate value not exceeding 1[twenty five lakh rupees] made on or after the 1st day of April in any financial year, of fabrics, not subjected to any process falling under Chapter 51, 52, 54, 55, 58 or 60 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (herein after referred to as the specified goods), from the whole of the duty of excise specified thereon in the First Schedule to the said Central Excise Tariff Act and the First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act:
Provided that during the financial year 2003-2004, the exemption contained in this notification shall apply to the first clearances for home consumption of the specified goods, upto an aggregate value not exceeding 1[twenty five lakh rupees] made on or after the 30th day of April 2003.
2. The exemption contained in this notification shall apply subject to the following conditions, namely,-
(i) where a manufacturer clears the specified goods from one or more factories, the exemption in his case shall apply to the said aggregate value of clearances for home consumption and not separately for each factory;
(ii) where the specified goods are cleared by one or more manufacturers from a factory, the exemption shall apply to the said aggregate value of clearances for home consumption and not separately for each manufacturer;
(iii) the aggregate value of clearances for home consumption of specified goods, by the said manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed 1[thirty five lakh rupees] in a financial year:
Provided that in the financial year 2003-2004, the exemption shall apply only if the aggregate value of clearances of specified goods, by a manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed 1[thirty five lakh rupees] during the period beginning from the 30th day of April, 2003:
Provided further that in any financial year, if the aggregate value of clearances for home consumption of specified goods exceeds 1[thirty five lakh rupees], or as the case may be, in the financial year 2003-2004, if the aggregate value of clearances for home consumption of specified goods during the period beginning from the 30th day of April, 2003 exceeds 1[thirty five lakh rupees], the said manufacturer shall pay the amount of duty as payable, on the said first clearances of the specified goods of 1[twenty five lakh rupees], but for the exemption contained in this notification, within thirty days of the day when such clearance exceeds the said 1[thirty five lakh rupees;]
(iv) the manufacturer shall keep all documents relating to purchase of yarns;
(v) the manufacturer may opt not to avail the exemption contained in this notification and clear the specified goods on payment of normal rate of duty. However, once such option has been exercised during a financial year, the said manufacturer shall not be allowed to avail the exemption during the remaining part of that financial year.
Explanation.- For the purposes of this notification,-
(A) "value" means the value as determined in accordance with the provisions of section 4 of the said Central Excise Act;
(B) "normal rate of duty" means the duty of excise specified in the First Schedule to the said Central Excise Tariff Act and the First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act read with any relevant notification (other than this notification) issued under sub-section (1) of section 5A of the said Central Excise Act;
F. No B3/5 /2003-TRU
(Please refer Cir. No. 759/75/2003-CX, Dt. 30/10/2003 - Clarification regarding availability of clearance based exemption to the textile traders)
(Please refer CIR NO. 722/38/2003-CX, Dt. 09/06/2003 - Passing on of the credit of duty paid yarn by the exempted powerloom units to multiple buyers)
(Please refer Cir. No. 714/30/2003-CX, Dt. 14/05/2003 - Certain clarifications regarding Excise Duty Structure on textiles and textiles articles)
(Please refer CIR NO.713/29/2003-CX, DT. 07/05/2003 - Certain clarification regarding excise duty structure on textile and textile articles)
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Notes :
1. Has been substituted vide Notification No. 47/2003-CE, Dated 17/05/2003
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