NTF. NO. 15/2002-CE, DT. 01/03/2002

Seeks to prescribe effective duty of excise in respect of specified processed textile fabrics, articles of apparel and other made up textile made ups.
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act,1944 (1 of 1944), 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), specified in the corresponding entry in column (2) of the said Table ,-

(a) in respect of the goods specified against S.Nos. 2, 3, 5, 6, 8, 9, 10, 12, 13, 15, 16 and 17, from so much of the duty of excise specified in the First Schedule to the said Central Excise Tariff Act as is in excess of an amount calculated at the rate equivalent to seventy-five per cent. of the duty of excise specified in the First Schedule,; and

(b) in respect of the goods specified against S.Nos. 1, 4, 7, 11 and 14 from the whole of the duty of excise specified in the First Schedule, subject to the relevant conditions specified below the said Table, and referred to in the corresponding entry in column (4) of the said Table:

Provided that nothing contained in this notification shall apply to the goods specified in clause (a) above on or after the 1st day of March, 2005.

Explanation I.- For the purposes of the conditions specified below, textile yarns or fabrics shall be deemed to have been duty paid even without production of documents evidencing payment of duty thereon.

Explanation II.- For the removal of doubt, it is hereby clarified that once amanufacturer opts to pay duty in respect of goods from his factory or warehouse, asthe case may be, specified against S.No. 2, 5, 8, 12 or 15, as the case may be, of theTable below, he shall do so in respect of all the clearances of the said goods specifiedagainst each of the aforesaid S.No. till such time he opts not to pay duty.

Explanation III.- For the removal of doubt, it is hereby clarified that Condition No. 1or 4, as the case may be, shall be deemed to have been fulfilled even if CENVATcredit in respect of capital goods, which are not used exclusively in the manufactureof exempted goods, is availed under the CENVAT Credit Rules, 2002.

(Explanations has been inserted vide Central Excise Notification No.26/2002-CE, dated 27-4-2002)

Explanation IV.-In this notification,-

(1) for the removal of doubt, it is hereby clarified that in Explanation I and in condition Nos. 1 and 2 specified below the Table, the expression “textile yarns” is intended to include therein “textile fibres” also;

(2) for the purposes of the exemption to processed textile fabrics, specified in the Table against any of the S.Nos. 3, 6, 9, 10 and 13, manufactured by a composite mill (i.e., a manufacturer engaged in processing of fabrics along with the spinning of yarn from fibres and weaving or knitting or crocheting of fabrics within the same factory), or by a manufacturer engaged in processing of fabrics along with weaving or knitting or crocheting of fabrics within the same factory, the condition specified in column (5) against each of the said respective S.Nos. is intended to have been satisfied if the said processed fabrics are manufactured form textile fibres or yarns, as the case may be, on which the appropriate duty of excise leviable under the First or the Second Schedule to the said Central Excise Tariff Act read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tairff Act, 1975, as the case may be, has been paid;

(3) for the purposes of the exemption to goods specified in the Table, in column (3) against S.No.17, manufactured by a manufacturer engaged in the production of the said goods alongwith processing of fabrics and weaving or knitting or crocheting of fabrics within the same factory, the condition speicified in column (5) against the said S.No. is intended to be satisfied if the said goods are manufactured from textile yarns, on which the appropriate duty of excise leviable under the First or the Second Schedule to the said Central Excise Tariff Act read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid;

(4) this Explanation shall have effect as if it had always been the part of this notification.

