TRADE NOTICE NO

TRADE NOTICE NO. 49 /2003

Dated:

3 .04.2003

Subject:- Changes relating to some of the budget proposals - Reg.

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Certain changes have been made in the Central Excise Rules and CENVAT Credit Rules w.e.f. 1^st April, 2003. The salient features of these changes are given below:-

(1) The exemption notifications No.8/2003-CE and 9/2003-CE have been amended so as to:

(a) exclude terry towels (Chapter 63) from the SSI exemptions scheme;

(b) provide that for determining the first clearance of Rs.1 crore, clearances of exempted goods shall not be taken into account;

(c) Provide that for determining the aggregate value of Rs.300 lakhs, clearances to EOUs, EPZs, etc. shall not be taken into account.

[Reference: Notification No. 30/2003 CE dated 1.4.03]

(2) Rule 8(3) of the Central Excise, 2002, has been amended to provide that the provisions relating to penalty for non-payment of the duty assessed shall be resorted to, only, if the duty and the interest are not paid within one month of the due date.

[Reference: Notification No. 27/2003 CE (N.T.) dated 1.4.03]

(3) As regards textiles, the following changes have been made:

(a) The concessional import duty of 5% has been extended to goods falling under heading No.51.01

(b) Rule 12B of the Central Excise Rules has been amended so as to extend the facility of job work to goods of Chapter 63 also.

[Reference: Notification No. 27/2003 CE (N.T.) dated 1.4.03]

(c) It has been provided that the credit of duty in respect of inputs as well as inputs contained in finished goods lying in stock on 31.3.2003 will be allowed if the declaration is made on or before 7^th April, 2003.The rates at which the credit would be allowed will be separately notified shortly.

[Reference: Notification No. 28/2003 CE (N.T.) dated 1.4.03]

(d) Notification No.35/2001-CE (NT) has been amended to provide that in respect of a manufacturer or trader for goods falling under Chapter 50 to 63, single registration may be obtained even for multiple premises, provided such premises are declared in the application form and all such premises are in the jurisdiction of the same Commissionerate.

[Reference: Notification No. 29/2003 CE (N.T.) dated 1.4.03]

(e) Rule 7 of the CENVAT Credit Rules, 2002, has been amended to provide for endorsement of the documents evidencing payment of duty by the textile trader provided the entire consignment covered under the said document is endorsed in full.

[Reference: Notification No. 28/2003 CE (N.T.) dated 1.4.03]

(f) Printed frames for use within the factory of production has been exempted from payment of excise duty.

(g) Duty on embroidered fabric falling under sub-heading 5805.11 and 5805.19 have been prescribed at 10%

[Reference: For (f) & (g) above, Notification No. 27/2003 CE (N.T.) dated 1.4.03]

(4) It is clarified that for valuation of readymade garments, the provisions of section 4 would apply in case the MRP is not required to be declared and is not declared.

Copies of the notifications 30 & 31/2003 CE and 27 to 29 CE (N.T.) all dated 01.04.2003 referred above are enclosed.

The contents of the Trade Notice may be brought to the notice of all concerned.

(Issued from file C.No. IV/16/2/2003 CX.. PoI )

(Authority: Letter F. No.B.3/4/2003-TRU dated 01.04.2003)

Sd/-

(V.V. HARIHARAN)

ADDITIONAL COMMISSIONER (PREV.)

As per Mailing List (Both Department & Trade)

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COPY OF NOTIFICATION No. 30 /2003-CE dated 01.04.2003

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), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby directs that each of the notifications of the Government of India, in the Ministry of Finance and Company Affairs (Department of Revenue), specified in column (2) of the Table below, shall be amended in the manner specified in the corresponding entry in column (3) of the said Table.

TABLE

S.No.

Notification No. and date

Amendments

(1)

(2)

(3)

8/2003-Central Excise,

dated the 1^st March, 2003

In the said notification,

(i) for paragraph 3, the following paragraph shall be substituted, namely:-

" 3. For the purposes of determining the first clearances upto an aggregate value not exceeding one hundred lakh rupees made on or after the 1st day of April in any financial year, mentioned against serial no.1 of the said Table, the following clearances shall not be taken into account, namely:-

(a) clearances, which are exempt from the whole of the excise duty leviable thereon (other than an exemption based on quantity or value of clearances) under any other notification or on which no excise duty is payable for any other reason;

(b) clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4;

(c) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods;

