Notification No. 36/98-CE, date : 10-12-1998G. S. R. (E) - In exercise of the powers conferred by sub-section (3) of section 3A of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby specifies that the rate of excise duty on processed textile fabrics falling under heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07, 55.11, 55.12, 55.13 55.14, or processed textile fabrics of cotton or man-made fibres, falling under heading No. 58.01, 58.02, 58.06 (except sub-heading No. 5806.20), 60.01 or 60.02 (except sub-heading No. 6002.10), of the schedule to the Central Excise Tariff Act, 1985 (5 of 1986), manufactured or produced by an independent processor with the aid of a hot-air stenter shall be
(Above para has been amended vide Central Excise Notification No.
2/99 dt. 13-1-99) (i) in the case of a processing factory whose average value of processed fabric is upto and including Rs. 30 per sq. m. 12.8 per cent of the capacity of production in value terms per chamber per month, equivalent to Rs. 1.5 lacs per chamber per month and
(ii) in the case of a processing factory whose average value of processed fabric is upto and including Rs. 30 per sq. m. 12.8 per cent of the capacity of production in value terms per chamber per month, equivalent to Rs. 2 lacs per chamber per month on the basis of the number of chambers (of a hot air stenter) and the average value of the processed textile fabrics determined under the Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 19982. The duty levied and collected on such processed textile fabrics shall be the aggregate of the duty leviable under Central Excise Act, 1944 (1 of 1944) and the Additional Duties of Excise Goods of Special Importance Act, 1957 (58 of 1957)
3. The duty levied and collected on such processed textile fabrics shall be apportioned in the ratio of 4.8:8 between the duty leviable under the Central Excise Act, 1944 (1 of 1944) and the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957)
4. Where the Commissioner of Central Excise has under sub-section(4) of section 3A of the Central Excise Act, 1944 (1 of 1944), re-determined the amount of actual production in value terms, he shall re-determine the amount of said duty payable by the assessee with reference to such actual production in value terms and the rate specified in paragraph 1 above
5. Notwithstanding anything contained above, the independent processor of processed textile fabrics shall not be eligible to avail any credit of duty paid on inputs or capital goods under the Central Excise Rules, 1944 or any notification issued thereunder
6. Nothing contained in this notification shall apply to -
(a) any goods manufactured or produced prior to the 16th day of December 1998 and cleared on or after that date;
(aa) any processed textile fabrics of cotton or man-made fibres, falling under heading Nos. 58.01, 58.02, 58.06 (except sub-heading No. 5806.20), 60.01 or 60.02 (except sub-heading No. 6002.10) of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), manufactured or produced prior to the 13th day of January, 1999 and cleared on or after that date;
(Item (aa) to para 6 has been inserted vide Central Excise Notification no. 2/99 dt. 13-1-99)
(b) a composite mill, i.e. a manufacturer or processor, who is engaged in the processing of fabrics with the aid of power along with the spinning of yarn from fibres and weaving or knitting or crocheting of fabrics within the same factor and includes a multi-locational composite mill, i.e. a public limited company which is engaged in the processing of fabrics with the aid of power along with the spinning of yarn from fibers and weaving or knitting or crocheting of fabrics in one or more factories owned by the same public limited company.
7. This notification shall come into effect from the 16th day of December, 1998.
Explanation I - Unless otherwise specified in any rule made under section 3A of the Central Excise Act, 1944 (1 of 1944), for the purposes of this notification, the goods shall be deemed to have been manufactured or produced with the aid of a hot-air stenter, if they are cleared from a factory where a hot-air stenter is installed, irrespective of whether it is in use or in working condition, or is otherwise
Explanation II - For the purposes of this notification, an independent processor means a manufacturer who is engaged primarily in the processing of fabrics with the aid of power and who also has the facility in his factory (including plant and equipment) for carrying out heat-setting with the aid of power or steam in a hot air stenter, and who has no proprietory interest in any factory engaged in the spinning of yarn or weaving or knitting of fabrics.
(Explanation II has been amended vide Central Excise Notification no. 2/99 dt. 13-1-99)
(Explanation II has been amended vide Central Excise Ntf. No.
39/98 dt. 16-12-98)
(ATUL GUPTA)
UNDER SECRETARY TO THE GOVERNMENT OF INDIA
F. No. 341/61/98-TRU
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