Trade Notice No       72            /2001

         Dated:

18    07-2001

NOTIFICATION No. 52/2001-Central Excise (N.T.)

G.S.R. (E).- In exercise of the powers conferred by rule 11 of the CENVAT Credit Rules, 2001, the Central Government, hereby declares the following inputs (hereinafter referred to as the ëdeclared inputsí) and final products falling within the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), as specified in the Table below, namely:-

TABLE

Inputs

Texturised yarn (including draw twisted, draw wound yarn) of polyesters, falling under heading No. 54.02 of the said First Schedule.

2. The Central Government further declares that a duty of excise of Rs. 18 per kg., shall be deemed to have been paid under the Central Excise Act, 1944 (hereinafter referred to as declared duty), on the declared inputs, when purchased by a manufacturer of the final products, and credit of the declared duty so deemed to have been paid shall be allowed to the manufacturer of the final products, without production of documents evidencing payment of duty on the said inputs, at the time of clearance of the said final products.

3. The credit of declared duty allowed in respect of the declared inputs shall be utilized only towards payment of duty of excise leviable under the said Central Excise Act, on the said final products:

Provided that the credit of declared duty in respect of the declared inputs used in the final products cleared for export under bond shall be allowed to be utilized towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and, where for any reason, such adjustment is not possible, by refund to the manufacturer subject to such safeguards, conditions and limitations as may be specified by the Central Government in the Official Gazette.

Provided further that no such refund of declared duty shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties (Drawback) Rules, 1971 or claims rebate of duty under rule 18 of the Central Excise (No. 2) Rules, 2001, in respect of such duty.

4. Where the final products have been removed clandestinely without payment of duty of excise leviable under the Central Excise Act, 1944 (1 of 1944), or as the case may be, the additional duty leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), at the time of clearance of such final products, nothing contained in this notification shall apply in respect of such final products even if the duty of excise leviable on such final products is paid after such removal.

5. The provisions of this notification shall not apply to final products on which duty of excise leviable under the Central Excise Act, 1944 (1 of 1944), or as the case may be, the additional duty leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), has not been levied or paid or has been short-levied or short paid or erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any provisions of the Central Excise Act or of the rules made thereunder with intent to evade payment of duty.

6. This notification shall come into effect on and from the 1st day of July, 2001.

Explanation I.- It is clarified that even if the declared inputs are used directly by a manufacturer of final products the credit of the declared duty shall, notwithstanding the actual amount of duty paid on such declared inputs, be deemed to be equivalent to the amount specified in this notification and the credit of the declared duty shall be allowed to such manufacturer.

Explanation II.- For the purposes of this notification, ìcomposite millî means a manufacturer who is engaged in the processing of fabrics with the aid of power along with weaving or knitting or crocheting of fabrics within the same factory and includes a multi-locational composite mill, i.e., a public limited company which is engaged in the processing of fabrics with the aid of power along with weaving or knitting or crocheting of fabrics in one or more factories owned by the same public limited company.

(G.D.Lohani)

Under Secretary to the Government of India

F.No. 357/9/2001-TRU

NOTIFICATION No. 53/2001-Central Excise (N.T.)

G.S.R. (E).- In exercise of the powers conferred by rule 11 of the CENVAT Credit Rules, 2001, the Central Government, hereby declares the following inputs (hereinafter referred to as the ìdeclared inputsî) and final products falling within the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said First Schedule), as specified in the Table below, namely:-

TABLE

S.No.

Inputs

(1)

Goods falling within heading No. 51.05, 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02, 54.03, 54.04, 54.05, 55.01, 55.02, 55.03, 55.04, 55.05, 55.06, 55.07, 55.09, 55.10, 56.04, 56.05 or 56.06 of the said First Schedule.

