In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and sub-section (3) of section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in the Schedule appended hereto, other than the goods specified in the Annexure appended hereto, and cleared from a unit located in the State of Uttarakhand [OLD- Uttranchal ] or State of Himachal Pradesh, from the whole of the duty of excise or additional duty of excise, as the case may be, leviable thereon under any of the said Acts.

Provided that the exemption contained in this notification shall apply subject to the following conditions, namely:–

(i) The manufacture who intends to avail of the exemption under this notification shall exercise his option in writing before effecting the first clearance and such option shall be effective from the date of exercise of the option and shall not be withdrawn during the remaining part of the financial year;

(ii) The manufacturer shall, while exercising the option under condition (i), inform in writing to the jurisdictional Deputy Commission of Central Excise or Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise giving the following particulars, namely:–
 

(a) name and address of the manufacturer;

(b) location/locations of factory/factories

(c) description of inputs used in manufacture of specified goods;

(d) description of the specified goods produced;

(e) date on which option under this notification has been exercised;
 

(iii) The manufacturer may, for the current financial year, submit his option in writing on or before the 30th day of November, 2003.

(After the opening paragraph the proviso has been inserted vide Ntf. No. 76/2003-CE, DT. 05/11/2003)

2. The exemption contained in this notification shall apply only to the following kinds of units, namely:-

(i) new industrial units, which have commenced commercial production on or after the 7th day of January, 2003, but not later than the 31st day of March, 2010 [OLD- 31st day of March, 2007];

(ii) industrial units existing before the 7th day of January, 2003, but which have undertaken substantial expansion by way of increase in installed capacity by not less than twenty-five per cent. on or after the 7th day of January, 2003, but have commenced commercial production from such expanded capacity, not later than the 31st day of March, 2010[OLD- 31st day of March, 2007].

(In clause (i) & (ii) the words and figures "31st day of March, 2010" has been substituted vide NTF. NO. 38/2006-CE, DT. 02/08/2006)

(Above paragraph 2, has been substituted vide NTF. NO. 27/2004-CE, DT. 09/07/2004)

[OLD -
2. The exemption contained in this notification shall apply only to the following kinds of units, namely:-

(a) new industrial units which have commenced their commercial production on or after the 7th day of January, 2003;

(b) industrial units existing before the 7th day of January, 2003, but which have undertaken substantial expansion by way of increase in installed capacity by not less than twenty five per cent, on or after the 7th day of January, 2003. ]

3. The exemption contained in this notification shall apply to any of the said units for a period not exceeding ten years from the date of publication of this notification in the Official Gazette or from the date of commencement of commercial production, whichever is later.

4. The exemption contained in this notification shall not apply to such goods which have been subjected to only one or more of the following processes, namely, preservation during storage, cleaning operations, packing or repacking of such goods in a unit container or labeling or re-labelling of containers, sorting, declaration or alteration of retail sale price and have not been subjected to any other process or processes amounting to manufacture in the States of Uttarakhand or Himachal Pradesh.

(In above notification the word "Uttarakhand" - substituted and paragraph 4. - added vide NTF. NO. 01/2008-CE, DT. 18/01/2008)

5. The exemption contained in this notification shall not apply to an existing industrial unit as on 1st of March, 2016, which undertakes substantial expansion of existing capacity or installs fresh plant, machinery or capital goods for production of gold or silver from gold dore, silver dore or any other raw material, by using such expanded capacity or such fresh plant, machinery or capital goods, and commences commercial production from such expanded capacity or such fresh plant, machinery or capital goods, on or after 1st March, 2016.

(Above paragraph 5 has been inserted vide NTF. NO. 06/2016-CE, DT. 01/03/2016)
 

(Above Schedule & Annexure has been substituted vide NTF. NO. 12/2006-CE, DT. 01/03/2006)

[OLD-

ANNEXURE

[F.No. 354/122/2002- TRU]

(V.Sivasubramanian)
Deputy Secretary to the Government of India

(Please refer NTF. NO. 04/2008-CE(N.T.), DT. 18/01/2008 for quarterly return for production and removal of goods under exemption - form shall be used in duplicate : Form-A)

(Please refer Cir. No. 772/05/2004-CX, Dt. 21/01/2004 - Clarifications on the term “Substantial Expansion” in the area based exemptions)

(Please refer Cir. No. 771/04/2004-CE, Dt. 16/01/2004)

(Please refer Cir. No. 757/73/2003-CX, Dt. 22/10/2003 for Central Excise Registration)