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TMI BlogExcise Exemption to specified goods of factories in North East (Assam, Tripura, Meghalaya, Mizoram, Manipur, Nagaland or Arunachal Pradesh)X X X X Extracts X X X X X X X X Extracts X X X X ..... n 20 microns as specified by the Ministry of Environment and Forests Notification No. S.O.705 (E) dated the 2nd of September, 1999 and S.O. 698(E) dated the 17th of June, 2003 and goods falling under Chapter 27 of the said First Schedule and which are produced by petroleum oil or gas refineries and cleared from a unit located in the state of Assam or Tripura or Meghalaya or Mizoram or Manipur or Nagaland or Arunachal Pradesh, as the case may be, or (b) Omitted from so much of the duty of excise leviable thereon under any of the said Acts as is equivalent 1[to the duty payable on value addition undertaken in the manufacture of the said goods by the said unit.] 2[2A The duty payable on value addition shall be equivalent to the amount calculated as a percentage of the total duty payable on the said excisable goods of the description specified in column (3) of the Table below (hereinafter referred to as the said Table) and falling within the Chapter of the said First Schedule as are given in the corresponding entry in column (2) of the said Table, 3"when manufactured starting from inputs specified in the corresponding entry in column (5) of the said Table in the same factory,&q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, by the 7th of the next month in which the duty has been paid; (b) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, after such verification as may be deemed necessary, shall refund the duty payable on value addition, computed in the manner as specified in paragraph 2A to the manufacturer by the 15th of the month following the one in which the statement as at clause (a) above has been submitted. 2D Notwithstanding anything contained in sub-paragraph 2C above,- (a) the manufacturer at his own option, may take credit of the amount calculated in the manner specified in paragraph 2A in his account current, maintained in terms of the Excise Manual of Supplementary Instructions issued by the Central Board of Excise and Customs. Such amount credited in the account current may be utilized by the manufacturer for payment of duty, in the manner specified under rule 8 of the Central Excise Rules, 2004, in subsequent months, and such payment shall be deemed to be payment in cash; (b) the credit of the refund amount may be taken by the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to have been cleared without payment of duty to the extent of utilisation of such irregular or excess credit. Explanation.-For the purposes of this paragraph, duty paid by utilisation of the amount credited in the account current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT Credit Rules, 2004. 2.1 5(1) Notwithstanding anything contained in paragraph 2A, the manufacturer shall have the option not to avail the rates specified in the said Table and apply to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, having jurisdiction over the manufacturing unit of the manufacturer for fixation of a special rate representing the actual value addition in respect of any goods manufactured and cleared under this notification, if the manufacturer finds that the actual value addition in the production or manufacture of the said goods is at least 115 per cent of the rate specified in the said Table and for the said purpose, the manufacturer may make an application in writing to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, not l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stments be made in the subsequent refunds admissible to the manufacturer in the month following the fixation of such special rate. (4) Where the Central Government considers it necessary so to do, it may- (a) revoke the special rate or amount of refund as determined under sub-paragraph (2) by the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, or (b) direct the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, to withdraw the rate so fixed. Explanation: For the purpose of this paragraph, the actual value addition in respect of said goods shall be calculated on the basis of the financial records of the preceding financial year, taking into account the following: (i) Sale value of the said goods excluding excise duty, Value Added Tax and other indirect taxes, if any, paid on the goods; (ii) Less: Cost of raw materials and packing material consumed in the said goods; (iii) Less: Cost of fuel consumed if eligible for input credit under CENVAT Credit Rules, 2004; (iv) Plus: Value of said goods available as inventory in the unit but not cleared, at the end of the financial ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zation of CENVAT credit, for the year, the differential amount, if any, shall be refunded to him subject to the condition that the total refund made to him during the year, including the aforesaid differential amount, does not exceed the total duty payable on value addition whether at the rate specified in the Table or at the special rate fixed under paragraph 2.1. (2) The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall refund the differential amount, if any, to the manufacturer not later than the 15th day of May in the subsequent financial year. " 3. The exemption contained in this notification shall apply only to the following kind of units, namely:- (a) New industrial units which have commenced their commercial production on or after the 24th day of December, 1997 but not later than the 31st day of March, 2007 ; (b) Industrial units existing before the 24th day of December, 1997 but which have undertaken substantial expansion by way of increase in installed capacity by not less than twenty five per cent on or after the 24th day of December, 1997 but not later than the 31st day of March, 2007 . 