Notification No. 16/1999-CE(NT), Dt. 28/2/99

Central Excise (Fifth Amendment) Rules, 1999
G.S.R. (E).- In exercise of the powers conferred by section 37 read with sub-section (3) of section 3A of the Central Excise Act, 1944 (1 of 1944), the Central Government, hereby makes the following rules further to amend the Central Excise Rules, 1944, namely :-

1. (1) These rules may be called the Central Excise (Fifth Amendment) Rules, 1999.

(2) They shall come into force on the 28 th day of Feburary, 1999.

2. In the Central Excise Rules, 1944, (hereinafter referred to as the said rules), in rule 57F, after sub-rule (4 ), the following proviso shall be inserted, namely,-

"Provided that the Commissioner of Central Excise having jurisdiction over the factory of manufacturer of the final product who has sent the inputs or partially processed inputs outside his factory to a job-worker may, by an order in each removal of such inputs or partially processed inputs, and subject to such conditions as he may impose in the interest of revenue including the manner in which duty, if leviable, is to be paid, allow finished goods to be cleared from the premises of the job- worker."

3. In rule 57Q of the said rules, in sub-rule (1), in column (2) of the Table, against S.No. 2, for the figures ""84.24"", the figures, words and letters ""8424.10, fire extinguishers falling under sub-heading No. 8424.80, 8424.91, 8424.99"" shall be substituted.

4. In rule 57S of the said rules –

a. in sub-rule (9), for the words ""three months"", the words ""one year"" shall be substituted;

b. in sub-rule (10), for the words ""three months"", the words ""one year"" shall be substituted.

5. In rule 96ZQ of the said rules –

i. for sub-rules (5) and (6), the following sub-rules shall be substituted, namely:-

"(5) If an independent processor fails to pay the amount of duty or any part thereof by the date specified in sub-rule (3), he shall be liable to, -

i. pay the outstanding amount of duty along with interest at the rate of thirty-six per cent.per annum calculated for the outstanding period on the outstanding amount; and

ii. a penalty equal to an amount of duty outstanding from him or rupees five thousand, whichever is greater.

(6)If an independent processor removes the processed textile fabrics referred to in sub-rule (1) without complying with any of the requirements contained in sub-rule (4), then, all such goods shall be liable to confiscation and the independent processor shall be liable to a penalty equal to an amount not exceeding three times the value of such goods, or rupees five thousand, whichever is greater.";

ii. in sub-rule (7), -

(a) after clause (a), the following clause shall be inserted, namely:-""

(aa) the independent processor shall not clear non-stentered fabrics during the period for which abatement is claimed, and any clearance by him of non-stentered fabrics during such period shall be liable to confiscation;"";

(e) after clause (d), the following clauses shall be inserted, namely:-

""(e) When the claim for abatement by the independent processor is for a period less than one month, he shall be required to pay the duty, as applicable, for the entire period of one month and may subsequently seek such claim after payment of such duty.

(f)Where the claim for abatement by the independent processor is for a period of one month or more, he shall not be required to pay the duty for that period in advance.

(g)If the claim for abatement by the independent processor has been disallowed by the Commissioner of Central Excise, by a written order made in this regard, the independentprocessor shall be required to pay duty, and interest if any applicable, rior to gettingreopened the stenter sealed under clause (c) for resuming production.

Provided that the Commissioner of Central Excise may condone, for reasons to be recordedin writing, the delay in giving prior information under clause (b), if he is satisfied that such delay in giving information was caused due to unavoidable circumstances."";

iii. for Explanation I, the following Explanation shall be substituted, namely:-"

Explanation I.- For the purposes of these rules, an ""independent processor"" means a manufacturer who is engaged primarily in the processing of fabrics with the aid of ower and who also has the facility in his factory (including plant and equipment) for carrying out heat-setting or drying, with the aid of power or steam in a hot-air stenter and who has no proprietory interest in any factory primarily and substantially engaged in the spinning of yarn or weaving or knitting of fabrics, on or after the 10th December, 1998."";

Note : The principal rules were published in the Gazette of India Extraordinary vide notification No.IV D-C.E. dated the 28 th February, 1944 and last amended by notification No. 8/99-Central Excise (N.T.), dated the 10 th February, 1999 [ G.S.R 91(E), dated the 10th February, 1999]

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