This Gazette may contains Multiple Subjects

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 337] NEW DELHI, THURSDAY, JUNE 28, 2001/ASADHA 7, 1923

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(Department of Revenue)

NOTIFICATION

New Delhi, the 28th June, 2001

No. 32/2001-CENTRAL EXCISE

G.S.R 490(E).— in exercise of the powers conferred by rule 15 of the Central Excise (No. 2) Rules, 2001, (hereinafter referred to as "the said Rules") the Central Government, hereby, specifies the processed textile fabrics falling under heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07, 55.11, 55.12, 55.13 or 55.14, or processed textile fabrics of cotton or man-made fibres, falling under heading Nos. or sub-heading Nos. 58.01, 58.02, 5806.10, 5806.40, 6001.12, 6001.22, 6001.92, 6002.20, 6002.30, 6002.43, or 6002.93 (hereinafter in this section referred to as the "said goods") of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), manufactured or produced by an independent textile processor exclusively with the aid of a hot- air stenter (hereinafter referred to as "independent textile processor"), and notifies the rate of excise duty as-

(a) in the case of a processing factory whose average value of processed fabric •" upto and including Rs. 30 per sq. mtr., Rs. 2.5 lakhs per chamber per stentor per month; and

(b) in the case of a processing factory whose average value of processed fabric exceeds Rs. 30 per sq. mtr., Rs. 3 lakhs per chamber per stentor per month,

installed in the processing factory, irrespective of whether such stentor or chamber is in use or not, or is in working condition or not.

2. For the purpose of payment of duty of excise,-

(i) in the case of a processing factory, existing as on 1st May, 2001, of an independent textile processor, the number of chambers of the hot air stentor installed in such processing factory as on 1st March, 2001 or 1st May, 2001, whichever is higher , shall be taken into account;

, (ii) in the case of new processing factory coming into existence after 1st May, 2001, the number of chambers of the hot air stentor installed in such processing factory as on the date the application was made under rule 96ZNA of Central Excise Rules, 1944, and if not, then as on the date the application under paragraph 7 of this notification has been made, as the case may be, shall be taken into account,

subject to the other provisions contained hereinafter.

3. The average value of the said goods (per square meter) for the factory of the independent textile processor shall be arrived at by dividing the total value of the said goods cleared from the ^oLf/Glfc*⁰/ —Z said factory in the immediately preceding financial year by the total quantity of the Said goods cleared during that preceding financial year:

Provided that where the said goods are manufactured or produced by a new unit or a closed unit of such factory for which the average value as specified abovd danttot be calculated, the average value of such goods shall be the average value declared by the independent textile processor at the time of making the application under rule 96ZNA of the Central Excise Rules, 1944 or under this notification; but the amount of duty payable on the said goods shall be re- worked at the end of the financial year on the basis of actual average value of the said goods manufactured or produced in that financial year.

4. The duty levied and collected on the said goods shall be the aggregate of the duty leviable under the Central Excise Act, 1944 (lof 1944) and the Additional Duties of Excise (Goods of Special Importance) Act. 1957 (58 of 1957) and shall be apportioned in the ratio of 1:1 between the duty leviable under both the aforesaid Acts.

5. In case the independent textile processor proposes to make any change in the installed machinery or any part thereof which tends to change the number of chambers in the hot-air stenters installed in his factory, he shall intimate^ about the proposed change, to the Commissioner of Central Excise in writing, with a copy to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the Case may be, one month in advance of such proposed change, and shall obtain the written approval of the Commissioner of Central Excise before making such change, whereafter the Commissioner of Central Excise shall determine the date from which the change in the number of chambers shall be deemed to be effective:

Provided that where any change in the installed machinery or any part thereof during a financial year results in the reduction in the number of chambers in a hot-air stentor or in the number of hot-air stentors, installed in the processing factory, no account of such reduction shall be taken into account for computing the duty payable under this notlficatldn during that financial year and the duty of excise shall be payable during that financial year as if ho such reduction in the number of chambers or hot air stentors had taken placd

6. For the purposes of this notification, -

(a) a chamber (of a hot-air stenter), having a rail length of ilptb 3.05 meter oh each side, installed in the factory of the independent textile processor shall be construed as one chamber and any fraction exceeding such rail length of any such chamber shall be computed on a pro rata basis;

(b) a float drying machihe or any other equipment, except the galleries, of a length 3.05 meters installed in or attached to a stenter for aiding the process of heat-setting or drying of the fabrics shall be deemed to be one chamber of a stenter and any fraction of such length shall be computed on a pro rata basis.