S.No.	Notification No. and date	Amendments
(1)	(2)	(3)
		(d) clearances of strips of plastics used within the factory of production for weaving of fabrics or for manufacture of sacks or bags made of polymers of ethylene or propylene. 3A. For the purposes of determining the aggregate value of clearances of all excisable goods for home consumption, mentioned in clause (vii) of paragraph 2 of this notification, the following clearances shall not be taken into account, namely:- (a) clearances of excisable goods without payment of duty- (i) to a unit in a free trade zone; or (ii) to a unit in a special economic zone; or (iii) to a hundred percent. export-oriented undertaking; or (iv) to a unit in an Electronic Hardware Technology Park or Software Technology Park; or (v) supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the erstwhile Ministry of Finance (Department of Revenue) No.108/95- Central Excise, dated the 28^th August, 1995, vide number GSR. 602 (E), dated the 28^th August, 1995. (b) clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4; (c) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods; (d) clearances of strips of plastics used within the factory of production for weaving of fabrics or for manufacture of sacks or bags made of polymers of ethylene or propylene. "; (ii) in the Annexure, after serial No. (xx) and entries relating thereto, the following serial No. and entry shall be inserted, namely:- (xx-i) terry towels falling under Chapter 63 of the said First Schedule;".
2.	9/2003-Central Excise, dated the 1^st March, 2003	In the said notification, (i) for paragraph 3, the following paragraph shall be substituted, namely:- " 3. For the purposes of determining the first clearances upto an aggregate value not exceeding one hundred lakh rupees made on or after the 1st day of April in any financial year, mentioned against serial no.1 of the said Table, the following clearances shall not be taken into account, namely:- (a) clearances, which are exempt from the whole of the excise duty leviable thereon (other than an exemption based on quantity or value of clearances) under any other notification or on which no excise duty is payable for any other reason; (b) clearances bearing the brand name or trade name of

S.No.

Notification No. and date

Amendments

(1)

(2)

(3)

another person, which are ineligible for the grant of this exemption in terms of paragraph 4;

(c) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods;

(d) clearances of strips of plastics used within the factory of production for weaving of fabrics or for manufacture of sacks or bags made of polymers of ethylene or propylene.

3A. For the purposes of determining the aggregate value of clearances of all excisable goods for home consumption, mentioned in clause (vii) of paragraph 2 of this notification, the following clearances shall not be taken into account, namely:-

(a) clearances of excisable goods without payment of duty

(i) to a unit in a free trade zone; or

(ii) to a unit in a special economic zone; or

(iii) to a hundred percent. export-oriented undertaking; or

(iv) to a unit in an Electronic Hardware Technology Park or Software Technology Park; or

(v) supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the erstwhile Ministry of Finance (Department of Revenue) No.108/95- Central Excise, dated the 28^th August, 1995, vide number GSR. 602 (E), dated the 28^th August, 1995.

(b) clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4;

(c) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods;

(d) clearances of strips of plastics used within the factory of production for weaving of fabrics or for manufacture of sacks or bags made of polymers of ethylene or propylene.";

(ii) in the Annexure, after serial No. (xx) and entries relating thereto, the following serial No. and entry shall be inserted, namely:-

"(xx-i) terry towels, falling under Chapter 63 of the said First Schedule;".

[F. No. B3/4/2003-TRU]

(Alok Shukla)

Deputy Secretary to the Government of India

Footnote:

(1) The principal notification No.8/2003-Central Excise, dated the 1^st March, 2003 was published in the Gazette of India vide number G.S.R. 138 (E), dated the 1^st March, 2003.

(2) The principal notification No.9/2003-Central Excise, dated the 1^st March, 2003 was published in the Gazette of India vide number G.S.R. 139 (E), dated the 1^st March, 2003.

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COPY OF NOTIFICATION No. 31 /2003-CE dated 01.04.2003

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 in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance and Company Affairs (Department of Revenue) No.7/2003-Central Excise, dated 1^st March, 2003,namely,-

In the said notification, in the Table after S.No.43 and the entries relating thereto, the following S.No. and entries shall be inserted, namely,-

(1)	(2)	(3)	(4)	(5)
44.	59	Printing frames intended for use within the factory of production	Nil	Nil
45.	5805.11 and 5805.19	All goods	10%	Nil

[F. No. B3/4/2003-TRU]

(Alok Shukla)

Deputy Secretary to Government of India

Footnote.- The notification No. 7/2003-Central Excise, dated the 1st March, 2003 was published in the Gazette of India vide number G.S.R. 137 (E), dated the 1st March, 2002..