(2)

(i) Goods falling within heading No. 51.05, 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02, 54.03, 54.04, 54.05, 55.01, 55.02, 55.03, 55.04, 55.05, 55.06, 55.07, 55.09, 55.10, 56.04, 56.05 or 56.06 of the said First Schedule;

(ii) Dyes, chemicals, consumables, packaging materials falling within the said First Schedule.

(3)

Goods falling within heading No. 52.05 or 52.06 of the said First Schedule

2. The Central Government further declares that, -

(i) the duty of excise under the Central Excise Act, 1944 (1 of 1944);

(ii) the additional duty under section 3 of the Customs Tariff Act, 1975 (51 of 1975); or

(iii) the additional duty of excise under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978),

(hereinafter referred to as the declared duty) shall be deemed to have been paid on the declared inputs and the same,-

(i) in case of a composite mill, shall be equivalent to the amount calculated at the rate of, ñ

(a) 20 per cent. of the aggregate of the duty of excise leviable under the Central Excise Act, 1944 (1 of 1944) and the additional duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) read with any notification for the time being in force, on the final products of cotton (not containing any other textile material) declared herein;

(b) 45 per cent. of the aggregate of the duty of excise leviable under the Central Excise Act, 1944 (1 of 1944) and the additional duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) read with any notification for the time being in force, on the final products other than those specified in sub-clause (a),

(ii) in case of a manufacturer other than a composite mill, shall be equivalent to the amount calculated at the rate of, ñ

(a) 25 per cent. of the aggregate of the duty of excise leviable under the Central Excise Act, 1944 (1 of 1944) and the additional duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) read with any notification for the time being in force, on the final products of cotton (not containing any other textile material) declared herein;

(b) 50 per cent. of the aggregate of the duty of excise leviable under the Central Excise Act, 1944 (1 of 1944) and the additional duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) read with any notification for the time being in force, on the final products other than those specified in sub-clause (a),

and credit of the declared duty so deemed to have been paid shall be allowed to the manufacturer of the final products, without production of documents evidencing payment of duty on the declared inputs, at the time of clearance of the said final products.

3. The credit of declared duty allowed in respect of the declared inputs shall be utilized towards payment of duty of excise or the additional duty of excise leviable under the said Central Excise Act and the Additional Duties of Excise (Goods of Special Importance) Act, on the said final products:

Provided that the credit of declared duty in respect of the declared inputs used in the final products cleared for export under bond shall be allowed to be utilized towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and, where for any reason, such adjustment is not possible, by refund to the manufacturer subject to such safeguards, conditions and limitations as may be specified by the Central Government in the Official Gazette:

Provided further that no such refund of declared duty shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties (Drawback) Rules, 1971 or claims rebate of duty under rule 18 of the Central Excise (No. 2) Rules, 2001, in respect of such duty.

4. The provisions of this notification shall not apply to a manufacturer (other than a composite mill) who avails any credit, under rule 3 of the CENVAT Credit Rules, 2001, in respect of the declared inputs and the declared inputs are used in the manufacture of the said final products.

Explanation. ñ It is clarified that the CENVAT credit in respect of capital goods, under rule 3 of the CENVAT Credit Rules, 2001, shall be allowed to the said manufacturer (other than a composite mill) subject to the conditions as specified under rule 4 of that rules.

5. The provisions of this notification shall not apply to a manufacturer who avails of the special procedure for payment of excise duty under rule 15 of the Central Excise (No. 2) Rules, 2001 and pays the specified amount of duty in accordance with a notification issued thereunder.

6. In respect of a composite mill, the provisions of this notification shall apply only to processed fabrics manufactured from unprocessed fabrics not woven in the same composite mill, subject to the condition that no credit has been taken in respect of the declared inputs contained in such unprocessed fabrics under any other rule of the CENVAT credit Rules, 2001 or notification issued thereunder.

Explanation. ñ It is clarified that the CENVAT credit in respect of capital goods, under rule 3 of the CENVAT Credit Rules, 2001, shall be allowed to the said composite mill subject to the conditions as specified under rule 4 of that rules.