7. (1) The independent textile processor, who is engaged exclusively in ftie manufacture or production of the said goods, shall make an application prior to the commencement of commercial production, in the form specified in the APPENDIX to this notification, to the Commissioner of Central Excise for the purpose of availing of the special procedure for payment of excise duty as contained in this notification. The Commissioner of Central Excise, on such application being made, shall grant permission, subject to such conditions and limitations as laid Jl_ down in this notification, so .as to cover the period commencing from the date of making the application and ending on the 31st March, 2002. Pending grant of such permission by the Commissioner of Central Excise, the independent textile processor may avail the provisions of this notification on a provisional basis. But if such application is rejected by the Commissioner of Central Excise, then the independent textile processor shall not be eligible to avail of the provisions of this notification from the date of making the application and shall discharge the duty liability as per the provisions contained elsewhere than in this notification and the duty, if any, paid under the provisions of this notification, shall be adjusted against the duty payable on such goods.

Explanation I.-For the purposes of this notification, " independent textile processor" means a manufacturer who undertakes bleaching, dyeing or printing or any one or more of these processes with the aid of power or steam and who also has the facility in his factory (including plant and equipment) for carrying out heat setting or drying, with the aid of power or steam exclusively in a hot air stentor and who has no proprietory interest in any factory primarily and substantially engaged in the spinning of yarn or weaving or knitting of fabrics, on or after the 1st day of May, 2001.

Explanation Il.-For the removal of doubt, it is hereby declared that the provisions of this notification shall not apply to an independent processor who carries out heat setting or drying with the aid of an open-air stenter installed in his factory.

(2) Notwithstanding anything contained in sub-paragraph (1), in respwct of a processing factory existing as on 1st May, 2001, the application made by an independent textile processor, on or before the 20th May, 2001, to the Commissioner of Central Excise under sub-rule (2) of rale 96ZNA for availing the special provisions contained in section E-XA of the Central Excise Rules, 1944, for the period on and from 1st May, 2001 to 31st March, 2002, .stall be deemed to be an application made under sub-paragraph (1). If such application had bj$n granted by the Commissioner of Central Excise on a date prior to 1st day of July, 2001, the same shall be deemed to have been granted under sub-paragraph (1), subject to all the conditions and limitations as laid down in this notification. Otherwise, the Commissioner shall dispose of the application as if it is an application made under sub-paragraph (1).

Explanation.- For the removal of doubts, it is hereby declared that a processing factory, of an independent textile processor, existing on 1st May, 2001 and in respect of which no application was made under rule 96ZNA of the Central Excise Rules, 1944, on or before 20th May, 2001, shall not be eligible to avail of the benefit of this notification.

Provided further that an application made prior to the commencement of commercial production by an independent textile processor, commencing production for the first time in a new processing factory coming into existence after the 1st May, 2001 but prior to 1st July, 2001, under the proviso to sub-rale (2) of rule 96ZNA of the Central Excise Rules, 1944, so as to cover the period upto the 31st March, 2002, shall also be deemed to be an application under sub- paragraph (1) and shall be disposed of under that sub-paragraph. If such application had been granted by the Commissioner of Central Excise under rule 96ZNA of the Central Excise Rules, 1944, so as to cover the period upto 3Ist March, 2002, such disposal shall be deemed to be the disposal of the application under sub-paragraph (1), subject to all the conditions and limitations as laid down in this notification.

8. (1) The original value of the investment in the plant and machinery installed in the factory of the independent textile processor of the said goods, as on the Ist March, 2001 or on |PARTI1—SHP.3(J)1 U. THE GAZETTE OF INDIA : EXTRAORDINARY

the 1st of May, 2001, whichever is higher, for a factory existing as on 1st May, 2001, of the independent textile processor or on the date of making the application under rule 96 ZNA of the Central Excise Rules, 1944 or paragraph 7 of this notification, as the case may be, in the case of an independent textile processor commencing production for the first time in a new factory coming into existence after the 1st of May, 2001, shall not exceed three crore rupees, irrespective of whether such plant and machinery is in use or not, or in working condition or not, and the independent textile processor shall declare the original value of investment in such plant and machinery installed in his factory, on the dates mentioned above, in the prescribed format duly certified by a Chartered Accountant or Cost Accountant. The Commissioner of Central Excise may require any such documentary evidence as he considers appropriate in respect of such original value before granting the application.

(2) If any additional plant and machinery is installed by the independent textile processor at any point of time, he shall intimate the same to the Commissioner of Central Excise within seven days of such installation and the original value of investment in plant and machinery together with the original value of investment in such additional plant and machinery shall not exceed three crore rupees. Where such original value of investment exceeds the limit of three crore rupees, the provisions of this notification shall not apply from the first day of the month in which such investment exceeded the said limit of three crore rupees.

(3) The independent textile processor shall not remove any unstentored textile fabrics from his factory.

(4) An independent textile processor of the said goods who has made the application under paragraph 7 to pay the duty of excise in accordance with this notification shall not be allowed any abatement on account of closure of factory, except as provided under paragraph 10.

