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TMI BlogThe Central Excise (Fifth Amendment) Rules, 2001 & Special procedure relating to processed textile fabricsX X X X Extracts X X X X X X X X Extracts X X X X ..... said rules, after rule 7A, the following rule shall be inserted, namely:- ' 7AA. Recovery of duty on articles of apparel manufactured on job work.-Every person who gets the goods, falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured on his account on job work, shall pay the duty leviable on such goods, at such time and in such manner as may be specified under these rules, whether the payment of such duty be secured by bond or otherwise, as if such goods have been manufactured by such person: Provided that such person may authorise the job worker to pay the duty leviable on such goods on his behalf and the job worker so authorized undertakes to discharge all liabilities and comply with all the provisions of these Rules: Explanation.- For the purposes of this rule, the expression "job worker" shall be deemed to mean the person who undertakes the process or processes that brings into existence the finished goods, complete in all respects, falling under Chapter 62 of the said First Schedule, in his factory. For the removal of doubt, it is further clarified that the job-worker may also get part of the proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-rule (1), the following shall be added at the end, namely:- "Provided that in respect of final products falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), CENVAT credit of the duty paid on inputs may be taken immediately on receipt of such inputs in the registered premises of the person who gets such final products manufactured on his account on job work subject to the condition that such inputs are used in the manufacture of such final products by the job worker.". 9. In the said rules, after section E-X., the following section shall be inserted, namely:- 'E-XA.- Processed Textile Fabrics 96 ZNA. Application to avail of special procedure.—(1) Where an independent processor of textile fabrics, who is engaged exclusively in the manufacture or production of processed textile fabrics falling under heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07, 55.11, 55.12, 55.13 or 55.14, or processed textile fabrics of cotton or man-made fibres, falling under heading Nos. or sub-heading Nos. 58.01, 58.02, 5806.10, 5806.40, 6001.12, 6001.22, 6001.92, 6002.20, 6002.30, 6002.43, or 6002.93 (hereinafter in this section referred to as the "said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the aid of power or steam exclusively in a hot air stentor and who has no proprietory interest in any factory primarily and substantially engaged in the spinning of yarn or weaving or knitting of fabrics, on or after the 1st day of May, 2001. Explanation II.- For the removal of doubt, it is hereby clarified that the provisions of this section shall not apply to an independent processor who carries out heat setting or drying with the aid of an open-air stenter installed in his factory. 96 ZNB. Conditions for availing of special procedure.- (1) The original value of the investment in the plant and machinery installed in the factory of the independent textile processor of the said goods, as on the 1st March, 2001 or on the 1st of May, 2001, whichever is higher, for an existing factory of the independent textile processor or on the date of making the application under rule 96ZNA in the case an independent textile processor commencing production for the first time in a new factory coming into existence after the 1st of May, 2001, shall not exceed three crore rupees, irrespective of whether such plant and machinery is in use or not, or is in working condition or not, and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng or knitting or crocheting of fabrics in one or more factories owned by the same public limited company; or c. fabrics other than the said goods produced or manufactured by the independent textile processor. 96ZNC. Discharge of liability for duty on payment of certain sum, etc.- (1) Having regard to the average production of the said goods per month per chamber of a hot-air stenter installed for the processing of the said goods and any other relevant factor, the Central Government may, by notification in the Official Gazette, fix, from time to time, the rate of duty per such chamber of a hot-air stenter per month, subject to such conditions and limitations as it may think fit to impose, and may fix different rates for different varieties of the said goods; and if a manufacturer whose application has been granted under rule 96ZNA pays a sum calculated according to such rate of duty in the manner and subject to the conditions and limitations hereinafter laid down or in any notification issued under any of the provisions of this section, such payment shall be a full discharge of his liability for duty leviable on his production of the said goods during the period for which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile processor shall be liable to a penalty not exceeding ten thousand rupees. 96 ZND. Procedure for claiming abatement.- (1) Where an independent textile processor does not produce or manufacture the said goods during any continuous period of not less than thirty days may claim abatement of the sum payable by him under rule 96 ZNC read with any notification issued thereunder, and such abatement shall be allowed by an order passed by the Joint Commissioner of Central Excise or the Additional Commissioner of Central Excise, as the case may be, of such amount as may be specified in such order, subject to fulfilment of the following conditions, namely:- a. the abatement shall be applicable only on complete closure of the factory and not on closure of any one or more hot-air stenters; b. during the period of closure no manufacturing activity, whatsoever, including bleaching, dyeing or printing, in respect of the said goods shall be undertaken and no removal of the said goods shall be effected by the independent textile processor; c. the independent textile processor shall inform, in writing, about the closure of the factory to the Deputy Commissioner of Central Excise or the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said rule are received and distributed to the job worker and the said goods are received from the job worker for further distribution or sale.". 11. In the said rules, in Appendix-I, under the heading "FORMS",- a. under the sub-heading "(I) List of Central Excise Forms", (I) against Series No. 3, in the column "Description of Form", the words, figure and letters "/pay duty under rule 7AA." shall be added at the end; (II) after Series No. 85 and the entries relating thereto, the following shall be inserted, namely:- Series No. Description of Form Rule No. Short Title "85A Application for permission to avail of the special procedure relating to processed textile fabrics 96ZNA A.S.P.1" ; (b) under the sub-heading " (II) Specimen Forms", after Central Excise Series No. 85 and Form relating thereto, the following Central Excise Series No. and Form shall be inserted, namely:- "Central Excise Series No. 85A Original Duplicate Triplicate FORM A.S.P. 1 Application for permission to avail of the special procedure relating to processed textile fabrics (Rule 96 ZNA) Name of factory/fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and width in centimeters) of chambers in each of the hot-air stenters, as on 1-3-2001 and 1-5-2001 in case of existing factory / on the date of making this application in case of new factory (Delete whichever is not applicable) Total value and quantity of processed textile fabrics produced/manufactured in the preceding F.Y. Total value and quantity of processed textile fabrics cleared in the preceding F.Y. Average value of processed textile fabrics cleared in the preceding F.Y. 1 2 3 4 5 6 7 8 9 10 5. I/We hereby declare that the particulars furnished above are true and correct in all respects. In case any of the particulars are found to be untrue/incorrect, I/We undertake to pay any additional amount of excise duty on the processed textile fabrics manufactured by me/us as per the provisions the Central Excise Act, 1944 or the rules or notifications issued thereunder. 6. I/We further declare that the original value of investment made in the above-mentioned factory is Rs…… in support of which the following documents and the Certificate of the Chartered Accountant/Cost Accountant is enclosed herewit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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