Circular No. 400/33/98-CX dated 9/6/1998
Subject: Notification No. 22/98-CE(NT) dated 4th June, 1998 for exemption from
registration under rule 174 of the Central Excise Rules, 1944 - and
filing of declaration - instructions
I am directed to draw your attention to notification No. 22/98- CE(NT) dated 4th June,
1998 (hereinafter referred to as the said notification) issued under the provisions of
rule 174, superseding notification No. 13/92-CE (NT) dated 14.5.92. The provisions for
exemption from registration under rule 174 and filing of a "declaration" remains the
same as in the erstwhile notification 13/92-CE(NT), ibid, except the following changes
that have been brought about by notification No. 22/98-CE(NT) :-
(1) The declaration, wherever required, has to be filed only once and not
every year.
(2) Exemption From Declaration : The small manufacturers/factories availing
exemption based on "value of clearances of goods", have been exempted
from filing declaration under the said notification, if the value of
clearances from one or more factory of a manufacturer or by one or more
manufacturers from one factory, do not exceed the "specified limit".
2. The expressions, "Full exemption limit" and Specified limit" used in the said
notification amplified:
(a) The term full exemption limit" has already been defined in the said
notification. To amplify, under notification No. 8/98-CI dated 2.6.98
the full exemption limit is Rs. 50 lakhs. Similarly, in respect of other
notifications, where exemption is based on the value of clearances, the
value upto which goods are wholly exempted from payment of excise duty
will be considered as full exemption limit".
(b) The expression "specified limit" has been defined in the Explanation
to the said notification i.e. full exemption limit minus ten lakh
rupees. For example, under notification No. 8/98-CE dated 2.6.98, the
specified limit will be Rs. 40 lakhs.
3. Since large number of small scale manufacturers are expected to benefit from this
simplification of procedure, wide publicity should be given to these changes with the
help of trade notices and the local media. The field formations may be suitably
instructed regarding implications of these changes.
Sd/-
(P.K. Sinha)
Under Secretary to the Govt. of India
F.N0.212/08/98-CX.6
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