(5) The independent textile processor opting for the provisions of this notification shall not be eligible to avail of any credit of duty paid on inputs or capital goods under the CENVAT Credit Rules, 2001.

(6) The provisions of this notification shall apply to the said goods which are manufactured or produced on or after the 1st day of May, 2001.

(7) Nothing contained in this notification shall apply to-

(a) the said goods which are manufactured or produced prior to the 1st day of May, 2001 and cleared on or after that date;

(b) a composite mill, that is, a manufacturer or processor, 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 factory and includes a multi-locational composite mill, that is, 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; or

(c) fabrics other than the said goods produced or manufactured by the independent textile processor.

J3 9. (1) An independent textile processor of the said goods whose application has been granted under paragraph 7 shall pay an amount of duty calculated at the rate specified in this notification and subject to the conditions and limitations as laid down in this notification, such payment shall be a full discharge of his liability for duty leviable on his production of the said goods during the period for which the said amount of duty has been paid:

Provided that if there is any alteration in the rates of duty, the amount of duty payable shall be recalculated on the basis of the revised rates, from the date of alteration and liability for duty leviable on the production of the said goods from that date shall not be discharged unless the differential duty is paid, and where the amount of duty so recalculated, is less than the amount paid, the balance shall be refunded to the manufacturer:

(2) The amount of duty payable under sub-paragraph (1) shall be debited by the independent textile processor in the account current required to be maintained by him under the said Rules.

(3) Fifty per cent, of the duty payable for a calendar month under sub-paragraph (1) shall be paid by the 20th of that month and the remaining amount shall be paid by the 5th of the immediately succeeding month.

(4) The independent textile processor shall maintain records, and file returns, pertaining to production or manufacture, clearance, storage, delivery or disposal of goods, including the materials received for or consumed in the manufacture of the said goods or other goods, the goods and materials in stock with him and the duty paid by him, as prescribed under the said Rules or any notification issued thereunder:

Provided that the independent textile processor of the said goods shall further declare in the monthly return required to be filed under the said Rules or notification issued thereunder that the original value of investment in the plant and machinery installed in his factory for the month to which the said return pertains has not exceeded three crore rupees.

(5) If an independent textile processor fails to pay the amount of duty under sub- paragraph (1) or any part thereof by the date specified in sub-paragraph (3), he shall be liable to,- (i) pay the outstanding amount of duty along with interest at the rate of twenty-four per cent, per annum calculated for the outstanding period on the outstanding amount; and (ii) a penalty equal to the amount of duty outstanding from him for a month payable by the 5th of the succeeding month or rupees five thousand, whichever is greater.

(6) If an independent textile processor removes the said goods without complying with any of the requirements contained in sub-paragraph (4), then, the said goods shall be liable to confiscation and the independent textile processor shall be liable to a penalty not exceeding ten thousand rupees.

10. (1) Where an independent textile processor does not produce or manufacture the said goods during any continuous period of not less than fifteen days, he may claim abatement of the duty payable by him under this notification, and such abatement shall be allowed by an order passed by the Joint Commissioner of Central Excise or the Additional Commissioner of Central Excise, as the case may be, of such amount as may be specified in such order, subject to fulfilment of the following conditions, namely:-

14 THE GAZETTE OF INDIA: EXTRAORDINARY [PART II—SEC, 3(i)] (a) the abatement shall be applicable only on complete closure of the factory and not on closure of any one or more hot-air stenters;

(b) during the period of closure no manufacturing activity, whatsoever, including bleaching, dyeing or printing, in respect of the said goods shall be undertaken and no removal of the said goods shall be effected by the independent textile processor;

(c) the independent textile processor shall inform, in writing, about the closure of the factory to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, at least three days prior to the date of closure;

(d) the stenter or stenters shall be sealed in such manner as may be prescribed by the Commissioner of Central Excise;

(e) the independent textile processor, when he starts production again, shall inform in writing about the date of starting of production to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, at least three days prior to the date of starting production, and get the seal opened in such manner as may be specified by the Commissioner of Central Excise before recommencing production;

(f) the independent textile processor shall, while sending information under condition (e), declare that his factory remained closed for a continuous period starting from the hour and date to the hour and date, such hours and dates to be specified in the declaration;

(g) when the claim for abatement by the independent textile processor is for a period of less than one month, he shall be required to pay the duty, as applicable, for the entire period of the month and may subsequently seek such claim after payment of such duty;

(h) where the claim for abatement by the independent textile processor is for a period of one month or more, he shall not be required to pay the duty for that period in advance;

(i) if the claim for abatement by the independent textile processor has been disallowed by the Joint Commissioner of Central Excise or the Additional Commissioner of Central Excise, as the case may be, by a written order made in this regard, the independent textile processor shall pay the amount of duty, and interest if any applicable, prior to getting the stenter or stenters sealed under condition (d ) reopened for resuming production;

Provided that the Joint Commissioner of Central Excise or the Additional Commissioner of Central Excise, as the case may be, where he is satisfied that the delay in giving information under condition (c) was caused due to unavoidable circumstances, may, for reasons to be recorded in writing, condone such delay.