7. The provisions of this notification shall not apply to final products on which duty of excise leviable under the Central Excise Act, 1944 (1 of 1944), or as the case may be, the additional duty leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), has not been levied or paid or has been short-levied or short paid or erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any provisions of the Central Excise Act or of the rules made thereunder with intent to evade payment of duty.

8. This notification shall come into effect on and from the 1st day of July, 2001.

Explanation 1.- It is clarified that even if the declared inputs are used directly by a manufacturer of final products the credit of the declared duty shall, notwithstanding the actual amount of duty paid on such declared inputs, be deemed to be equivalent to the amount specified in this notification and the credit of the declared duty shall be allowed to such manufacturer.

Explanation 2.- For the purposes of this notification, ìcomposite millî means a manufacturer who is engaged in the processing of fabrics with the aid of power along with the spinning of yarn from fibres and weaving or knitting or crocheting of fabrics within the same factory and includes a multi-locational composite mill, i.e., a public limited company which is engaged in the processing of fabrics with the aid of power along with the spinning of yarn from fibres and weaving or knitting or crocheting of fabrics in one or more factories owned by the same public limited company.

Explanation 3.- For the removal of doubt it is clarified that the provisions of this notification shall not apply where processed fabric itself is used as an input for further processing.

Explanation 4.- For the removal of doubt it is clarified that the provisions of paragraph 4 shall not apply to a manufacturer who avails of any credit, under rule 3 of the CENVAT Credit Rules, 2001, in respect of the declared inputs where the said declared inputs are used in manufacture of final products other than the said final products.

(G.D.Lohani)

Under Secretary to the Government of India

F.No. 357/9//2001-TRU.

NOTIFICATION No. 54/2001-Central Excise (N.T.)

G.S.R. (E).- In exercise of the powers conferred by rule 11 of the CENVAT Credit Rules, 2001, the Central Government hereby declares the following inputs (hereinafter referred to as the ìdeclared inputsî) and final products falling within the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said First Schedule), as specified in the Table below, namely:-

TABLE

Inputs

(i) Fabrics falling under Chapter 50, 51, 52, 53, 54, 55 , 58 , 59 or 60 of the said First Schedule.

(ii) Other raw materials, parts, components, trimmings and embellishments, consumables and packaging materials falling within the said First Schedule.

2. The Central Government further declares that-

(i) the duty of excise under the Central Excise Act, 1944 (1of 1944); or

(ii) the additional duty under section 3 of the Customs Tariff Act, 1975 (51 of 1975),

(hereinafter referred to as the declared duty) shall be deemed to have been paid on the declared inputs and the same shall be equivalent to the amount calculated at the rate of 20 per cent. of the duty of excise leviable under the Central Excise Act, 1944 (1 of 1944) read with any notification for the time being in force, on the final products declared herein and credit of the declared duty so deemed to have been paid shall be allowed to the manufacturer of the final products, without production of documents evidencing payment of duty on the declared inputs, at the time of clearance of the said final products.

3. The credit of declared duty allowed in respect of the declared inputs shall be utilized towards payment of duty of excise leviable under the said Central Excise Act, on the said final products:

Provided that the credit of declared duty in respect of the declared inputs used in the final products cleared for export under bond shall be allowed to be utilized towards payment of duty of excise on the final products cleared for home consumption or for export on payment of duty and, where for any reason, such adjustment is not possible, by refund to the manufacturer subject to such safeguards, conditions and limitations as may be specified by the Central Government in the Official Gazette:

Provided further that no credit or refund of such declared duty shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties (Drawback) Rules, 1971 or claims rebate of duty under rule 18 of the Central Excise (No. 2) Rules, 2001, in respect of such duty.

4. The provisions of this notification shall not apply to a manufacturer who avails of any credit under rule 3 of the CENVAT Credit Rules, 2001, in respect of the declared inputs and the declared inputs are used in the manufacture of the said final products.