4. The exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. Gas based Intermediate Products (i) Gas exploration and Production (ii) Gas Distribution and Bottling (iii) Power Generation (iv) Plastics (v) Yam Raw Materials (vi) Fertilizers (vii) Methanol (viii) Formaldehyde and FR Resin Melamine and MF Resin (ix) Methylamine or Hexamethylene Tetranine or Ammonium Bi-Carbonate (x) Nitric Acid and Ammonium Nitrate (xi) Carbon Black (xii) Polymer Chips 14. Agro Forestry 15. Horticulture 16. Mineral based. Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this notification, "Mineral" does not include crude petroleum oils and the expression "Mineral based" shall be construed accordingly. 17. Floriculture 18. Agro based Sd/- (T. R. Rustagi) Joint Secretary to the Government of India *************************** Notes: (As amended by Notifications) No. 45/99-CE, dated 31-12-1999; No. 1/2000-CE, dated 17-1-2000; No. 3/2000-CE, dated 9-2-2000; No. 1/2001-CE, dated 22-1-2001; No. 6/2001-Ce, dated 1-3-2001; No. 35/2001-CE, dated 29-6-2001; No. 11/2002-CE, dated 1-3-2002; No. 61/2002-CE, dated 23-12-2002; 1Section 154(1) read with 9th Schedule to the Finance Act, 2003 (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary,shall refund the amount of duty paid other than the amount of duty paid by utilisation of CENVAT credit under the CENVAT Credit Rules, 2001, during the month under consideration to the manufacturer by the 15th of the next month. Provided that in cases, where the exemption contained in this notification is not applicable to some of the goods produced by a manufacturer, such refund shall not exceed the amount of duty paid less the amount of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of goods cleared under this notification. (c) If there is likely to be any delay in the verification, Assistant Commissioner of Central Excise or the Deputy Commissioner of Central excise, as the case may be, shall refund the amount on provisional basis by the 15th of the next month to the month under consideration and thereafter may adjust the amount of refund by such amount as may be necessary in the subsequent refunds admissible to the manufacturer. 2A. Notwithstanding anything contained in paragraph 2,- (a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under consideration, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. In case the credit taken by the manufacturer is in excess of the amount determined, the manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from the said account current maintained by him. In case, the credit taken by the manufacturer is less than the amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount; (f) in case the manufacturer fails to comply with the provisions of clause (a) to (e), he shall forfeit the option, to take credit of the amount of duty during the month under consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002,in his account current on his own, as provided for in clauses (a) and (c); (g) the amount of the credit availed irregularly or availed of in excess of the amount determined correctly refundable under clause (e) and not reversed by the manufacturer within the period specified in that clause, shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he is satisfied that the manufacturer was prevented by sufficient cause from making the application within the aforesaid time, allow such manufacturer to make the application within a further period of thirty days: Provided further that the manufacturer supports his claim for a special rate with a certificate from his statutory auditor containing an estimate of value addition in the case of goods for which a claim is made, based on the audited balance sheet of the unit, for the preceding financial year;" 6. For the words six months", the words "three months" has been substituted vide Notification No. Supra 7. Has been substituted vide Notification No. Supra before it was read as, "5.The manufacturer shall be entitled to refund at the special rate fixed under sub-paragraph (2) in respect of all clearances of excisable goods manufactured and cleared under this notification with effect from the date on which the application referred to at sub-paragraph (1) was filed with the Commissioner of Central Excise or Commissioner of Central Excise and Customs, as the case may be." 8. Has been inserted vide Notification No. Supra 9. Has been inserted vide Not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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