11. This notification shall come into force on the 1 st day of July, 2001.

[F.No.357/8/2001-TRU]

T.RRUSTAGUt. Secy.

APPENDIX

Original

Duplicate

Triplicate

FORM A.S.P.

Application for permission to avail of the special procedure relating to processed textile fabrics

Name of factory/factories Address

I/We manufacture(s) of processed textile fabrics residing at and hoider (s) of Central Excise Licence No dated hereby apply to avail myself/ourselves, during the period beginning with 200 and ending with 200....of the special procedure for payment of excise duty contained in the notification issued under rule 15 of the Central Excise Rules, 2001, in respect of the production or manufacture of processed textile fabrics with the aid of power or steam at my/our above-mentioned factory/factories.

2. I/We declare below the particulars of processed textile fabrics produced or manufactured in my/our above-mentioned factory:-

S. No.

Description of processed textile fabrics

Classification of processed textile fabrics (I)

(2)

(3)

3. I/We declare below the particulars of each of the plant and machinery installed in my/our above-mentioned factory:-

1 5

4. 1/We declare below the particulars of each hot-air stenter installed in my/our above-mentioned factory:-

•

5. I/We hereby declare that the particulars furnished above are true and correct in all respects. In case any of the particulars are found to be ? o v

/

< s

untrue/incorrect, I/We undertake to pay any additional amount of excise duty on the processed textile fabrics manufactured by me/us as per the provisions of the Central Excise Act, 1944 (1 of 1944) or the rules or notifications issued thereunder.

/

"

/

^

6. I/We further declare that the original value of investment made in the above-mentioned factory is Rs .. in support of which the / -

3

following documents and the Certificate of the Chartered Accountant/Cost Accountant is enclosed herewith.

7. I/We hereby agree to abide by the terms, conditions and limitations of the said Rule 15 or any notification issued thereunder throughout the said period.

Signature of manufacturer(s) or his/their authorised agent(s).

Place: Date:

COUNTERSIGNED

of Central Excise

Range Circle Place: Date:

Permission granted for the financial year

the period

beginning with Place- D a t e:

and ending with

Commissioner of Central Excise....

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THE GAZETTE OF INDIA: LA vlA i

,

NOTIFICATION

New Delhi, the 28th June, 2001

No. 33/2001-CENTRAL EXCISE

v >• In exercise of the powers conferred by rule 15 of the Central Excise (No. 2) Rules, 2001, the Central Government hereby specifies embroidery in the piece, in strips or in motifs on cotton fabrics, man made fabrics, silk fabrics or woollen fabrics, in respect of which an assessee shall have the option to pay the duty of excise on the basis of meter length of the machine per shift and fixes a rate of duty of Rs. 45 per meter length of the machine per shift, for embroidery machines utilised for manufacture of the said goods:

Provided that no credit of duty paid on inputs used in the manufacture of the embroidery and capital goods used within the factory of manufacture of such embroidery shall be taken under the CENVAT Credit Rules, 2001:

Provided further that the procedure mentioned hereinafter is followed. Explanation.- In this notification-

la) "meter length", in relation to a machine, means the distance between the points provided for the first needle and the last needle of only one roller of such machine;

(b) "shift" means a period not exceeding eight hours working in a day, exclusive of rest interval, provided the work of the same kind is carried out by the same set of workers.

2. Application to avail of special procedure.- (1) A manufacturer of embroidery in the piece, in strips or in motifs (hereinafter referred to as "the embroidery") shall make an application in the form specified in Appendix I to this notification as Appendix-I to the Superintendent of Central Excise in this behalf.

(2) The application shall be made so as to cover a period of not less than six consecutive calendar months, but may be granted for a shorter period, for reasons to be recorded in writing by the Assistant Commissioner or the Deputy Commissioner, as the case may be.

(3) If, at any time during such period, the manufacturer does not desire to avail himself of the special provisions contained in this notification, he shall give a notice in writing to the Assistant Commissioner or the Deputy Commissioner in charge of the factory of his intention at least one week in advance. Once the manufacturer has ceased to avail himself of such special provisions, from any date, he shall be precluded from availing himself of such provisions for a period of six months from that date.

(4) If the manufacturer desires to avail himself of the special procedures contained herein on the expiry of the period for which his application was granted, he shall, not later than a week before such expiry, make an application to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Centra! Excise under sub paragraph (1); and on his failure to do so, he shall, except as provided herein, be precluded from availing himself of such procedures for a period of six months from the date of such expiry.

