Section 5A of the Central Excise Act, 1944 – Power to grant exemption from duty of excise – Exemption to specified excisable goods

NOTIFICATION NO. 1/2011-CENTRAL EXCISE

DATED 1-3-2011

G.S.R.116(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, on being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in column (3) of the Table below and falling under Chapter, heading, sub-heading or tariff item 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, from so much of the duty of excise leviable thereon under the said Central Excise Act, as is in excess of the amount calculated at the rate of 1% ad valorem :

Provided that nothing contained in this notification shall apply to the goods in respect of which credit of duty on inputs or tax on input services has been taken under the provisions of the CENVAT Credit Rules, 2004.

Table

S.No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of the excisable goods
(1) (2) (3)
1 1302 19 20, 1302 19 30 Cashew shell liquid (CNSL)
2 1404 90 50 Indian Katha
3 1501 00 00 All goods
4 1502 All goods
5 1503 00 00 All goods
6 1504, 1505, 1506 All goods
7 1516 10 00 All goods
8 151710 Margarine
9 16 All goods
10 1901 10 All goods put up in unit containers
11 1902 other than 1902 40 10 and 1902 40 90 All goods
12 1903 00 00 All goods
13 1904 10 20 Paws, Mudi and the like
14 20 All goods
15 2101 Coffee or tea pre-mixes
16 2103 Sauces, ketchup and the like and preparations therefor
17 2104 Soups and broths and preparations thereof
18 2105 00 00 All goods
19 2106 90 All kinds of food mixes, including instant food mixes
20 2106 90 30 Betelnut product known as ‘supari’
21 2106 90 92 Sterilized or Pasteurised miltone
22 2106 90 99 (i) Ready to eat packaged food,(ii) Milk containing edible nuts with sugar or other ingredients
23 2202 90 10 All goods
24 2202 90 20 All goods
25 2202 90 30 Flavoured Milk of Animal origin
26 2202 90 90 Tender coconut water
27 26 or any chapter Fly ash
28 2701 All goods
29 2702 All goods
30 2703 All goods
31 2704 All goods
32 2706 All goods
33 28 or 38 Silicon in all forms
34 2847 00 00 Medicinal grade hydrogen peroxide
35 28,29 or 30 Anaesthetics
36 28 Potassium Iodate
37 30 Medicaments  (including  those  used  in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems), manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of 1940) or Homeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homeopathic Pharmacopoeia, as the case may be, and sold under the name as specified in such books or pharmacopoeia
38 30 Intravenous fluids, which are used for sugar, electrolyte or fluid replenishment
39 3002 20 or 3002 30 00 Vaccines (other than those specified under the National Immunisation Program)
40 31 All goods, other than those which are clearly not to be used as fertilisers
41 3215 90 10 Fountain pen ink
42 3215 90 20 Ball pen ink
43 3215 90 40 Drawing ink
44 3306 10 10 Tooth Powder
45 3406 00 10 Candles
46 3824 50 10 Ready-mix concrete(RMC)
47 39 Products  of  jute  and  phenolic  resins manufactured by pultrusion process, containing at least forty per cent by weight of jute
48 3903 Unexpanded polystyrene beads purchased by the Malaria Research Centre
49 3916 10 20, 3916 20 11, 3916 20 91 or 3916 90 10 Canes of polymers, plastics or vegetable products
50 39 or 40 Nipples for feeding bottles
51 4015 Surgical rubber gloves or medical examination rubber gloves
52 44 or any Chapter Resin bonded bamboomat board, with or without veneer in between
53 4410 or 4411 Coir composite boards, coir matting boards, coir boards
54 4601 All goods
55 4602 All goods
56 4701 00 00 All goods
57 4702 00 00 All goods
58 4703 All goods
59 4704 All goods
60 4705 All goods
61 4706 All goods
62 48 or any chapter Leather board
63 4802 Writing or printing paper for printing of educational textbooks
64 4802 Paper or paperboard, in the manufacture of which,—(i) the principal process of lifting the pulp is done by hand; and

(ii) if power driven sheet forming equipment is used, the Cylinder Mould Vat does not exceed 40 inches

65 4817 Letters, envelops, lettercards and plain postcards
66 4818 40 10 All goods
67 4818 40 90 All goods
68 4820 Notebooks and exercise books
69 4909 All goods
70 4910 All goods
71 5601 10 00 All goods
72 57 The following goods, namely:—(a) Hand-made carpets, whether or not any machines have been used to achieve better finish during pre-weaving or post weaving operations;

(b) Carpets and other textile floor coverings, knotted, woven, tufted or flocked of coconut fibres (coir) or jute, whether or not made up, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of machines; and

(c) Other carpets and other textile floor coverings of coconut fibres (coir) or jute, whether or not made up.

Explanation.- For the purpose of Chapter 57 the term “machines” shall not include manually operated implements, used independently by hand, such as hooking guns, tufting guns and knitted guns.

73 5805 All goods
74 5807 All goods
75 5906 10 00 Adhesive tapes of a width not exceeding 20 cm
76 6305 Laminated jute bags
77 6602 00 00 All goods
78 68 or 69 Sand lime bricks
79 69 Burnt Clay tiles conforming to IS specification No.3367-1975
80 69 Ceramic tiles, on which the appropriate duty of excise under the First Schedule, or as the case may be, the additional duty leviable under the Customs Tariff Act, 1975 (51 of 1975) has already been paid, subjected to the process of printing, decorating or ornamenting in a factory which does not have the facilities (including plant and equipment) of producing ceramic tiles.
81 6901 00 10 All Goods
82 6904 10 00 All goods
83 6905 10 00 Roofing tiles
84 70 Glassware produced by mouth –blown process
85 7015 10 Glasses for corrective spectacles and flint buttons
86 7020 00 11, 7020 00 12 or 7020 00 21 All Goods
87 7104 10 00 All goods
88 7113 Articles of jewellery manufactured or sold under a brand nameExplanation – 1. For the purpose of this exemption, “brand name” means a brand name or trade name, whether registered or not, that is to say, a name or a mark, such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to a product, for the purpose of indicating, or so to indicate, a connection in the course of trade between the product and some person using such name or mark with or without any indication of the identity of that person.

