Subject : Further changes pertaining to textile sector- Communicated.

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The following further changes have been made in the Central Excise Rules, 2003 and the CENVAT Credit Rules, 2003,-

The registered dealers of textiles and textile articles falling under Chapters 50 to 63, at his option, can take credit on his purchases and utilise the same to pay duty at the sale price of the said goods after packing etc. treating the clearance of such goods from his premises, as if they were manufactured by him.

[Reference: Notification No. 34/2003 Central Excise (Non Tariff) dated 10.4.03]

An independent weaver has been permitted to authorize another person to, maintain accounts, pay duty, and prepare invoice on his behalf as his agent.

[Reference: Notification No. 33/2003 Central Excise (Non Tariff) dated 10.4.03]

The last date for filing the stock declaration has been extended to 15th April, 2003.

[Reference: Notification No. 34/2003 Central Excise (Non Tariff) dated 10.4.03]

The traders have been allowed to take actual credit on the stock of processed fabrics lying in stock as on 31.03.2003.

[Reference: Notification No. 34/2003 Central Excise (Non Tariff) dated 10.4.03]

The rates of one time credit on the inputs lying in stock, in process or contained in stock as on 31.03.2003 has been notified under Rule 9A of the CENVAT Credit.

[Reference: Notification No. 35/2003 Central Excise (Non Tariff) dated 10.4.03]

Copies of the notifications 33 to 35/2003 Central Excise (Non Tariff) all dated 10.04.2003 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 Vol. II)

                  (Authority: Letter F. No.B.3/4/2003-TRU (Pt. I) dated 10.04.2003)

                                                                   Sd/-

                                                                     (V.V. HARIHARAN)

                   ADDITIONAL COMMISSIONER (PREV.)

To

As per Mailing List (Both Department & Trade)

COPY OF NOTIFICATION No. 33 /2003-Central Excise (Non Tariff) dated 10.04.2003

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 (Fifth 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, after rule 12 B, the following rule shall be inserted, namely,-

"12C. Maintenance of records and payment of duty by the independent weaver of unprocessed fabrics.- An independent weaver of unprocessed fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 of the First Schedule to the Tariff Act, may, at his option, authorize another person, on his behalf, to maintain accounts, pay duty, prepare invoice and comply with any of the provisions of these rules except that of rule 9:

Provided that primary responsibility to comply with the provisions of these rules shall lie with the said independent weaver and in case of short payment or non-payment of duty on such unprocessed fabrics, consequences and penalties shall apply both to the said independent weaver and his authorized agent.

Explanation.- Independent weaver means a weaver who works on his own, purchases the yarn himself and sells the grey fabrics manufactured by him. "

[F.No. B3/4/2003-TRU (Pt)]

(Alok Shukla)

Deputy Secretary to the Government of India

Footnote.- The principal rules were published in the Gazette of India vide notification No. 4/2002-Central Excise (N.T.), dated the 1st March, 2002, vide number GSR 143 (E), dated the 1st March, 2002, and were last amended vide notification No. 27/2003-Central Excise (N.T.), dated the 1st April, 2003, vide number GSR 291 (E), dated the 1st April, 2003.

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COPY OF NOTIFICATION No. 34 /2003-Central Excise (Non Tariff) dated 10.04.2003

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 (Seventh 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) in rule 3, after sub-rule (4), the following shall be inserted, namely,-

"(4A) Notwithstanding any thing contained in these rules,-

(a) a first or second stage dealer, dealing exclusively in goods falling under Chapter 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62 or 63 of the First Schedule to the Tariff Act, may, at his option, remove such goods, whether or not after undertaking activities such as packing, repacking, on payment of an amount equal to the duty of excise, which is leviable on such goods at the rate applicable on the date of removal and on the value determined for such goods under sub-section (2) of section 3 or section 4 of the Act, as the case may be. The provisions of the Central Excise Rules, 2002, in so far they relate to removal of goods on invoice, maintenance of accounts, filing of return, manner of payment or failure to pay such amount shall apply, as if such amount is a duty of excise liable to be paid by an assessee:

Provided that such option once exercised by the said dealer, shall not be withdrawn during the remaining part of the financial year;

(b) the first or second stage dealer of goods referred to in clause (a), who avails of the option referred to in said clause, may take credit of duties referred to in sub-rule (1) of Rule 3, paid on such goods for utilizing the same for payment of such amount, as referred to in clause (a);

(c) the amount paid under clause (a) shall be eligible as CENVAT credit as if it were a duty paid by a person who removes such goods under sub-rule (4A)."

(ii) in rule 9A,-

(A) in sub-rule (1), for the words and figures "A manufacturer, producer, first stage dealer or second stage dealer of yarn and unprocessed fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58, 59 or 60 of the First Schedule to the Tariff Act or a manufacturer of processed fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58, 59 or 60 of the First Schedule to the Tariff Act", the words and figures "A manufacturer, producer, first stage dealer or second stage dealer of yarn or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58, 59 or 60 of the First Schedule to the Tariff Act" shall be substituted;

(B) in sub-rule (4), for the figures and words "7th Day of April, 2003", the figures and words "15th day of April, 2003" shall be substituted.

[F.No. B3/4/2003-TRU (Pt-1)]

(Alok Shukla)

Deputy Secretary to the Government of India

Footnote.- The principal rules were published in the Gazette of India vide notification No. 5/2002-Central Excise (N.T.), dated the 1st March, 2002, vide number GSR 144 (E), dated the 1st March, 2002, and were last amended vide notification No. 28 /2003-Central Excise (N.T.), dated the 1st April, 2003, vide number GSR 292 (E), dated the 1st April, 2003.

COPY OF NOTIFICATION No. 35 /2003-Central Excise (Non Tariff) dated 10.04.2003

In exercise of the powers conferred by sub-rule (3) of rule 9A of the Central Excise Rules, 2002, the Central Government, hereby declares, for the purposes of the said rule, the amount of credit of duty, as specified in column (3) of the table below, on inputs lying in stock or in process or on inputs contained in finished goods lying in stock, as specified in the corresponding entry in column (2) of the said Table, namely:-

TABLE

Explanation 1.- For the purposes of this notification, Deemed value shall be calculated in the following manner:

Deemed value= Declared value multiplied by 95

[ 100 + rate of duty];

Explanation 2.- For the purposes of this notification, rate of duty shall mean the rate of duty leviable under the Central Excise Tariff Act, 1985 (5 of 1986), the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), as the case may be, read with any notification, as on the 1^st day of April, 2003;

Explanation 3.- For the purposes of this notification, composite mill 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.

 [F.No. B3/4/2003-TRU(Pt)]

(Alok Shukla)

Deputy Secretary to the Government of India

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