(5) Notwithstanding anything contained in sub-paragraph (1), an application made by a manufacturer before the commencement of this notification under sub-rule( 1) of rule 96ZH of the Central Excise Rules, 1944, shall be deemed to be an application made under sub-paragraph (1) and the same shall be deemed to have been granted under sub-paragraph (1) and where such application has not been granted, the Assistant 23 Commissioner or the Deputy Commissioner shall dispose of the same as if it is an application under sub- paragraph (1).

3. Discharge of liability for duty on payment of certain sum.- (1) If a manufacturer whose application has been granted under paragraph 2 pays before the commencement of any shift a sum calculated according to such rate, in the manner and subject to the conditions herein laid down, such payment shall be in full discharge of his liability for the duty leviable on his production of the embroidery during the said shift:

Provided that if there is revision in the rate of duty, the sum payable shall be recalculated on the basis of the revised rates from the date of revision and liability for duty leviable on the production of the embroidery from that date shall not be discharged unless the differential duty is paid, and in case the amount of duty so recalculated is less than the sum paid, the balance shall be refunded to the manufacturer:

(2) The sum payable under sub-paragraph (1) shall be calculated by application of the appropriate rate to the meter length of each of the machines intended to be employed by the manufacturer during the shift.

(3) Such sum shall be paid by such manufacturer by debit in the account-current maintained under these provisions before commencement of the shift.

(4) If the payment is not made in the manner and within the time limit herein laid down, the manufacturer shall, unless otherwise directed by the Assistant Commissioner or the Deputy Commissioner of Central Excise , and in exceptional circumstances, be liable to pay duty on his entire production of the embroidery during the shift or shifts, in respect of which the payment was to be made, at the rate specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986):

Provided that where the period of delay is upto five days, the provisions of this sub-paragraph shall have effect as if for the expression "Assistant Commissioner or the Deputy Commissioner of Central Excise" , the expression " Superintendent of Central Excise" has been substituted.

4. Manufacturer's declaration and accounts.- (1) The manufacturer shall keep account-current with the Commissioner, of the sums payable under paragraph 3, and such account-current shall be maintained in triplicate by using indelible pencil and double sided carbon and the assessee shall periodically make credit in such account-current by cash payment into the treasury so as to keep sufficient balance in such account-current to cover the sums payable under paragraph 3.

(2) Such manufacturer shall also-

(a) maintain a Daily Stock Account in the form specified in Appendix II to this notification;

(b) intimate the Superintendent of Central Excise in writing of any change in the number, meter length and speed of the machines installed by him; and

(c) append to the monthly return in proper form prescribed under rule 12 of the Central Excise ( No. 2) Rules, 2001, two carbon copies of the Daily Stock Account duly signed.

5. Exemption from certain provisions etc.- (1) During the period in respect of which a manufacturer has been permitted to avail himself of the procedure of this notification, he shall be exempt from the operation of the provisions of rule 8 of the Central Excise (No. 2) Rules, 2001.

(2) Except in accordance with such terms, conditions and limitations as the Central Government may by notification specify in this behalf, no rebate of excise duty shall be paid under rule 18 of the said Central Excise Rules, in respect of any embroidery exported out of India out of the stock produced by such manufacturer during such period.

6. Power to condone failure to apply for special procedure.- Notwithstanding anything contained in this notification, the Additional Commissioner of Central Excise or the Joint Commissioner of j,

^ T HE GAZETTE OF INDIA: EXTRAORDINARY [ P A R T I I ^ ^^ Central Excise may, at his discretion and subject to such conditions as he may deem fit, apply the provisions contained in this notification to a manufacturer who has failed to avail himself of the special procedure, or to comply with any condition, laid down in this notification.

7 Confiscation and penalty.- If any manufacturer contravenes any provision of this notification in respect of any excisable goods, then all such goods shall be liable to confiscation, and the manufacturer shall be liable to penalty under rule 25 of the Central Excise (No. 2) Rules, 2001.

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

|F. No. 354/66/2001-TRUI

T.R.RUSTAGI.Jt. Secy.

Appendix-I

Form A S P I

Application for permission to avail of the special procedure relating to embroidery

Name of the factory/factories Address

I/We manufacturer(s) of embroidery processed at taluk/tehsil district And holders of Central Excise Registration No dated hereby apply to avail myself/ourselves during the calendar month/the period beginning with 20... and ending with 20 of the special procedure contained in respect of the manufacture of the embroidery specified under the notification issued under rule 15 of the Central Excise (No. 2) Rules, 2001.

2. I/We declare that the particulars of each embroidery machine installed by me/us

3, I/We hereby agree to abide by the terms and conditions of the said procedure throughout the said period. Place: Date:

Signature of manufacturers or his/their authorized ageiit(s).

