New Delhi, dated the 1st March, 2000 11 Phalguna (1921 Saka)

NOTIFICATION No.9/2000-CENTRAL EXCISE, dated 1-3-2000 (effective 1-4-2000), as amended by Not ification No. 31/2000-CE., dated 31-3-2000, No. 47/2000-CE., dated 1-9-2000 an d No. 6/2001-CE., dated 1-3-2001. In exercise of the powers conferred by sub-section (1) of section 5 A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being sat isfied that it is necessary in the public interest so to do, hereby exempts clea rances, specified in column (2) of the Table below (hereinafter referred to as t he said Table), for home consumption, of excisable goods of the description spec ified in the Annexure appended to this notification (hereinafter referred to as the specified goods), from so much of each of the duties of excise specified the reon in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) or the second Schedule to the said Central Excise Tariff Act, as the case may be, as is in excess of the amount calculated at the rate specified in the correspond ing entry in column (3) of the said Table:

TABLE S.No. Value of Clearances Rate of duty (1) (2) (3) 1. First clearances upto an aggregate value not exceeding one lakh rupees made on o r after the 1st day of April in any financial year.

Provided that if any clearances for home consumption have been made before the 1 st day of September 2000 , whether at nil rate or otherwise, the aggregate value

of such clearances shall be taken into account for computing the limit of one h undred lakh rupees." (b) Sl No 2 and the entries relating thereto shall be omitted.

Provided further that in the financial year 2000-2001, in the period beginning w ith the 1st day of March, 2001 and ending on the 31st day of March, 2001, both d ays inclusive , the aggregate value of clearances of woven pile fabrics or cheni lle yarn that may be cleared at the concessional rate of sixty percent of normal duty , shall be determined in accordance with the transitional provisions conta ined in paragraph 4A . Sixty per cent of normal rate of duty. 2.. Omitted. 3. All clearances of the specified goods which are used as inputs for further manuf acture of any specified goods within the factory of production of the specified goods. Nil

ILLUSTRATIONS REGARDING SL NO 1 OF THE TABLE( In these Illustrations, "clearances " means clearances for home consumption.

Illustration 1. As on the 31st day of August, 2000, a manufacturer made clearanc es of an aggregate value of sixty lakh rupees, comprising of fifty lakh rupees a t the concessional rate of sixty per cent of normal duty and ten lakh rupees at the concessional rate of eighty per cent of normal duty. He shall be entitled to additional clearances upto an aggregate value of forty lakh rupees, at the conc essional rate of sixty per cent of normal duty, during the remaining part of the financial year 2000-2001.

Illustration 2. A manufacturer made clearances of an aggregate value of clearanc es of thirty lakh rupees at nil rate during the financial year 2000-2001 under n otification 8/2000-Central Excise dated the 1st March 2000. Thereafter he opted for exemption under this notification. As on the 31st day of August, 2000, the m anufacturer made clearances of an aggregate value of sixty lakh rupees, comprisi ng of thirty lakh rupees at nil rate of duty, twenty lakh rupees at the concessi onal rate of sixty per cent of normal duty and ten lakh rupees at the concession al rate of eighty per cent of normal duty. He shall be entitled under this notif ication to additional clearances upto an aggregate value of forty lakh rupees, a t the concessional rate of sixty per cent of normal duty, during the remaining p

art of the financial year 2000-2001.

