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31st March, 2003
Notification No. 23 /2003 - Central Excise
In exercise of the powers conferred by sub-section (1) of section
5A of the Central Excise Act, 1944 (1 of 1944) ( hereinafter
referred to as the Central Excise Act), the Central Government,
being satisfied that it is necessary in the public interest so to
do, hereby exempts excisable goods of the description specified
in column (3) of the Table below, and falling within the Chapter,
heading No. or sub-heading No. of the First Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred
to as the Central Excise Tariff Act), specified in the
corresponding entry in column (2) of the said Table, produced or
manufactured in an export oriented undertaking or an Electronic
Hardware Technology Park (EHTP) Unit or a Software Technology
Park ( STP) Unit and brought to any other place in India in
accordance with the provisions of Export and Import Policy and
subject to the relevant conditions specified in the Annexure to
this notification, and referred to in the corresponding entry in
column (5) of the said Table, from so much of the duty of excise
leviable thereon under section 3 of the Central Excise Act as
specified in the corresponding entry in column (4) of the said
Table.
Table
| Sr.No. |
Chapter or heading No. or sub-heading No. |
Description of Goods |
Amount of Duty |
Conditions |
| (1) |
(2) |
(3) |
(4) |
(5) |
|
1.
|
Any Chapter
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All goods
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Duty of excise leviable thereon as is
equivalent to the special additional duty of customs leviable
on such goods under section 3 A of the Customs Tariff Act,
1975 (51 of 1975) read with proviso to sub-section (1) of
section 3 of the said Central Excise Act, 1944.
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1
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2.
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Any Chapter
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All goods
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In excess of the amount equal to fifty
per cent. of the duty leviable under section 3 of the Central
Excise Act:
Provided that the duty payable in
accordance with this notification in respect of the said
goods shall not be less than the duty of excise leviable on
the like goods produced or manufactured outside the export
oriented undertaking, Electronic Hardware Technology Park
unit or Software Technology Park unit, which is specified in
the said Schedule read with the any other relevant
notification issued under sub-section (1) of section 5A of
the Central Excise Act:
Provided further that nothing contained
in the first proviso shall apply to the goods which are
chargeable to "Nil" rate of duty leviable under
section 12 of the Customs Act, 1962 read with any other
notification for the time being in force issued under
sub-section (1) of section 25 of the said Customs Act.
Illustration.- Assuming product X has
the value Rs. 100 under section 14 of the Customs Act,1962
and is chargeable to basic custom duty of 25% ad valorem,
additional duty of 16% ad valorem and special additional duty
of 4% ad valorem. The computation of duty required to be paid
would be as follows:
Basic Customs duty = Rs. 25/-
Value for the purpose of calculation of
additional duty= Rs. 100/- + Rs. 25/- = Rs. 125/-
Additional duty= 16% of Rs.125/-= Rs.
20/-
Value for the purpose of special
additional duty if leviable = Rs. 100/- + Rs. 25/- + Rs. 20/-
= Rs. 145/-
special additional duty if leviable= 4%
of Rs. 145/-= Rs. 5.8/-
Total duty payable but for this
exemption= Rs. 25/-+ Rs. 20/- + Rs. 5.80/-= Rs. 50.80/-
50% of aggregates of the duties of
customs= 50% of Rs.50.80/-= 25.40/-
Duty required to be paid in accordance
with this notification is Rs. 25.40/- provided it is not less
than the duty of excise leviable on like goods produced or
manufactured outside the oriented undertaking, etc.
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2
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3.
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Any Chapter
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All goods other than those referred to
in Sr. Nos. 5, 6 and 7 of this Table.
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In excess of amount equal to aggregate
of duties of excise leviable under Section 3 of the Central
Excise Act or under any other law for the time being in force
on like goods produced or manufactured in India other than in
an export oriented undertaking, if sold in India.
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3
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4.
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Any Chapter
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All goods produced or manufactured
wholly from the raw materials produced or manufactured in
India, other than those referred to in Sr. Nos. 5, 6 and 7 of
this table.
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in excess of amount equal to 30% of the
duty payable under section 3 of the Central Excise Act, 1944.
Illustration.- Assuming product X has
the value Rs. 100 under section 14 of the Customs Act,1962
and is chargeable to basic custom duty of 25% ad valorem,
special additional duty of 4% ad valorem and not chargeable
to additional duty. The computation of duty required to be
paid would be as follows:
Basic Customs duty = Rs. 25/-
Value for the purpose of special
additional duty if leviable = Rs. 100/- + Rs. 25/- = Rs.
