Dated: .6.2006

OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE

CHENNAI – IV COMMISSIONERATE

M.H.U. COMPLEX, 692, ANNA SALAI, NANDANAM, CHENNAI - 600 035

Subject :           

Sub:  Central Excise – Communication of Board’s letters & Notifications - regarding

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          Copy of Board’s following letters forwarded for information and necessary action.

(Issued from file C.No.IV/16/201/06-Tech)

Circular No. 829/ 6/2006-CX
1^st May 2006

F.No. 209 /14/2005-CX-6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

Subject:- Export Warehousing- extension of facility in the taluka Ankleshwar in the district of Bharuch in the state of Gujarat.  -reg.

I am directed to refer to Board’s Circular No. 581/18/2001-CX dated 29^th June, 2001 which interalia, specifies conditions, procedures, class of exporters and places under sub-rule (2) of rule 20 of Central Excise Rules, 2002 for warehousing of excisable goods for the purpose of export.  In paragraph 2(2) of the said Circular, the Board has specified places where warehouses may be established. Now, representations have been received from the trade as well as field formations to include the taluka Ankleshwar in the district of Bharuch in the state of Gujarat in the list of places mentioned in the said Circular.

2.         The matter has been examined.  Board is of the view that extension of the facility of export warehousing to the taluka Ankleshwar in the District of Bharuch in the state of Gujarat.  would facilitate the trade and industry.  Accordingly, it is decided to amend paragraph 2(2) of the said Circular dated 29.6.2001 to include the taluka Ankleshwar in the district of Bharuch in the state of Gujarat.  The said paragraph shall now read as follows:

“(2)      Places: The warehouses may be established and registered in Ahmedabad, Bangalore, Kolkata, Chennai, Delhi, Hyderabad, Jaipur, Ludhiana, Mumbai, the districts of Pune and Raigad in the state of Maharashtra, the district of East Midnapore in the state of West Bengal, the district of Indore in the state of Madhya Pradesh and the taluka Ankleshwar in the district of Bharuch in the state of Gujarat.”

3.            Trade & field formations may please be informed suitably.

4.            Receipt of the Circular may be acknowledged.

5.            Hindi version will follow.

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Circular No.   827/4/2006-CX

12^th April 2006

F.No.6/36/2004-CX.1

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Subject: Deduction of Cost of Transportation for the Return Journey- reg.

1.      I am directed to refer to Board’s Circular   No. 643/34/2002 -CX dated 1.7.2002 clarifying certain points relating to Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.

2.      The clarification provided at Sl No. 2(b) of said circular stands revised as per the enclosed  table.

3.      Trade Notices may be issued for the benefit of the Trade.

4.      Hindi version will follow.

5.       Receipt of this circular may kindly be acknowledged.

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25^th April, 2006

Notification No. 10/2006-Central Excise (N.T.)

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit (Fifth Amendment) Rules, 2006.

(2) They shall come into force on the 1^st day of May, 2006.

2. In the CENVAT Credit Rules, 2004, in rule 9, in sub-rule (1), in clause (e), for the words, brackets and figures “sub-clauses (iii), (iv) and (v)”, the words, brackets and figures “sub-clauses (iii), (iv), (v) and (vii)” shall be substituted.

F. No. B1/4/2006-TRU(Part-I)

Note.-  The principal rules were published vide notification No. 23/2004-Central Excise (N.T.), dated the 10^th September, 2004, G.S.R.600 (E), dated the 10^th September, 2004 and was last amended vide notification No. 9/2006-Central Excise (N.T.), dated the 21^st April, 2006, G.S.R. 240(E), dated the 21^st April, 2006.

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29th May, 2006

Notification No. 11/2006-Central Excise (N.T.) 

G.S.R.    (E).- In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 4A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 2/2006-Central Excise (N.T.), dated the 1^st March, 2006, G.S.R. 113(E), dated the 1^st March, 2006, namely:- 

In the said notification, in the TABLE, after S.No.96 and the entries relating thereto, the following shall be added, namely:- 

2.      This notification shall come into force on the 1st day of June, 2006

 [F.No. B1/1/2006-TRU] 

Note.- The principal notification No. 2/2006-Central Excise (N.T.), dated the 1^st March, 2006, was published vide number G.S.R. 113(E), dated the 1^st March, 2006.

29th May, 2006

Notification No. 12/2006-Central Excise (N.T.)

G.S.R.    (E).- In exercise of the powers conferred by clause (b) of section 66 of the Finance Act, 2006 (21of 2006), the Central Government, hereby appoints the 1st day of June, 2006, as the date on which the provisions of the said clause shall come into force.

[F.No. B1/1/2006-TRU]

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June 1, 2006

Notification No. 13/2006-Central Excise (N.T).

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 Central Excise Rules, 2002, namely:-

(1)        These rules may be called the Central Excise (Amendment) Rules, 2006.

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

2.  In the Central Excise Rules, 2002, in rule 8, for sub-rule (3A), the following sub-rule, shall be substituted, namely:-

“(3A) If the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilizing the CENVAT credit  till the date the assessee pays the outstanding amount including interest thereon; and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow.”.

[F.No.224/01/2005-CX.6]

Note; The principal rules were published in the Gazette of India vide notification number. 4/2002-CE (NT), dated the 1^st March, 2002 [GSR 143(E), dated the 1^st March, 2002], and were last amended vide notification number 17/2005-CE (NT), dated 31^st March, 2005 vide [GSR196 (E), dated the 31^st March, 2005].

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9^th May, 2006.

