Circular No. 400/33/98-Central Excise
Government of India
Ministry of Finance
Department of Revenue, New Delhi
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 regarding-
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-CE. 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 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.