125/-
special additional duty if leviable= 4%
of Rs. 125/-= Rs. 5.0/-
Total duty payable but for this
exemption= Rs. 25/-+ Rs. 5.00/-= Rs. 30.00/-
Thirty per cent. of the aggregates of
the duties of customs= 30% of Rs.30.00/-= 9.00/-
Duty required to be paid in accordance
with this notification = Rs. 9.00/-
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4
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5.
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52
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Cotton fabric (not containing any other
textile material), not subjected to any process,
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In excess of amount equal to fifty per
cent. of the aggregate duty, not reduced by any other
notification for the time being in force:
Provided that the fifty per cent. of
the aggregate duty leviable on the goods shall be apportioned
in the ration 2:1 between the duty leviable under the said
Central Excise Tariff Act and the Additional Duties of Excise
(Goods of Special Importance)Act, 1957 ( 58 of 1957).
Explanation .- For removal of doubt, it is clarified
that the value of the goods shall be determined in terms of
the section 4 of the Central Excise Act.
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5
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6.
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52, 54 or 55
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Fabrics of -
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cotton (containing any other textile
material),
-
man-made fibres, -
not subjected to any process
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In excess of amount equal to fifty per
cent. of the aggregate duty, not reduced by any other
notification:
Provided that the fifty per cent. of
the aggregate duty leviable on the goods shall be apportioned
in the ration 2:1 between the duty leviable under the Central
Excise Tariff Act, 1985 ( 5 of 1986) and the Additional
Duties of Excise ( Goods of Special Importance)Act, 1957 ( 58
of 1957).
Explanation .- For removal of doubts, it is clarified
that the value of the goods shall be determined in terms of
the section 4 of the Central Excise Act.
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5
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7.
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60
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(i) Knitted or crocheted fabrics of
cotton, whether or not processed;
(ii) Knitted or crocheted fabrics of
man-made fibres, not subjected to any process,
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In excess of amount equal to fifty per
cent. of the aggregate duty, not reduced by any other
notification:
Provided that the fifty per cent. of
the aggregate duty leviable on the goods shall be apportioned
in the ration 2:1 between the duty leviable under the said
Central Excise Tariff Act and the said Additional Duties of
Excise ( Goods of Special Importance)Act.
Explanation .- For removal of doubts, it is clarified
that the value of the goods shall be determined in terms of
the section 4 of the Central Excise Act.
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5
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8.
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71
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Plain Gold Jewellery
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In excess of Rs. 250 per 10Gms.
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6
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9.
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71
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Studded Gold Jewellery
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In excess of 5% ad valorem.
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6
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10.
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71
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Plain Silver Jewellery
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In excess of Rs. 500 per Kg.
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6
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11.
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Any Chapter
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Rags, trimmings and tailor cuttings
arising in the course of manufacture of ready made garments
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In excess of "Nil".
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7
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12.
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05.01
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Waste of fish or crustaceans, mollusks
or other aquatic invertebrates
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In excess of "Nil".
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-
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13.
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23.01
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Castor oil cakes,
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In excess of "Nil".
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8.
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14.
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23.02
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Guar meal
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In excess of "Nil".
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9
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15.
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52.02
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Cotton waste (including yarn waste and
garneted stock)
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In excess of "Nil".
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-
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16.
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53.07, 53.10, 5702.12, 5703.20, 58.01,
58.02, 58.06 or 6305.10
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Yarn of jute and goods of jute.
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In excess of "Nil".
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10
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17.
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Any Chapter
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Bone meal.
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In excess of "Nil".
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10
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18.
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Any Chapter
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Rice husk and shark, residue of wheat,
residue of pulses; and residue of any other cereal.
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In excess of "Nil".
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10
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19
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Chapter 9
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Tea waste, and coffee waste.
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In excess of "Nil".
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10
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20.
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Any Chapter
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Waste of Castor oil seed, waste of
caster oil derivatives; waste of sesame seed; and waste of
any other oil seed.
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In excess of "Nil".
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10
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21.
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Any Chapter
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Waste from food industries.
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In excess of "Nil".
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10
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22.
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Any Chapter
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All goods
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In excess of "Nil" when
cleared to a person holding an advance release order issued
by the licensing authority against an Advance Licence in
terms of paragraph 4.1.1 of the Export and Import Policy,
read with relevant provisions of the Handbook of Procedures,
Volume I, or a back to back inland letter of credit issued by
a bank in terms of Paragraph 4.1.9 of the Export and Import
Policy read with relevant provisions of the Handbook of
Procedures, Volume -I.