Illustration 3. As on the 31st day of August, 2000, a manufacturer has made clea rances of an aggregate value of one hundred and ten lakh rupees, comprising of f ifty lakh rupees at the concessional rate of sixty per cent of normal duty , fif ty lakh rupees at the concessional rate of eighty per cent of normal duty and te n lakh rupees at the normal rate of duty .He shall not be entitled to any exempt ion under this notification during the remaining part of the financial year 2000 -2001. 2. The exemption contained in this notification shall apply only subject to the following conditions, namelya manufacturer who intends to avail the exemption under this notificatio n shall exercise his option in writing for availing the exemption under this not ification before effecting the first clearances and such option shall be effecti ve from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year. While exercising the option under condition (i), the manufacturer shall inform in writing to the jurisdictional Deputy Commissioner or Assistant Commiss ioner of Central Excise with a copy to the Superintendent of Central Excise givi ng the following particulars, namely:name and address of the manufacturer; location/locations of factory/factories; description of specified goods produces; date from which option under this notification has been exercised; aggregate value of clearances of specified goods (excluding the value of clearances referred to in para 3 of this notification) till the date of exercis ing the option. (iii) where a manufacturer opts for availing the exemption under this notifi cation in terms of condition (i) above, the clearances of specified goods alread y made during the financial year, prior to the exercise, of such option, shall b e taken into account for computing the aggregate value of clearances, as specifi ed in the said Table. (iv) where a manufacturer clears the specified goods from one or more factor ies, the exemption in his case shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table, and not separate ly for each factory. (v) Where the specified goods are cleared by one or more manufacturers from a factory, the exemption shall apply to the aggregate value of clearances mentio ned against each of the serial numbers in the said Table and not separately for each manufacturer. (vi) The aggregate value of clearances of all excisable goods for home consu mption by a manufacturer from one or more factoreis, or form a factory by one or more manufacturers, does not exceed rupees three hundred lakhs in the preceding financial year. For the purpose of determining the aggregate value of clearances for home co nsumption, the following clearances shall not be taken into account, namely:(a) clearances, which are exempt from the whole of the excise duty levia ble thereon (other than an exemption based on quantity or value of clearances) u

nder any other notification or on which no excise duty is payable for any other reason; (b) clearances bearing the brand name or trade name of another person, w hich are ineligible for the grant exemption under this notification in terms of paragraph 4; (c) clearances of specified goods which are used as inputs for further m anufacture of any specified goods within the factory of production of the specif ied goods; (d) clearances of strips of plastics used within the factory of producti on for weaving of fabrics or for manufacture of sacks or bags made of polymers o f ethylene or propylene. (e) clearances of hot re-rolled products of non alloy steel falling unde r sub-heading Nos. 7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92 , 7211.99, 7213.90, 7214.90, 7215.90, 7216.10 and 7216.90, lying in stock on 31s t march, 2000, on which duty of excise has been paid under section 3A of the Cen tral Excise Act, 1944. (f) clearances of ingots and billets of non-alloy steel falling under su b-heading Nos. 7206.90 and 7207.90, lying in stock on 31st March, 2000, on which duty of excise has been paid under section 3A of the Central Excise Act, 1944. The exemption contained in this notification shall not apply to the specifie d goods bearing a brand name or trade name, whether registered or not, of anothe r person, except in the following cases, namely:(a) where 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 appliances by followin g the procedure laid down in Chapter X of the Central Excise Rules, 1944. Provided that manufacturers, whose aggregate value of clearances for home co nsumption of such specified goods for use as original equipment does not exceed rupees fifty lakhs in the financial year 1999-2000, as calculated in the manner specified in paragraph 1, 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 ofthe Khadi and Village Industries Commission;or a State Khadi and Village Industry Board; or the National Small Industries Corporation; or a State Small Industries Development Corporation; or a State Small Industries Corporation; (c) where the specified goods are manufactured in a factory located in a rur al area. 4A. The following transitional provisions shall apply for the period from 1st Ma rch, 2001 to 31st March 2001, both days inclusive, in respect of manufacturers o f woven pile fabrics and chenille yarn :(1) notwithstanding anything contained in paragraph 1, the aggregate value of cl earances of woven pile fabrics or chenille yarn or both, that shall be allowed t o be cleared at nil rate of duty shall be determined in accordance with clauses 2) to 5) below