Countersigned

.of Central Excise

Range Circle Place: Date:

Permission granted for calendar month/the period beginning with and ending with

Assistant Commissioner Deputy Commissioner of Central Excise Place: Date:

i

Append Lt-II Original Duplicate Triplicate Production register-cum-account current to be maintained by the the manufacturer of embroidery working under special procedure

1

.

, 20 Name and Address of the Manufacturer First Shift : From hours to hours Month Second Shift : From hours to hours Registration No. Third Shift : From hours to hours Account Current No.

2 5 26 _27 28 THE GAZETTE OF INDIA. EXTRAORDINARY [PART II—SEC.^J)!

29 30 THE GAZETTE OF INDIA: EXTRAORDINARY |PARTlI^-SBc,3(i)] 31 32 THE GAZETTE OF INDIA: EXTRAORDINARY PA .—. ... t

NOTIFICATION

New Delhi, the 28th June, 2001

No. 34/2001-CENTRAL EXCISE

G.S.R 492(E).— In e x c r c i se of th,- p o w e rs conferred by Rule 15 of the Central Excise (No.2) Rules, 2001, The Central Government hereby specifies the excisable goods viz. stainless steel pattis/pattas, falling under Chapter 72, or aluminium circles falling under Chapter 76 of the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986) subjected to the process of cold rolling with the aid of cold rolling machine in respect of which an assessee shall have an option to pay the duty of excise on the basis of cold rolling machine installed for cold rolling of these goods and fixes the following rate of duty per cold rolling machine, per month:-

(1) stainless steel pattis or pattas

Fifteen thousand rupees

(ii) aluminium circles produced from sheets manufactured on cold

rolling machines

(a) where the length of the roller is 30" or less Seven thousand five

Hundred rupees

(b) where the length of the roller is more than 30" Ten thousand rupees:

Provided that no credit of duty paid on any raw materials, component part or machinery or finished products used for cold rolling of stainless steel pattis/pattas, or aluminium circles under CENVAT Credit Rules, 2001 shall be taken:

Provided further that the procedure mentioned hereinafter is followed.

2. Application to avail special procedure.- (1) The manufacturer shall make an application in the form specified in Appendix-I to this notification to the Superintendent of Central Excise, as the case may be, for this purpose and the Superintendent, may grant permission for the period in respect of which the application has been made.

(2) The application shall be made so as to cover a period of not less than twelve consecutive calendar months, but permission may be granted for a shorter period for reasons to be recorded in writing, by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise.

(3) If at any time during such period the manufacturer fails to avail himself of the procedure contained in this notification, he shall, unless otherwise ordered by the Assistant Commissioner or the Deputy Commissioner, be precluded from availing himself of such procedure for a period of six months from the date of such failure.

(4) If the manufacturer desires to avail himself of the procedure contained in this notification on the expiry of the period for which his application was granted, he shall, before such expiry, make an application to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise as under sub- paragraph (1) and on his failure to do so, he shall, except as provided herein, be precluded from availing himself of such procedure for a period of six months from the date of such expiry.

(5) Notwithstanding anything contained in sub- paragraph (1), an application made by a manufacturer, before the commencement of this notification, under sub-rule (1) of rule 96ZA of the Central Excise Rules, 1944, shall be deemed to be an application made under sub- paragraph (1) and the same shall be deemed to have been granted under sub- paragraph (1) and where such application has not been granted, the Assistant Commissioner or the Deputy Commissioner shall dispose of the same as if it is an application under sub- paragraph (1).

3. Discharge of duty liability on payment of certain sum.- (1) A manufacturer whose application has been granted under paragraph 2 shall pay a sum calculated at the rate specified in this notification, subject to the conditions herein laid down, and such payment shall be in full discharge of his liability for duty leviable on his production of such cold re-rolled stainless pattas/pattis, or aluminium circles during the period for which the said sum has been paid:

Provided that if there is revision in the rate of duty, the sum payable shall be recalculated on the basis of the revised rate, from the date of revision and liability for duty leviable on the production of stainless steel partis/pattas, or aluminium circles from that date shall not be discharged unless the differential duty is paid and in case the amount of duty so recalculated is less than the sum paid, the balance shall be refunded to the manufacturer:

Provided further that when a manufacturer makes an application for the first time under paragraph 2 for availing of the procedure contained in this notification, the duty liability for the month in which the application is granted shall be calculated pro-rata on the basis of the total number of days in that month and the number of days remaining in the month from the date of such grant.

(2) The sum payable under sub-paragraph (1) shall be calculated by application of the appropriate rate to the maximum number of cold rolling machines installed by or on behalf of such manufacturer in one or more premises at any time during three calendar months immediately preceding the calendar month in which the application under paragraph 2 is made.

(3) The sum shall be tendered by the manufacturer along with the application.