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11
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23.
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Any Chapter
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All goods
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In excess of amount equal to additional
duty of customs leviable under section 3 of the Customs
Tariff Act, 1975 (51 of 1975) on similar goods if imported,
when cleared to a person holding an advance release order
issued by the licensing authority against a Duty Free
Replenishment Certificate in terms of Paragraph 4.2 of the
Export and Import Policy read with relevant provision of the
Handbook of Procedures, Volume-I or a back to back inland
letter of credit issued by a bank in terms of Paragraph 4.1.9
of the Export and Import Policy read with relevant provisions
of the Handbook of Procedures, Volume-I.
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11
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ANNEXURE
| Sr. No. |
Conditions |
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1.
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If the goods being cleared into
Domestic Tariff Area are not exempted by the State Government
from payment of sales tax.
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2.
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If,-
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(i)
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the goods are cleared into Domestic
Tariff Area in accordance with sub-paragraphs (a), (b),
(d) and (h) of Paragraph 6.8 of the Export and Import
Policy;
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(ii)
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exemption shall not be availed
until Deputy Commissioner of Customs or Assistant
Commissioner of Customs or Deputy Commissioner of Central
Excise or Assistant Commissioner of Central Excise, as
the case may be, is satisfied with the said goods
including Software, Rejects, Scrap, Waste or Remnants;
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(a)
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being cleared in Domestic Tariff
Area, other than scrap, waste or remnants are similar to
the goods which are exported or expected to be exported
from the units during specified period of such clearances
in terms of Export and Import Policy;
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(b)
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the total value of such goods being cleared under
sub-paragraphs (a), (b) (d) and (h) of Paragraph of the
Export and Import Policy, into Domestic Tariff Area from
the unit does not exceed 50% of the Free on Board value
of exports made during the year (starting from 1st
April of the year and ending with 31st March
of next year) by the said unit;
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(c)
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the balance of the production of
the goods which are similar to such goods under clearance
into Domestic Tariff Area, is exported out of India or
disposed of in Domestic Tariff Area in terms of Paragraph
6.9 of the Export and Import Policy;
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(iii)
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clearance of goods into Domestic
Tariff Area under sub-paragraphs (a), (b), (d) and (h) of
Paragraph 6.8 of the Export and Import Policy shall be
allowed only when the unit has achieved positive Net
Foreign Exchange Earning ; and
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(iv)
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clearance of goods into Domestic Tariff Area under
sub-paragraph (a) of Paragraph 6.8 of the Export and
Import Policy in excess of 5% of free on board value of
exports made by the said unit during the year (starting
from 1st April of the year and ending with 31st
March of the next year) shall be allowed only when the
unit has achieved positive Net Foreign Exchange Earning.
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3.
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If,-
(i) the goods are produced
or manufactured wholly from the raw materials produced or
manufactured in India;
(ii) the goods are cleared
into Domestic Tariff Area in accordance with sub-paragraphs
(a), (b), (d) and (h) of Paragraph 6.8 of the Export and
Import Policy; and
(iii) such finished goods,
if manufactured and cleared by the unit other than export
oriented undertaking are not wholly exempt from duties of
Excise or are not chargeable to "NIL" rate of duty.
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4.
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If,-
(i) the goods are produced
or manufactured wholly from the raw materials produced or
manufactured in India;
(ii) such finished goods
are cleared into Domestic Tariff Area in accordance with
sub-paragraphs (a), (b), (d) and (h) of Paragraph 6.8 of the
Export and Import Policy; and
(iii) the goods, if
manufactured and cleared by the unit other than export
oriented undertaking are wholly exempt from duties of Excise
or are chargeable to "NIL" rate of duty.
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5.
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If the goods are cleared into Domestic
Tariff Area in accordance with sub-paragraphs (a), (b), (d)
and (h) of Paragraph 6.8 of the Export and Import Policy.
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6.
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If the goods are cleared into Domestic
Tariff Area in accordance with Paragraph 6.8 ( c) of the
Export and Import Policy.
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7.
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If the percentage of waste material in
the form of rags, trimmings and tailor cutting does not
exceed the percentage fixed in this regard by the Board of
Approvals for export oriented undertakings or as the case may
be, by the Development Commissioner.
