NTF. NO. 21/2005-CE(N.T.), DT. 03/05/2005

Cotton yarn gets Sec 11C benefits (Chapter 52)

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 cotton yarn in various forms falling under Chapter 52 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), removed from one factory to another for the purpose of processing and that such cotton yarn was liable to duty of excise which was not being levied according to the said practice during the period commencing on the 1st July, 2001 and ending with 24th March, 2003.

2. Now, therefore, in exercise of the powers conferred by section 11 C of the said Act, the Central Government hereby directs that the duty of excise payable on the said cotton yarn in various forms falling under the said heading, removed from one factory to another for the purpose of further processing, but for the said practice, shall not be required to be paid in respect of such cotton yarn on which the said duty of excise was not being levied during the aforesaid period in accordance with the said practice :

Provided that exemption contained in this notification shall be applicable only if the processed cotton yarn has been accounted for and disposed of in accordance with the Central Excise law.

Sd/-
(Ashok Kumar)
Under Secretary to the Government of India

F.No. 52/8/2003-CX.I

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