Government of IndiaMinistry of Finance Budget 97-98




Excise Notification

No. 7/97 Central Excise

NOTIFICATION                       New Delhi, the 1st March,1997
No.7/97-CENTRAL EXCISE             10 Phalguna, 1918 (Saka)

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 exempts
clearances,  specified in column (2) of the  Table  below,  for
home consumption, of the excisable goods  of  the   description
specified   in  the  Annexure appended to this     notification
(hereinafter  referred to as Othe specified  goodsO),  from  so
much  of  the  duty  of excise leviable      thereon  which  is
specified in the Schedule to the Central Excise Tariff Act 1985
(5 of 1986), as is in excess    of the amount calculated at the
rate  specified  in column (3) of the said Table  against  such
clearances.

   
                            T A B L E
----------------------------------------------------------------   
S.N              Clearances                    Rate
  
(1)                  (2)                        (3)
----------------------------------------------------------------                                          
1.   First  clearances upto an aggregate        Nil
     value  not  exceeding rupees thirty
     lakhs  made on or after 1st day  of
     April in a financial year.
     
2.   Clearances  not  exceeding   rupees  Three per cent.
     twenty  lakhs immediately following  ad valorem
     the  clearances  specified  against
     S.No. 1 above.
     
3.   Clearances  not  exceeding   rupees  Five  per cent.
     fifty  lakhs immediately  following  ad valorem
     the  clearances  specified  against
     S.No.2 above.
----------------------------------------------------------------
   
2.    The exemption contained in this notification shall  apply
only subject to the following
conditions, namely:-

(i)  A  manufacturer has the option to not avail the  exemption
under  this  notification and to pay the  appropriate  duty  of
excise  leviable,  under the Schedule  to  the  Central  Excise
Tariff  Act, 1985 (5 of 1986) read with any notification issued
under  sub-section (1) of section 5A of the said Central Excise
Act,   but for the exemption contained in paragraph 1, and such
option  once exercised in a financial year cannot be  withdrawn
in the same financial year under any circumstances.



(ii)The manufacturer does not avail credit of duty  (under rule
57A  of the Central Excise Rules, 1944) paid on inputs used  in
or  for  the manufacture of the specified goods, the  aggregate
value  of first clearances of which does not exceed rupees  one
hundred lakhs in the relevant financial year.

(iii)The  aggregate value of clearances of all excisable  goods
for home consumption (including clearances for export to Bhutan
or Nepal) by a manufacturer from one or more factories, or from
a  factory  by  one  or more manufacturers,  has  not  exceeded
rupees three hundred  lakhs in the preceding financial year:

  Provided  that for the purpose of determining  the  aggregate
value  of  clearances, the following clearances  shall  not  be
taken into account:-
   
   (a)  any 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)  any clearances bearing the brand name or trade name  of
   another person, which are ineligible for the grant of   this
   exemption in terms of paragraph 3 below;
   (c) any 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.
   Such  clearances of specified goods used as inputs shall  be
   deemed  to  be exempt from  the whole of the duty of  excise
   leviable thereon;
   (d)  any  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.
   
(iv)  Where a manufacturer clears the specified goods from  one
or  more  factories, the exemption in his case shall apply  for
the  total  value of clearances mentioned against each  of  the
serial  numbers in the said table and not separately  for  each
factory.

  (v)  Where  the specified goods are cleared by  one  or  more
manufacturers from a factory the exemption shall apply for  the
total  value of clearances mentioned against each of the serial
numbers  in  the  said  Table,  and  not  separately  for  each
manufacturer.

3.The  exemption   contained  in this  notification  shall  not
apply  to  goods  bearing a brand name or trade  name,  whether
registered  or not, of another person, except in the  following
cases :-
   
   (a)  where  the  specified goods, being  in  the  nature  of
   components  or  parts  of  any  machinery  or  equipment  or
   appliances,  are cleared for use as original  equipment   in
   the  manufacture  of  the  said machinery  or  equipment  or
   apliances by following the procedure laid down in Chapter  X
   of  the  Central  Excise Rules, 1944.  Manufacturers,  whose
   aggregate  value  of clearances of the specified  goods  for
   use  as  original  equipment does not exceed  rupees  thirty
   lakhs   in  a  financial  year,  may  submit  a  declaration
   regarding  such use instead of following the procedure  laid
   down in Chapter X of the said Rules;
   (b)  where the goods bear a brand name or trade name of  the
   Khadi  and  Village Industries Commission or  of  the  State
   Khadi  and  Village  Industry Board or  the  National  Small
   Industries   Corporation  or  the  State  Small   Industries
   Development  Corporation  or  the  State  Small   Industries
   Corporation;
   
4. Explanation.- For the purposes of this  notification,-
   
   (a) "brand name" or "trade name" shall mean a brand name  or
   trade  name,  whether registered or not, that is  to  say  a
   name  or  a mark, such as symbol, monogram, label, signature
   or  invented  word or writing which is used in  relation  to
   such  specified goods for the purpose of indicating,  or  so
   as  to  indicate a connection in the course of trade between
   such  specified  goods and some person using  such  name  or
   mark  with or without any indication of the identity of that
   person;
   