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8.
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If the goods are manufactured from
indigenous castor oil seeds on indigenous plant and
machinery.
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9.
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If the goods are manufactured wholly
from indigenous guar seeds.
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10.
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If the goods are manufactured wholly
from indigenous raw materials.
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11.
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If,-
(i) the Advance Licence holder/ Duty
Free Replenishment Certificate holder produces the said
advance release order specifying therein the quantity,
description (including the technical specifications) and the
value of each of the said goods permitted to be cleared in
accordance with this notification or, as the case may be, his
copy of back to back inland letter of credit specifying
therein the name and address of the indigenous supplier in
original before the proper officer of Central Excise or
Customs; and
(ii) the quantity and the value of each
of the items are debited by the proper officer of Central
Excise or Customs in the said advance release order or as the
case may be, the back to back inland letter of credit, before
allowing clearance of the said goods.
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2. The
notifications of the Government of India in the erstwhile
Ministry of Finance, Department of Revenue vide Nos.
103/93-Central Excise, dated 27th December, 1993
(G.S.R. 783 (E), dated the 27th December, 1993,
2/95-Central Excise, dated the 4th January, 1995
(G.S.R 9(E), dated the 4th January, 1995) ,
6/97-Central Excise, dated 1st March, 1997 (G.S.R. 112
(E), dated the 1st March, 1997), 8/97-Central Excise,
dated the 1st March, 1997 (G.S.R. 114(E), dated the 1st
March, 1997), 20/97-Central Excise, dated the 11th
April, 1997 ( G.S.R 219 (E), dated the 11th April,
1997), 13/98-Central Excise, dated the 2nd June, 1998
(G.S.R 308 (E), dated the 2nd June, 1998),
28/2001-Central Excise, dated the 16th May, 2001
(G.S.R. 359 (E), dated the 16th May, 2001), and
20/2002-Central Excise, dated 1st March, 2002 (G.S.R.
141(E), dated the 1st March, 2002) are hereby
rescinded.
3. This
notification shall come into force on the 1st day of
April, 2003.
Explanation.- For the purposes of this notification,-
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(i)
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" aggregates duty" means
aggregate of ,-
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(i) the duty of excise specified in the
First Schedule of the Central Excise Tariff Act, 1985 (5 of
1986); and
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(ii) the duty of excise specified in the
First Schedule to the Additional Duties of Excise ( Goods of
Special Importance) Act, 1957 ( 58 of 1957);
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(ii)
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"Export and Import Policy" means the Export and
Import Policy, 2002 - 2007 published by the Government of
India in the Ministry of Commerce and Industries vide
notification No. 1(RE-2003) /2002-2007, dated the 31st
March, 2003, as amended;
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(iii)
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"export oriented undertaking" has the same meaning
as assigned to "hundred percent. export oriented
undertaking" in clause (ii) to the Explanation of
sub-section (1) of section 3 of the Central Excise Act, 1944
( 1 of 1944);
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(iv)
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"Electronic Hardware Technology Park unit " means a
unit established under and in accordance with the Electronic
Hardware Technology Park (EHTP) Scheme published by the
Government of India in the Ministry of Commerce vide
notification No. 5(RE- 95) 92-97, dated 30th of
April, 1995 and approved by an Inter Ministerial Standing
Committee appointed by the Government of India in the
Ministry of Industry (Department of Industrial Development)
vide notification No. S.O.117 (E), dated the 22nd
February, 1993;
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(v)
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"Handbook of Procedures, Volume I" means the
Handbook of Procedures, Volume-I, 2002-2007 published by the
Government of India in the Ministry of Commerce and Industry
vide Public Notice No. 1( RE-2003) /2002-2007, dated the 31st
March, 2003, as amended from time to time;
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(vi)
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"Software Technology Park unit" means a unit
established under and in accordance with Software Technology
Parks (STP) Scheme published by the Government of India in
the Ministry of Commerce vide notification No.
4/(RE-95)/92-95, dated 30th April, 1995 and
approved by an Inter Ministerial Standing Committee appointed
by the Government of India in the Ministry of Industry
(Department of Industrial Development) vide notification No.
S.O. 117(E) dated the 22nd February, 1993;
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(vii)
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"Domestic Tariff Area" means
India except special economic zones and export oriented
undertaking, Software Technology Park units and Electronic
Hardware Technology Park units.
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D. S. Garbyal
Under Secretary to the Government of India
F. No. 305/45/2003-FTT |