Explanation.- It is clarified that the CENVAT credit in respect of capital goods, under rule 3 of the CENVAT Credit Rules, 2001, shall be allowed to the said manufacturer subject to the conditions as specified under rules 4 of that rules.

5. The provisions of this notification shall not apply to final products on which duty of excise leviable under the Central Excise Act, 1944 (1 of 1944), has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any provision of the said Central Excise Act or of the rules made thereunder with intent to evade payment of duty.

6. This notification shall come into effect on and from the 1st day of July, 2001.

Explanation I.- For the purposes of this notification, the expression ìmanufacturerî shall include a person who is liable to pay the duty of excise leviable on the said final products under sub-rule (3) of rule 4 of the Central Excise (No. 2) Rules, 2001.

Explanation II.- It is clarified that even if the declared inputs are used directly by a manufacturer of final products, the credit of the declared duty shall, notwithstanding the actual amount of duty paid on such declared inputs, be deemed to be equivalent to the amount specified in this notification and the credit of the declared duty shall be allowed to such manufacturer.

Explanation III.- For the removal of doubt, it is clarified that the provisions of paragraph 4 shall not apply to a manufacturer who avails of any credit under rule 3 of the CENVAT Credit Rules, 2001, in respect of the declared inputs where the said declared inputs are used in manufacture of final products other than the said final products.

Explanation IV.- It is hereby clarified that credit of the declared duty shall be allowed in respect of final products lying in stock as on the 30th April, 2001 in the premises of the manufacturer registered under rule 174 of the Central Excise Rules, 1944 and removed on or after the 1st July, 2001.

(G.D.Lohani)

Under Secretary to the Government of India

F.No.357 9//2001-TRU

NOTIFICATION No. 55/2001-Central Excise (N.T.)

G.S.R. (E).- In exercise of the powers conferred by rule 11 of the CENVAT Credit Rules, 2001, the Central government hereby declares the following inputs and the final products falling within the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the ìsaid First Scheduleî), as specified in the Table below, namely:-

TABLE

Inputs

Processed textile fabrics falling under Chapter 52, 54 or 55, or processed textile fabrics of cotton or man-made fibres falling under heading No. or sub-heading No. 58.01, 58.02, 5806.10, 5806.40, 6001.12, 6001.22, 6001.92, 6002.20, 6002.30, 6002.43 or 6002.93, of the said First Schedule and on which duty of excise has been paid in accordance with the provisions of rule 15 of the Central Excise (No. 2) Rules, 2001 read with any notification issued thereunder.

2. The Central Government further declares that the duties of excise under the Central Excise Act, 1944 (1 of 1944) and the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), shall be deemed to have been paid (hereinafter referred to as deemed duty) on the inputs declared herein and the same shall be one rupee each per square meter of such inputs, and credit of the deemed duty so determined shall be allowed to the manufacturer of the final products.

3. (1) The credit of deemed duty allowed in respect of the duty of excise under the said Central Excise Act, shall be utilised only towards payment of the duty of excise leviable under the said Central Excise Act on the final products, and no part of the credit allowed shall be refunded in cash or by cheque.

(2) The credit of deemed duty allowed in respect of the duty of excise under the said Additional Duties of Excise (Goods of Special Importance) Act, shall be utilised only towards payment of the duty of excise leviable under the said Additional Duties of Excise (Goods of Special Importance) Act on the final products, and no part of the credit allowed shall be refunded in cash or by cheque.

4. The provisions of this notification shall apply only to those inputs which have been received directly by the manufacturer of the final products from the factory of the manufacturer of the said inputs under the cover of an invoice declaring that the appropriate duty of excise has been paid on such inputs under the provisions of rule 15 of the Central Excise (No. 2) Rules, 2001 read with the notification issued thereunder.

5. This notification shall come into effect on and from the 1st day of July, 2001.

(G.D.Lohani)

Under Secretary to the Government of India

F.No. 357/9/2001-TRU