CIR NO.757/73/2003-CX, DT. 22/10/2003

Central Excise Registration - Ntf. No. 49/2003-CE and No. 50/2003-CE, Dt. 10/06/2003

I am directed to refer to Notifications No.49/2003-CE and No.50/2003-CE, both dated 10.06.2003 vide which, inter alia, the goods manufactured by new industrial units which have commenced production on or after the 7th January, 2003 or by existing industrial units which have undertaken substantial expansion by way of increase in installed capacity as per the provisions contained in said notifications and set up in the State of Himachal Pradesh and Uttaranchal have been exempted from payment of excise duty. Subsequent to the issue of said notifications, certain references have been received from trade and field formations seeking to clarify as to whether such units are required to be registered with central excise or not.

2. The matter has been examined by Board. Under Notification No.36/2001-CE (NT) dated 26th June, 2001, certain categories of persons have been exempted from Central Excise registration subject to the fulfilment of specified conditions. One of the conditions is that the manufacturer who claims exemption from registration, makes a declaration in the specified format. Such declaration would, inter alia, contain the grounds of exemption and the details of the Notification vide which the exemption from payment of excise duty on the goods manufactured by it is being claimed. Similarly, the existing units undertaking substantial expansion of the installed capacity on or after 7th January, 2003 and registered with Central Excise and now claiming exemption from payment of excise duty under the said notifications shall have to file suitable amendment to information furnished already at the time of initial Registration. In other cases, where an existing unit is not registered claiming exemption under rule 9 of Central Excise Rules, 2002 and availing benefits of the said notifications, the manufacturer is required to intimate any change in the information furnished already in their declaration. Therefore, the manufacturer who seeks to avail the benefit of exemption Notifications No. 49/2003-CE or No. 50/2003-CE, both dated 10.06.2003 has to furnish the information including the reference to the notifications under which goods are exempted and the grounds of exemption to the Department in terms of Annexure to Notification No. 36/2001-CE (NT). The jurisdictional officer should be in a position to exercise suitable checks wherever necessary.

3. It is, therefore, clarified that the new industrial units set up in Himachal Pradesh and Uttaranchal on or after 7th January, 2003 or the existing units undertaking substantial expansion of the installed capacity in these areas and seeking to claim exemption from payment of excise duty by availing the benefits of the Notifications No. 49/2003-CE and No. 50/2003-CE, both dated 10th June, 2003 may avail the benefit under notification No. 36/2001-CE (N.T.) dated 26.06.2001 as amended, as indicated above. In this connection, para 5.1 of Part I of Chapter 2 of Central Excise Manual as issued by the Board on 01.09.2001 may also be referred to.

4. The field formations may suitably be informed.

5. Receipt of this Circular may please be acknowledged.

6. Hindi version will follow.

Yours faithfully,

(NEERAV KUMAR MALLICK)
Under Secretary to the Government of India.

F.No. 201/54/2003-CX.6

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