   (b)    where   the   specified  goods  manufactured   by   a
   manufacturer  bear  a  brand name  or  trade  name,  whether
   registered  or not, of another manufacturer or trader,  such
   specified  goods shall not, merely by reason of  that  fact,
   be   deemed   to  have  been  manufactured  by  such   other
   manufacturer or trader;
   
   (c)  "value"  means  the value as determined  in  accordance
   with  the provisions of section 4 of the Central Excise Act,
   1944 (1 of 1944), or the tariff value fixed under section  3
   of the said Act;
   
   (d)  in  the  determination of the value  of  clearances  of
   Chinaware  or  Porcelainware or both, where  a  manufacturer
   gets  Chinaware  or Porcelainware or both fired  in  a  kiln
   belonging  to or maintained by a Pottery Development  Centre
   run  by the Central Government or a State Government  or  by
   the  Khadi and Village Industries Commission, the  value  of
   the  Chinaware  or Porcelainware or both, belonging  to  the
   said  manufacturer and fired in such a kiln shall  be  taken
   into account.
   
   (e)  where the specified goods are manufactured in a factory
   belonging to or maintained by the Central Government  or  by
   a  State  Government, or by a State Industries  Corporation,
   or  by  a State Small Industries Corporation or by the Khadi
   and  Village  Industries  Commission,  then  the  value   of
   excisable  goods cleared from such factory  alone  shall  be
   taken into account.


   
5  This  notification shall come into force on the 1st  day  of
April,1997.

                           ANNEXURE

(1)  All goods falling under heading Nos. 51.06, 51.07,  51.08,
51.09,  51.10 (other than woven fabrics of wool), 51.11  (other
than woven fabrics of wool), 51.12, 52.04, 53.01, 53.02, 53.04,
53.05,  53.08  (other than goods falling under sub-heading  No.
5308.14),  53.11  (other than woven fabrics  of.ramie),  54.01,
55.05, 55.08, 56.01, 56.02, 56.03, 56.04, 56.05 (other than  of
man-made  filaments), 56.07(other than of jute), 56.08,  56.09,
58.03,  58.06, 58.07, 58.08, 59.01, 59.05, 59.06, 59.08, 59.09,
59.10,  59.11,  63.01  (other than blankets  of  wool),  63.02,
63.03,  63.04,  63.05,  63.06 or 63.07  and  sub  heading  Nos.
5105.30, 5105.40 and  6002.10 of the said Schedule.
(2)  Fabrics  of cotton or man made fibres falling  under  sub-
heading No 5802.51 or fabrics of cotton or man made fibres, not
subjected to any process, falling under heading Nos.  60.01  or
60.02.

(3)  Rubber  solution or vulcanizing solution; textile  fabrics
coated   or   laminated  with  preparations  of   low   density
polyethylene;  powered  cycles  and  powered  cycle   rickshaw;
(Opowered   cycleO   or   Opowered  cycle-rickshawO   means   a
mechanically   propelled  cycle  or,  as  the  case   may   be,
mechanically  propelled  cycle  rickshaw,  which  may  also  be
pedalled, if any necessity arises for so doing); side  cars  of
motor  cycles (including scooters); evaporative type of coolers
and parts of such coolers; cigarette lighters.
(4)   Chewing  tobacco  and  preparations  containing   chewing
tobacco,  other than those having a brand name,  falling  under
heading No. 24.04.
(5)  All other goods specified in the said Schedule other  than
the following, namely:-

   (i)      all      goods      falling      under      Chapter
   24,51,52,53,54,55,56,57,58,59,60,61 or 62;
   (ii)  all  goods  falling  under heading  Nos.21.06,  25.04,
   33.04,  33.05,  36.05,  37.01, 37.02, 40.05,  72.06,  72.07,
   72.18,  72.24,  84.71,  85.21, 85.28, 87.01,  87.02,  87.03,
   87.04, 87.05, 87.06, 87.11, 91.01, 91.02 or 96.13;
   (iii)   all  goods falling under sub-heading  Nos.  2101.10,
   2101.20,  3307.10,  3307.20,   3307.30,  3307.90,   3703.10,
   4006.10 or 9605.10;

   (iv)  sandal  wood  oil;  strips of  plastics  intended  for
   weaving  of fabrics or sacks; polyurethane foam and articles
   of  polyurethane  foam; plates, sheets  and  strip,  falling
   under  heading  No.  40.08,  for resoling  or  repairing  or
   retreading    rubber    tyres;   and    refrigerating    and
   airconditioning  appliances  and  machinery  and  parts  and
   accessories thereof falling under Chapter 84, 85 or 90;
   (v)  cold rolled stainless steel pattis/pattas falling under

   Chapter 72;
   (vi)  copper circles, whether or not trimmed, falling  under
   Chapter 74;
   (vii)   aluminium  circles, whether or not trimmed,  falling
   under Chapter 76.
  
  
                                              NAVNEET GOEL)
                      UNDER SECRETARY TO THE GOVERNMENT OF INDIA
   




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