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COPY OF NOTIFICATION No. 27 /2003-CE (N.T.) dated 01.04.2003

G.S.R. 152(E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 2002, namely:-

1. (1) These rules may be called the Central Excise (Fourth Amendment) Rules, 2003.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Central Excise Rules, 2002,-

(i) in rule 8, in sub-rule (3), in the second Proviso, for the words beginning with "without payment of duty" and ending with "shall follow", the following words shall be substituted, namely:-

"without payment of duty, and where such duty and interest are not paid within a period of one month from the due date, the consequences and the penalties as provided in these rules shall follow";

(ii) in rule 12B, for the words and figures "the yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments falling under Chapter 61 or 62 of First Schedule to the Tariff Act", wherever they occur, the words and figures "yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, readymade garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act" shall be substituted;

Footnote.- The principal rules were published in the Gazette of India vide notification No. 4/2002-Central Excise (N.T.), dated the 1^st March, 2002, vide number GSR 143 (E), dated the 1^st March, 2002, and were last amended vide notification No. 24 /2003-Central Excise (N.T.), dated the 25^th March, 2003, vide number GSR 242 (E), dated the 25^th March, 2003.

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COPY OF NOTIFICATION No. 28 /2003-CE (N.T.) dated 01.04.2003

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2002, namely:-

1. (1) These rules may be called the CENVAT Credit (Sixth Amendment) Rules, 2003.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the CENVAT Credit Rules, 2002,-

(i) the words and figures "the yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments falling under Chapter 61 or 62, of First Schedule to the Tariff Act", wherever they occur, the words and figures "yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, readymade garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act" shall be substituted.

(ii) in rule 7, in sub-rule (1), for clause (e), the following shall be substituted, namely,-

" (e) any of the documents referred to in clauses (a) to (d), issued in the name of a person ,

(a) involved in purchase and sale of yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act; or

(b) undertaking activities pertaining to manufacture of yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, readymade garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act, which is either fully exempt from duties of excise or are chargeable to ' Nil ' rate of duty or the said activity not amounting to manufacture,

being endorsed in full for the entire consignment covered under the said document by the said person to any other manufacturer, producer, first stage dealer or second stage dealer.

Explanation:- For the removal of doubt, it is clarified that the manufacturer, producer, first stage dealer or second stage dealer, as the case may be, in whose name such endorsement has been made, shall not be denied the credit merely on the grounds that the description of the goods mentioned in such an endorsed document has undergone a change on account of such an activity been undertaken by such person, as referred to in sub clause (ii) of this clause on the said goods.";

(iii) In rule 9A,-

(A) in sub-rule (3), -

(a) in clause (a), for the words, "shall be calculated on the basis of such rate", the words "shall be calculated on the basis of such rates or in such manner" shall be substituted;

(b) in clause (b),-

(A) in the opening paragraphbeginning, for the words " The credit of duty oninputs contained in fabrics lying in stock", the words "The credit of duty on inputs contained in fabrics or garments lying in stock" shall be substituted;

(B) in sub-cluse (ii), for the words and figures " dated 28.2.2003.", the words, figures and letters "dated the 28^th day of February, 2003; or " shall be substituted; and

" (iii) in all other cases, in such manner as may be notified by the Central Government in this behalf.

(B) After sub-rule (3), the following sub-rule shall be inserted, namely,-

"(4) The declaration referred to in this rule shall be made on or before the 7^th Day of April, 2003.";

Footnote.- The principal rules were published in the Gazette of India vide notification No. 5/2002-Central Excise (N.T.), dated the 1^st March, 2002, GSR 144 (E), dated the 1^st March, 2002, and were last amended vide notification No. 25 /2003-Central Excise (N.T.), dated the 25^th March, 2003, vide number GSR 243 (E), dated the 25^th March, 2003.

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COPY OF NOTIFICATION No. 29/2003-CE (N.T.) dated 01.04.2003

G.S.R. (E).- In exercise of the powers conferred by rule 9 of the Central Excise Rules, 2002, the Central Government hereby makes the following further amendments in the notification of the Government of India in the erstwhile Ministry of Finance (Department of Revenue) No. 35/2001-Central Excise (N.T.), dated the 26^th June, 2001, namely:-

In the said notification, in clause (2), the following proviso shall be added, namely,-

"Provided that if such person manufactures or carries on trade in goods falling under Chapter 50, 51,52,53, 54, 55, 56, 57, 58, 59 60, 61, 62 or 63 of the of First Schedule to the Central Excise Tariff Act, 1985 (1 of 1986), and has more than one premises requiring registration, he may obtain a single registration for all such premises, which fall within the jurisdiction of one Commissioner of Central Excise subject to condition that the such person, while making application in terms of clause (1) of this notification, declares the details of all such premises in the form specified in Annexure 1."

Footnote.- The principal notification No. 35/2001-Central Excise (N.T.), dated the 26^th June, 2001 was published in the Gazette of India vide number G.S.R.464 (E), dated the 26^th June, 2001 and was last amended vide notification No. 30/2002- Central Excise (N.T.), dated the 17th September, 2002, number G.S.R. 653 (E), dated the 17^th September, 2002.

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