4. Manufacturer's declaration and accounts.- (1) The manufacturer who has been granted permission under paragraph (2) above shall make an application in the form specified in Appendix II to this notification to the Superintendent in charge of the factory for permission to remove the stainless steel pattis/pattas, or aluminium circles from his premises during the ensuing month, declaring the maximum number of cold rolling machines installed by him or on his behalf, in one or more premises at any time during three calendar months immediately preceding the said calendar month in which such application is made.

(2) If such application is not made to the Superintendent of Central Excise within the time limit laid down in sub-paragraph (1), the manufacturer shall, unless, otherwise directed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, and in exceptional circumstances, be liable to pay duty on his entire production of stainless steel pattis/pattas, or aluminium circles during the month or part thereof in respect of which the application was to be made, at the rate prescribed in the First Schedules to the Central Excise Tariff Act, 1985 (5 of 1986) read with any relevant notification or notifications issued under sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944).

(3) The manufacturer shall also intimate the Superintendent of Central Excise in writing of any proposed change in the number of cold rolling machines installed by him or on his behalf, and obtain the written approval of such officer before making any such change.

Z°L//6, I hero/- 5

5. Exemption from certain provisions etc.- (1) During the period in respect of which any manufacturer has been permitted to avail himself of the procedure of this notification, he shall be exempt from the operation of rule 8 of the Central Excise (No. 2) Rules, 2001.

(2) Except in accordance with such terms and conditions as the Central Government may by notification specify in this behalf, no rebate of excise duty shall be paid under rule 18 of the said Central Excise Rules, in respect of any stainless steel pattis/pattas, or aluminium circles exported out of India, out of the stock produced by such manufacturer during such period.

6. Provisions regarding new factories and closed factories resuming production.- (1) In the case of a manufacturer who commences production for the first time or who recommences production after having ceased production for a continuous period of not less than three months, and who has been permitted by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise under paragraph 2 to avail of the procedure, the amount payable by him for the first month or part thereof, as the case may be, shall be provisionally calculated on the basis of his declaration of the maximum number of cold rolling machines that are or are likely to be installed by him or on his behalf during such period.

(2) At the expiry of the period, the amount payable shall be recalculated on the basis of the maximum number of cold rolling machines actually installed and if the initial payment falls short of the total liability so determined, the deficiency shall be recovered from the manufacturer and where the total liability is less than the initial deposit, the balance shall be refunded to the manufacturer.

7. Power to condone failure to apply for special procedure. - Notwithstanding anything contained in this notification, the Additional Commissioner of Central Excise or the Joint Commissioner of Central Excise may, at his discretion, for reasons to be recorded in writing, and subject to such conditions as he may deem fit, apply the provisions contained in this notification to a manufacturer who has failed to avail himself of the special procedure, or to comply with any condition laid down in this notification.

8. Provision regarding factories ceasing to work or reverting to the normal procedure.- Notwithstanding anything contained in this notification, where a manufacturer who had availed himself of the procedure contained in this notification ceases to work or reverts to the normal procedure, the duty payable by him in the month during which he has availed himself of the procedure shall be calculated on the basis of the maximum number of cold rolling machines installed during the last month in the manner prescribed in paragraph 6 and the amount already paid for the month in accordance with paragraph 3 shall be adjusted towards the duty so calculated and on such adjustment if there is any excess payment it shall be refunded to the manufacturer and any deficiency in duty shall be recovered from the manufacturer.

Explanation. - A manufacturer, who ceases to work his factory for one or two shifts only, shall not be deemed to have ceased to work within the meaning of this notification.

9. Confiscation and penalty.- If any manufacturer contravenes any provision of this notification in respect of any excisable goods, then all such goods shall be liable to confiscation, and the manufacturer shall be liable to penalty under rule 25 of the Central Excise (No. 2) Rules, 2001.

10. This notification shall come in to effect on and from the first day of July, 2001.

|F. No. 354/66/2001-TRU1

T. R. RUSTAGI, Jt. Secy J5

Appendlx-1

Form A S P II

Application for permission to avail of the special procedure relating to stainless steel patties orpattas or aluminium circles.

Name of the factory/factories Address

I/We manufacturers of stainless steel patties or pattas/aluminium circles processed without the aid of power or steam, residing at taluk/tehsil district....and holders of Central Excise Registration No dated hereby apply to avail myself/ourselves during the calendar month/the period beginning with 20... and ending with ....20.... of the special procedure in respect of the production or transactions in such stainless steel patties or pattas or aluminium circles without the aid of power or steam at my/our above mentioned factory/factories.

2. I/We declare that I/We had not at any time during the calendar year ending employed more than five workers and that I/we intend to employ workers in the factory during the calendar month next following.

3. I/we declare that I/We had not at any time during the calendar year ending employed more than five hand presses and that I/we intend to employ in the factory during the calendar month next .... hand presses.

