NTF. NO. 38/2007-CE(N.T.), DT. 04/10/2007

Conditionally exempts Polyester staple fibres and yarn thereof for the period 01/03/1994 to 21/08/2002

G.S.R.642 (E).-Whereas the Central Government is satisfied that a practice was generally prevalent regarding levy of duty of excise (including non-levy thereof) under section 3 of the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the said Act), on goods of the description given in table below, and that such goods were liable to duty of excise which was not being levied under section 3 of the said Act according to the said practice, during the period as specified below:

TABLE

Description 1	Period 2
Polyester staple fibres, carded, combed or otherwise processed for spinning, containing cotton (not containing any other textile material) and in which the proportion of polyester staple fibre is less than 70 per cent. by weight of the total fibre content manufactured by a factory owned by the Khadi and Village Industries Commission or any organization approved by the Khadi and Village Industries Commission: Provided that, the manufacturer produces a certificate from an officer authorized in this behalf by the Khadi and Village Industries Commission, that these fibres have been hand spun into yarns by a factory owned by the Khadi and Village Industries Commission or any organization approved by the Khadi and Village Industries Commission for use only in the manufacture of Poly Vastra, that is to say, any cloth containing cotton and polyester, woven on handloom from yarns hand spun in India	1st March 1994 to 21st August 2002
Yarn of polyester staple fibre containing cotton (not containing any other textile material) and in which the proportion of polyester staple fibre is less than 70 per cent. by weight of the total fibre content, manufactured or purchased by a factory owned by the Khadi and Village Industries Commission or any organization approved by the Khadi and Village Industries Commission: Provided that, the manufacturer produces a certificate from an officer authorized in this behalf by the Khadi and Village Industries Commission, that the yarn have been used only in the manufacture of Poly Vastra, that is to say, any cloth containing cotton and polyester, woven on handloom from yarns hand spun in India.	1st March 1994 to 28th February 2002

2. Now, therefore, in exercise of the powers conferred by section 11C of the said Act, the Central Government hereby directs that the whole of duty of excise leviable under the said Act on such goods as described above but for the said practice, shall not be required to be paid for the period detailed in Column 2 above, subject to fulfillment of conditions prescribed in respect of such goods on which the said duty of excise was not being levied during the aforesaid period in accordance with the said practice:

Provided that the benefit under this notification shall not be admissible unless the unit claiming benefit in terms of this notification reverse the input credit, if any, taken in respect of inputs used in manufacture of such goods.

[F. No. 52/3/2005-CX.1)]

(Ashima Bansal)
Under Secretary to the Government of India

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