(Explanation IV has been inserted vide Central Excise Notification No.37/2002-CE, dated 3-07-2002)

Table

S.No.	Chapter or heading No., or sub-heading No.	Description	Condition No.
(1)	(2)	(3)	(4)
1.	5112.10	Woven fabrics, not subjected to any process	1
2.	5112.10	Woven fabrics, not subjected to any process	2
3.	51.12	Woven fabrics, subjected to any process	3
4.	5309.10 or 5311.10	Woven fabrics, not subjected to any process	1
5.	5309.10 or 5311.10	Woven fabrics, not subjected to any process.	2
6.	53.09 or 53.11	Woven fabrics, subjected to any process	3
7.	5801.91, 5802.41, 5804.19, 5806.10 or 5806.39	Woven fabrics of other textile materials (other than of jute), not subjected to any process	1
8.	5801.91, 5802.41, 5804.19, 5806.10 or 5806.39	Woven fabrics of other textile materials (other than of jute), not subjected to any process	2
9.	5806.20 or 5806.40	All goods whether or not subjected to any process	2
10.	5801.92, 5802.42, 5804.19, 5806.10 or 5806.39	Woven fabrics of other textile materials (other than of jute), subjected to any process	3
11.	6001.19, 6001.29, 6001.99, 6002.41, 6002.49, 6002.91 or 6002.99	Knitted or crocheted fabrics of textile materials (other than cotton or man-made fibre), not subjected to any process	1
12.	6001.19, 6001.29, 6001.99, 6002.41, 6002.49, 6002.91 or 6002.99	Knitted or crocheted fabrics of textile materials (other than cotton or man-made fibre), not subjected to any process	2
13.	6001.19, 6001.29, 6001.99, 6002.41, 6002.49, 6002.91 or 6002.99	Knitted or crocheted fabrics of textile materials (other than cotton or man-made fibre), subjected to any process	3
14.	61.01	Articles of apparel, knitted or crocheted	4
15.	61.01	Articles of apparel, knitted or crocheted	5
16.	62.01	Articles of apparel, not knitted or crocheted	6
17.	63	All goods except jute blankets and sacks and bags of jute used for the packing of goods	6

Condition No.	Conditions
(1)	(2)
1	If made from textile yarns on which the appropriate duty of excise leviable under the First Schedule or the Second Schedule to the said Central Excise Tariff Act read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid and no credit of the duty paid on inputs or capital goods has been taken under rule 3 or rule 11 of the CENVAT Credit Rules, 2002.
2	If made from textile yarns on which the appropriate duty of excise leviable under the First Schedule or the Second Schedule to the said Central Excise Tariff Act read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid.
3	If made from textile fabrics, whether or not processed, on which the appropriate duty of excise leviable under the First Schedule to the said Central Excise Tariff Act, read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid.
4	If no credit of the duty paid on inputs or capital goods has been taken under rule 3 or rule 11 of the CENVAT Credit Rules, 2002. (Condition No. 4 has been substituted vide Ntf. No. 03/2003-CE, DT. 06/01/2003) [OLD -If made from knitted or crocheted textile fabrics, whether or not processed, on which the appropriate duty of excise leviable under the First Schedule to the said Central Excise Tariff Act and the Additional Duties of Excise (Goods of Special Importance) Act, read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid and no credit of the duty paid on inputs or capital goods has been taken under rule 3 or rule 11 of the CENVAT Credit Rules, 2002.]
5	If made from knitted or crocheted textile fabrics, whether or not processed, on which the appropriate duty of excise leviable under the First Schedule to the said Central Excise Tariff Act and the Additional Duties of Excise (Goods of Special Importance) Act, read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid.
6	If made from woven or knitted or crocheted textile fabrics, whether or not processed, on which the appropriate duty of excise leviable under the First Schedule to the said Central Excise Tariff Act and the Additional Duties of Excise (Goods of Special Importance) Act, read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Tariff Act, 1975, as the case may be, has been paid.

(In above table Sl. No. 6 column 2 bold words has been amended vide Corrigendum, 13/03/2002.)

2. This notification shall have effect upto and inclusive of 31st day of March, 2003.

(Above Sl. No. 2. has been added vide Ntf. No. 16/2003-CE, Dt. 01/03/2003)

[F. No. 334/1/2002 ­TRU]

(T.R. Rustagi)
Joint Secretary to the Government of India

(Please refer Cir No. 700/16/2003-CX, Dt. 06/03/2003 - Deemed Credit and Credit of Addl. Duty –Some Clarifications)

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