Notification No. 30/2006-Central Excise

In exercise of the powers conferred by sub-section (1) of  section 5A of the Central Excise Act, 1944 (1 of 1944), read with section 91 and section 93 of the Finance (No.2) Act, 2004 (23 of 2004), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 32/2005-CENTRAL EXCISE, dated the 17^th August, 2005, number G.S.R. 537 (E), dated the 17^th August, 2005, namely:-

In the said notification, in paragraph 5, for the figures, letters and word “31^st July, 2006”, the figures, letters and word “31^st July, 2007 ” shall be substituted.

F.No.341/2/2005-TRU

Note. -  The principal notification was published in the Gazette of India, Extraordinary, vide number G.S.R. 537 (E), dated the 17^th August, 2005 and was last amended vide notification number 35/2005-Central Excise, dated the 29^th November, 2005, published in the Gazette of India, Extraordinary, vide number G.S.R. 697(E), dated the 29^th November, 2005.

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17th May, 2006

NOTIFICATION No.  31  /2006-CENTRAL EXCISE

G.S.R. 292  (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) and sub-section (3) of section 3 of Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the erstwhile Ministry of Finance and Company Affairs (Department of Revenue), No. 22/2003- Central Excise, dated the 31st March, 2003, G.S.R. 265 (E), dated the 31^st March, 2003,namely:-

In the said notification,-

(1)               in paragraph 2,-

(i)      in clause (i), after the proviso, the following proviso shall be inserted, namely:-

“ Provided further that the user industry may remove the capital goods temporarily within the country without payment of duty for the purposes of test, repair, calibration, refining and return thereof, after giving intimation to the said officer, subject to maintenance of proper accounts of removal and receipt of goods;”;

(ii)     clauses (ii) and (iv) shall be omitted;

(2)             after paragraph 2, the following paragraphs shall be inserted, namely:-

“(2a)            The user industry may supply or transfer goods processed, manufactured, produced or packaged to another unit in a Special Economic Zone (SEZ), or Software Technology Park (STP) unit or Electronic Hardware Technology Park ( EHTP) unit or to another Export Oriented Undertaking (EOU), as the case may be, for any of the purposes specified in clauses (a) to (d) of paragraph 1, after giving intimation to the said officer and subject to maintenance of proper accounts of removal and receipt of goods and following the rewarehousing procedure;

(2b)             The user industry may supply or transfer capital goods to another unit in a Special Economic Zone (SEZ) or Software Technology Park (STP) unit or Electronic Hardware Technology Park (EHTP) unit or to another Export Oriented Undertaking (EOU), as the case may be, for use within the unit after giving intimation to the said officer, subject to maintenance of proper accounts of removal and receipt of goods and following the rewarehousing procedure.”;

(3)    in paragraph 5, in condition (ii), for the words “ in case of user industry other than those which are in existence for less than two years, they” the words “the user industry” shall be substituted;

(4)  for paragraphs 10A and 10B, the following paragraphs shall be   substituted, namely:-

“10A. Notwithstanding anything contained in this notification,-

(i)      the exemption contained herein shall apply to spares and components up to 1.5 (one point five) percent. of Free on Board (FOB) value of manufactured articles exported by the user industry which manufactured such articles during the preceding year for the purpose of supply of such spares and components for after-sale-service during the warranty period of the exported articles to the same consignor or buyer to whom manufactured articles were exported subject to the condition that such supply is specifically stipulated in the relevant export contract;

(ii)     the exemption contained herein shall also apply to procurement and supply of promotional materials like brochures, literatures, pamphlets, hoardings, catalogues and posters of products for the purpose of export promotion activities, to the extent of 1.5 (one point five) percent. of Free on Board (FOB) value of the preceding year’s exports:

Provided that the export value of such spares, components and promotional materials shall not be taken into consideration for fulfilment of Net Foreign exchange Earnings (NFE) and for availing Domestic Sale Entitlement as specified in paragraph 6.8 of the Foreign Trade Policy.

10B.   Notwithstanding anything contained in this notification, if the said officer is satisfied that the unit, engaged in the manufacture of textiles and textile articles has left over textile fabric or textile material, he shall allow such unit to clear such left over textile fabric or textile material into Domestic Tariff Area on payment of duty on transaction value as if the goods have been manufactured in the unit:

Provided that such clearance shall be allowed only where the said officer certifies that the textile fabric or textile material proposed to be cleared are left over and such clearance do not exceed two percent. of value or  the quantity of consignments in the previous year to which such left over textile fabric or textile material relates, whichever is lower.”.

(F.No: DGEP/FTP/382/2006)

Note:

TThe principal notification No 22/2003-Central Excise, dated the 31^st March, 2003 was published vide number G.S.R 265 (E), dated the 31^st March, 2003 and was last amended vide notification No.28/2005-Central Excise, dated the 20^th May, 2005, G.S.R. 332 (E), dated the 20^th May, 2005.

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25th May, 2006

Notification No. 32/2006-Central Excise

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, on being satisfied that it is necessary in the public interest so to do,  hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 6/2006-Central Excise, dated the 1^st March, 2006, published in the Gazette of India, vide number G.S.R. 96 (E), dated the 1^st March, 2006, namely:-

In the said notification, in the Table, against S.No. 42, in column (3), in item (i), for the words, “Petrol driven vehicles”, the words “Petrol, Liquefied Petroleum Gases (LPG) or Compressed Natural Gas (CNG) driven vehicles” shall be substituted.

[F.No. 332/16/2006-TRU]

Note:- The principal notification No.6/2006-Central Excise, dated the 1^st March, 2006, published vide G.S.R. 96 (E) dated the 1^st March, 2006 was last amended vide notification No. 25/2006-Central Excise, dated the 20^th March, 2006 published vide G.S.R. 168 (E), dated the 20^th March, 2006.