4. I/We hereby agree to abide by the terms and conditions of the said procedure throughout the said period.

Place: Date:

Signature of manufacturers or his/their authorized agent(s).

Countersigned

of Central Excise

Range Circle Place: Date:

Permission granted for Calendat month/the period beginning with and ending with

Assistant Commissioner/Deputy Commissioner of Central Excise Place: Date:

Note: Delete the entries not applicable.

36 THE GAZETTE OF INDIA: EXTRAORDINARY [PART II—SEC.3(J)]

Appendix-II

Original

Duplicate

Triplicate

Quadruplicate

Application for removal of stainless steel patties/pattas manufactured under the special procedure

Name of the Factory Address

residing

Taluka/Tehsil District

1. I/We manufacturer(s) of stainless steel patties/pattas at and holders) of Central Excise Registration No dated...., having been permitted to avail myself/ourselves of the special procedure contained in the notification issued under rule 15 of Central Excise (No.2) Rules 2001, in respect of my/our production and transactions in such stainless steel patties/pattas at the above-mentioned factory/factoriesTiereby declare that I /we intend to instal and employ the cold tolling machines for the production of stainless steel patties/pattas during the year in the manner indicated below, and the total sum payable by me/us in terms of the provisions laid down in the notification in respect of the said period are stated hereunder:-

2. I/We tender herewith the sum of Rs (Rupees only). The balance will be paid by me/us in monthly instalments.

3. I/We hereby declare that the particulars furnished herein are true and complete to the best of my/our knowledge and belief.

4. I/We apply for leave to remove from the above mentioned premises during the period from to any stainless steel patties/pattas manufactured in the said premises during that period.

5. I/We understand that the permission accorded to me/us for the year is subject to my/our paying the balance amount as indicated in paragraph 2 above.

Place Date

Signature of manufacturer or his authorized agent.

To

The Superintendent of Central Excise

Range

r, Division J7

COUNTERSIGNED

Place Date

Superintendent of Central Excise Range Circle.

Statement of duty paid:

(a) For payment in cash at

Treasury State Bank of India Reserve Bank of India (To be filled in by the manufacturer or his authorised agent)

Name of person tendering payment

Particulars of payment

(2)

Amount(in words as well as in figures) (3)

(1)

Head of Account 038-Union Excise Duties- Stainless steel patties/pattas (b) Under the compounded levy scheme.

Date

Signature of the tenderer

(To be filled in by the Treasury or Bank) CERTIFICATE

Deposit Number Date Received payment of rupees (in words)

Signature of Treasurer or Accountant Agent or Manager (c) For payment through account-current:

Title of Account of Ledger Number and date of entry Amount (in words as well as in figures

(2)

(3)

(1)

Place Date

Signature of the manufacturer or his Authorized agent, (d) For payment through T.R.5/Special Revenue Money Order

Date of Payment T.R.5 No./Special Money Order Coupon No. Amount(in words as well as in figures)

(2)

(3)

(1)

Hace Date

Clearance allowed subject to fulfillment of the condition of deposits

Superintendent of Central Excise Note: Delete the entries not applicable.

38

THE GAZETTE OF INDIA: EXTRAORDINARY [PART II—SEC. 3(i)]

NOTIFICATION

New Delhi, the 28th June, 2001

No. 51/2001-CENTRAL EXCISE (N.T.)

G S R. 493(E) In exercise of the powers conferred by section 37 of the Central Excise Act 1944(1 of 19S) t h e ^ al Government hereby makes the following further rules to amend the Central Excise(No: 2) Rules, 2001, (hereinafter referred to as the said rules) namely:-

1 (l)These rules may be called the Central ExciSe(No:2) (First Amendment) Rules, 2001

(2) They shall come into force on the 1st day of July, 2001 39 2. In rule 15 of the said rules, for sub-rule (1), the following shall be substituted, namely:-

"(1) The Central Government may, by notification, specify the goods in respect of which an assessee shall have the option to pay the duty of excise on the basis of such factors as may be relevant to production of such goods and at such rate as may be notified for this purpose, subject to such limitations and conditions, including those relating to interest or penalty, as may be specified in such notification."

3. In rule 16 of the said rules, for sub-rule(2), the following shall be substituted, namely:-

"(2) If the process to which the goods arc subjected before returning does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken -under sub-rule(l) and in any other case the manufacturer shall pay duty on goods returned under sub-rule(l) at the rate applicable on the date of removal and on the value determined under sub-section(2) of section 3 or section 4 or section 4 A of the Act, as the case may be."

[F.NO.354/66/2001-TRU]

T. R. RUSTAGI, Jt. Secy.

Note: The principal rules were published in the Gazette oflndia. Extraordinary vide G.SR. 444(E) dated the 21st June, 2001.

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