2. Hallmarking of the jewellery shall not be considered to be branding.

3. An identity put by a jeweller or the job worker, commonly known as ‘house-mark’ shall not be considered as brand name.

89 7114 Articles, other than jewellery, of—(a) gold,

(b) silver,

(c) platinum,

(d) palladium,

(e) rhodium,

(f) iridium,

(g) osmium, or

(h) ruthenium,

manufactured or sold under a brand name.

Explanation. – 1. For the purpose of this exemption, “brand name” means a brand name or trade name, whether registered or not, that is to say, a name or a mark, such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to a product, for the purpose of indicating, or so to indicate, a connection in the course of trade between the product and some person using such name or mark with or without any indication of the identity of that person.

2. An identity put by a jeweller or the job worker, commonly known as ‘house-mark’ shall not be considered as brand name.

3. “articles” in relation to gold shall mean anything (other than ornaments), in a finished form, made of, or manufactured from or containing, gold and includes any gold coin and broken pieces of an article of gold but does not include primary gold, that is to say, gold in any unfinished or semi-finished form including ingots, bars, blocks slabs, billets, shots, pellets, rods, sheets, foils and wires.

90 7310 or 7326 or any other Chapter Mathematical boxes, geometry boxes and colour boxes, pencil sharpeners
91 7321 or 7418 19 or 7419 99 Kerosene burners, kerosene stoves and wood burning stoves of iron or steel, copper or copper alloy
92 7319 Sewing needles
93 7323 or 7418 or 7615 All goods other than parts and pressure cookers
94 8215 All goods
95 8421 21 20 Water filters functioning without electricity and replaceable kits thereof
96 844250 Printing blocks and printing types
97 8452 Sewing machines other than those with inbuilt motors
98 8479 Briquetting plant and machinery using agri-municipal waste
99 8479 Composting Machines
100 8517 or 8525 60 Mobile handsets including Cellular Phones and Radio trunking terminals
101 8517 Wireless data modem cards with PCMCIA or USB or PCI express ports
102 8523 The following goods, namely :—(a) Recorded audio compact discs (CDs);

(b) Recorded video compact discs (VCDs);

(c) Recorded digital video discs (DVDs);

103 8523 The following goods, namely :—(a) Sound recorded magnetic tapes of width not exceeding 6.5 millimeters, whether in spools, or reels or in other form of packing;

(b) Recorded media for television and sound recording such as video tapes and video discs;

(c) Recorded audio cassettes

104 8523 52 Recorded smart cards
105 8523 59 10 Recorded proximity cards and tags
106 8601 to 8606 All goods (except Railway track machines falling under tariff item 8640 00 00)
107 8712 Bicycles and other cycles
108 8801 All goods
109 8804 All goods
110 8805 All goods
111 8901 All goods
112 8904 All goods
113 8905 All goods
114 8906 90 00 All goods
115 9001 40, 9001 50 00, or 9001 90 90 Spectacle lenses and intraocular lenses
116 9004 90 Spectacles
117 9017 Drawing instruments
118 9017, 8486 40 00 Mathematical calculating instruments and pantographs
119 9017 Other drawing and marking out instruments
120 9027 Kits manufactured by M/s. Hindustan Antibiotics Limited, Pimpri, for testing narcotic drugs and psychotropic substancesExplanation.-For the purposes of this entry,—

(a) “narcotic drugs” and “psychotropic substances” shall have the meanings respectively assigned to them in clause (xiv) and clause (xxiii) of section 2 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985);

(b) “kits for testing narcotic drugs and psychotropic substances” means kits consisting of chemical reagents in small bottles for testing narcotic drugs and psychotropic substances manufactured by M/s. Hindustan Antibiotics Limited, Pimpri, including test tubes droppers, test plates and similar other accessories supplied with such kits

121 9301 Military weapons, other than revolvers, pistols, swords cut lasses, bayonets, lances etc.
122 9404 Coir products
123 9404 Products wholly made of quilted textile Materials
124 9405 Hurricane lanterns
125 9405 50 31 Kerosene pressure lantern
126 95 Sports goods other than articles and equipments for general physical exercise
127 9606 Buttons of plastics or base metals, not covered with textile materials; buttons of coconut shell or wood; other buttons;
128 9608 Following goods, namely :—(i) Pens of value not exceeding Rs. 200 per piece;

(ii) Ball point pens of value not exceeding Rs. 200 per piece;

(iii) Refills of ball point pens specified in (ii) above;

129 9608, 9609 Pencils, pencil leads
130 9609 Crayons, pastels, drawing charcoals, writing or drawing chalks and tailor‘s chalk

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0 Comments

  1. Marguerite Reny says:

    I’m really enjoying the design and layout of your blog. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a developer to create your theme?

  2. Dinesh says:

    What is the meaning of “All goods, other than those which are clearly not to be used as fertilizers”. I’m little bit confused with the language.What does they want to say? Why are they not using simple language?

  3. wagons says:

    i think stanless steel wagons is also exempted in 8606 of service tax tellme sir and i am a exesting manufactring ss wagons in s c railway how i pay to service tax and what is the perecentage give me a indication

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