(2)a manufacturer whose aggregate value of clearances for home consumption, as o n 28th February , 2001 does not exceed rupees ninety lakhs , is only entitled to make clearances for home consumption, of an aggregate value not exceeding ten l akhs, at the concessional rate of sixty percent of normal duty; (3)a manufacturer whose aggregate value of clearances for home consumption as on 28th February , 2001 exceeds rupees ninety lakhs , is only entitled to make cle arances for home consumption, at the concessional rate of sixty percent of norma l duty of an aggregate value, equal to the difference between hundred lakhs and the aggregate value of clearances for home consumption as on the 28th of Februar y, 2001; (4)a manufacturer whose aggregate value of clearances for home consumption as on 28th February , 2001 exceeds rupees one hundred lakhs , is not entitled to make any clearances for home consumption at the concessional rate of sixty percent o f normal duty ; ( 5) for the purposes of these transitional provisions, the aggregate value of c learances shall mean the aggregate value of clearances of woven pile fabrics or chenille yarn, as the case may be, determined in accordance with the provisions of paragraph 3 Illustration 1: As on 28th February, 2001, a manufacturer of woven pile fabrics or chenille yarn has made clearances for home consumption of an aggregate value of rupees eighty five lakhs. He is entitled to clearances of an aggregate value of rupees ten lakhs at the concessional rate of sixty percent of normal duty. Illustration 2 : As on 28th February, 2001, a manufacturer of woven pile fabrics or chenille yarn has made clearances for home consumption of an aggregate value of rupees ninety five lakhs. He is entitled , to clearances of an aggregate val ue of rupees five lakhs at the concessional rate of sixty percent of normal duty . This notification shall come into force on the 1st day of April,2000. Explanation- For the purpose of this notification,(A) "brand name" or "trade name" mean a brand name or trade name, whether re gistered or not, that is to say a name or a mark, such as symbol, monogram, labe l, signature or invented word or writing which is used in relation to such speci fied goods for the purpose of indicating, or so as to indicate a connection in t he 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 specified goods manufactured by a manufacturer bear a brand name o r 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 bee n manufactured by such other manufacturer or trader; (C) "value" means.(i) in respect of specified goods which have been notified under section 4A of the Central Excise Act, 1944 (1 of 1944), as determined in accordance wit h the provisions of that section, and (ii) in respect of specified goods other than those referred to in sub-c lause (i) 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 se ction 3 of the said Act: (D) in the determination of the value of clearances of Chinaware or Porcelai

nware or both, where a manufacturer gets Chinaware or Porcelainware or both fire d in a kiln belonging to or maintained by a Pottery Development Centre run by th e Central Government or a State Government or by the Khadi and Village Industrie s Commission, the value of the Chinaware or Porcelainware or both, belonging to the said manufacturer and fired in such 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 Ind ustries Corporation, or by a State Small Industries Corporation or by the Khadi and Village Industries Commission, then the value of excisable goods cleared fro m such factory alone shall be taken into account; (F) "normal rate of duty" means (i) in the case of goods leviable to duty under the First Schedule to th e Central Excise Tariff Act, 1985 (5 of 1986), at the rate specified for such go ods in that Schedule read with any relevant notification (other than this notifi cation or a notification in which exemption is based on the value or quantity of clearances) issued under sub-section (1) of section 5A of the Central Excise Ac t, 1944 (1 of 1944). (ii) In the case of goods leviable to duty under the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), at the rate specified for such goods in that Schedule read with any relevant notification (other than this noti fication or a notification in which exemption is based on the value or quanitity of clearances) issued under sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) (G) "clearnces for home consumption" shall also include clearances for expor t to Bhutan and Nepal. (H) "rural area" means the area compriesed in a village as defined in the la nd revenue records excluding(i) the area under nay municipal committee, municipal corporation, town area committee, cantonment board or notified area committee, or (ii) any area that may be notified as an urban area by the Central Gover nment or a State Government. (I) refund of the difference between any duty paid on clearances made befor e the 1st day of September, 2000 and the concessional rate of sixty per cent of normal duty on the ground that such clearances are included in the aggregate val ue of clearances under Sl.No.1 of the TABLE, shall not be admissible. (I) "retail sale price" means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes, l ocal or otherwise, freight , transport charges, commission payable to dealers an d all charges towards advertisement, delivery, packing , forwarding and the like , as the case may be, and the price is the sole consideration for such sale. ANNEXURE All goods specified in the Schedule to the Central Excise Tariff Act, 1985 ( 5 of 1986), other than the following , namely:all goods which are chargeable to nil rate of duty or are exempt from the wh ole of the duty of excise leviable thereon; all goods falling under heading No. 09.02; all goods falling under heading No. 21.06 and sub-heading Nos. 2101.10 and 2 101.20; all goods falling under Chapter 24 of the said Schedule (other than unbrande

