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TMI BlogCentral Excise - Scheme of compounded levy for payment of duty by Independent textile processors effective from 1st May, 2001X X X X Extracts X X X X X X X X Extracts X X X X ..... ffective from 1st May, 2001. This scheme has been notified by Notification No. 16/2001-Central Excise (N.T.) read with Notification No. 20/2001-Central Excise, both dated the 30th April, 2001. 2. The salient features of the compounded levy scheme are mentioned below. 3. The scheme is an optional one. The scheme does not apply to open air stenters. It applies only to hot air stenters. An independent processor, who is eligible for availing of the scheme, has to apply for an option through an application to be submitted to the Commissioner of Central Excise by the 20th May, 2001. One important condition for eligibility is that the original value of investment on plant and machinery in the factory of the processor is not more than Rs. 3 cro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtant to mention that any textile processor intending to avail of the compounded levy scheme for an existing factory has to do so for the entire period of the remaining part of financial year, namely, from 1st May, 2001 to 31-3-2002. It is immaterial if the ownership of the factory has changed during the period from 1-3-2001 to 1-5-2001. The textile processor is not allowed to revert to the ad valorem duty scheme at any point of time up to 31-3-2002. Also, the textile processor is not allowed to opt for the scheme from a date subsequent to 1-5-2001. However, in the case of new processor who commences production for the first time on or after 1-5-2001, and who is eligible to avail the scheme should apply before commencement of production an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Assuming, however, that the number of chambers is reduced from 5.2 to 3.8 on 10-9-2001. No abatement for this reduction will be allowed and the textile processor will be required to pay duty on the basis of 5.2 chambers even after 10-9-2001. 9. It is to be emphasized that abatement on closure of factory only is allowed. However, this is allowed only when the factory is closed for all its manufacturing activities. In other words, the factory does not undertake manufacturing operation whether in the form of stentering of fabrics or by way of any other operation like bleaching, dyeing or printing. However, the stocks of stentered fabrics lying in the factory are allowed to be removed during the period of closure. 10. The benefit of abate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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