d chewing tobacco and preparations containing chewing tobacco, falling under hea ding No.24.04 of the said Schedule); all goods falling under heading No. 25.04; sandalwood oil; all goods falling under heading No. 36.05; all goods falling under heading No. 37.01, 37.02, and sub-heading No. 3703.1 0; strips of plastics intended for weaving of fabrics or sacks, polyurethane fo am and articles of polyurethan foam; falling under Chapter 39; all goods falling under Chapter 51 of the said Schedule other than those fal ling under sub-heading Nos. 5105.30 and 5105.40 and heading Nos. 51.06, 51.07, 5 1.08, 51.09, 51.10 and 51.11 (except woven fabrics of wool falling under heading Nos. 51.10 or 51.11) and under 51.12; all goods falling under Chapter 52 of the said Schedule other than goods fal ling under heading Nos. 52.04; all goods falling under Chapter 53 of the said Schedule except goods falling under heading Nos. 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); all goods falling under Chapter 54 of the said Schedule except goods falling under heading Nos.54.01; all goods falling under Chapter 55 of the said Schedule except goods falling under heading Nos.55.05, 55.08 and shoddy yarn manufactured from used or new ra gs falling under heading No. 55.09 or 55.10; all goods falling under Chapter 56 of the said Schedule except goods falling under heading Nos.56.01, 56.02, 56.03, 56.04, 56.05, (other than of manmade fil aments), chenille yarn falling under sub-heading No. 5606.00, 56.07 (other than of jute), 56.08 and 56.09 all goods falling under Chapter 57 of the said Schedule; all goods falling under Chapter 58 of the said Schedule except goods falling under heading Nos. 58.03, 58.06, 58.07, 58.08, uncut grey (unprocessed) woven w eft pile fabrics of cotton manufactured from grey unprocessed cotton yarn fallin g under sub-heading No. 5801.21, unprocessed woven pile fabrics of cotton falli ng under sub-heading No. 5801.21 and unprocessed woven pile fabrics of man-made fibres falling under sub-heading No. 5801.31, fabrics of cotton or man-made fibr es falling under sub-heading No. 5802.51, and unprocessed cotton terry towelling fabrics falling under sub-heading No. 5802.21;; all goods falling under Chapter 59 of the said Schedule except goods falling under heading Nos;59.01, 59.05, 59.06, 59.08, 59.09, 59.10, 59.11 and textile f abrics coated or laminated with preparations of low-density polyethylene; all goods falling under Chapter 60 of the said Schedule except goods falling under sub-heading No. 6002.10 and fabrics of cotton man-made fibres not subject ed to any process falling under heading Nos. 60.01 or 60.02; xix-a. all goods falling under chapter 62; xx. blankets of wool falling under Chapter 63 of the said Schedule; xxi. aluminium circles, whether or not trimmed, falling under Chapter 76; xxii. (A) All goods falling under(a) heading No. 74.03, excluding the following goods falling under sub-h eading No. 7403.21, namelycast brass bars/rods of a length not exceeding 3 feet, cast brass bars/rods of a length not exceeding 10 feet used in the f actory of production for making wires falling under sub-heading No. 7408.29; copper flats of a weight not exceeding 2 kilograms used for making c opper strips falling under heading No. 74.09, brass billets weighing upto five kilograms,

(b) heading No. 74.09 (excluding copper strips produced from copper flat s of a weight not exceeding 2 kilograms), (c)sub-heading Nos. 7407.11, 7407.12, 7408.11, 7408.21; and (B) copper circles, whether or not trimmed. (C) ball or roller-bearings falling under Chapter 84. xxiii. all goods falling under heading Nos 87.01, 87.02, 87.03, 87.04, 87.05 , 87.06 and 87.11 [other than powered cycles and powered cycle rickshaw ("powere d cycle" or powered rickshaw means a machanically propelled cycle or, as the cas e may be, mechanically propelled cycle rickshaw, which may also be peddled, if a ny necessity arises for so doing]: xxiv. all goods falling under heading Nos. 91.01 or 91.02; xxiv-a. all goods falling under Chapter 93; xxv. all goods falling under sub-heading Nos 9605.10.

(T.R.Rustagi) JOINT SECRETARY TO THE GOVERNMENT OF INDIA F.NO.334/1/2000

(T.R.RUSTAGI) JOINT SECRETARY TO THE GOVERNMENT OF INDIA F.No. 334/1/2000