Notification No- 05/2006-CE dated 1.3.2006
Exempts excisable goods of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)
G.S.R. 95(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 excisable goods of the description specified in column (3) of the Table below and falling within the Chapter, heading or sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Central Excise Tariff Act), as are given in the corresponding entry in column (2) of the said Table, from so much of the duty of excise specified thereon under the First Schedule to the Central Excise Tariff Act, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table subject to the relevant conditions specified in the Annexure to this notification, and the Condition number of which is referred to in the corresponding entry in column (5) of the Table aforesaid.
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Explanation.-For the purposes of this notification, the rates specified in column (4) of the said Table are ad valorem rates, unless otherwise specified.
Table
| S.No. | Chapter or heading or subheading or tariff item of the First Schedule | Description of excisable goods | Rate | Condition No. |
| (1) | (2) | (3) | (4) | (5) |
| 1. | 5402, 5403 or 5406 | All goods | 8% | – |
| 2. | 5501, 5502, 5503, 5504, 5505, 5506 or 5507 | All goods | 8% | – |
| 3. | 63 | Mosquito nets impregnated with insecticide | Nil | — |
| 4. | 64 | Footwear subjected to any one or more of the following processes, namely:
(i) packing or repacking; or Explanation—For removal of doubts, it is clarified that this exemption shall not apply if any of the processes mentioned above results in alteration in the retail sale price already declared on the footwear. |
Nil | 1 |
| 5. | 64 | The following goods, namely:-
(a) Footwear of retail sale price not exceeding Rs.250 per pair |
Nil | 2 |
| (b) Footwear of Retail Sale Price exceeding Rs.250 and not exceeding Rs.750 per pair
Explanation.- “Retail Sale Price means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and the price is the sole consideration for the sale. |
8% | 2 | ||
| 6. | 6603 | Parts of walking sticks, seat sticks, whips, ridingcrops and the like | 8% | — |
| 7. | 68 or 69 | Stoneware, which are only salt glazed | Nil | — |
| 8. | 68 or 69 | Sand lime bricks | Nil | — |
| 9. | 68 | Goods in which not less than 25% by weight of fly ash or phospho-gypsum or both have been used | 8% | 3 |
| 10. | 68 (except 6804, 6805, 6811, 6812 and 6813) | Goods, in which more than 25% by weight of red mud, press mud or blast furnace slag or one or more of these materials, have been used, manufactured at the site of construction for use in construction work at such site | Nil | — |
| 11. | 68 (except 6804, 6805, 6811, 6812 and 6813) | Goods, in which more than 25% by weight of red mud, press mud or blast furnace slag or one or more of these materials, have been used, manufactured by Nirman Kendras and Nirmithi Kendras | Nil | 4 |
| 12. | 69 | Ceramic tiles 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 | Nil | 5 and 6 |
| 13. | 69 | Ceramic tiles, manufactured in a factory not using ele ctricity for firing the kiln. | 8% | 7 |
| 14. | 69051000 | Roofing tiles | 8% | — |
| 15. | 6908, 6909, 6911, 6912 or 6914 | All goods other than glazed tiles and broken glazed tiles, manufactured by a manufacturer exclusively engaged in the process of printing, decorating or ornamenting of the said goods.
Explanation.-For the purposes of this entry, the value of goods shall be the value charged for printing, decorating or ornamenting of the said goods. |
16% | 5 |
| 16. | 70 | Glassware produced by mouth-blown process | Nil | — |
| 17. | 70 | Optical glass manufactured by the Central Glass and Ceramic Research Institute, Kolkata and intended for use by any Department of the Central Government. | Nil | — |
| 18. | 7009, 7010, 7011, 70200019, 70200029, 70181090, 70182000 | All goods manufactured by a manufacturer exclusively engaged in the process of printing, decorating or ornamenting of the said goods.
Explanation.-For the purposes of this entry, the value of goods shall be the value charged for printing, decorating or ornamenting of the said goods. |
16% | 5 |
| 19. | 7013 | All goods (other than Table and kitchenware of Glass) manufactured by a manufacturer exclusively engaged in the process of printing, decorating or ornamenting of the said goods.
Explanation.-For the purposes of this entry, the value of goods shall be the value charged for printing, decorating or ornamenting of the said goods. |
16% | 5 |
| 20. | 70151010 | Rough ophthalmic blanks, for manufacture of optical lenses | 8% | — |
| 21. | 71 | Primary gold converted with the aid of power from any form of gold
Explanation.-For the purposes of the exemption, “primary gold” means gold in any unfinished or semifinished form and includes ingots, bars, blocks, slabs, billets, shots, pe llets, rods, sheets, foils and wires. |
Nil | — |
| 22. | 7105 or 7112 | Dust and powder of natural or synthetic precious or semi-precious stones; waste and scrap of precious metals or metals clad with precious metals, arising in course of manufacture of goods falling in Chapter 71 | Nil | — |
| 23. | 7108 | Gold arising in the course of manufacture of copper or zinc by smelting | Nil | — |
| 24. | 71 | (I) Articles of— (a) gold, (b) silver, (c) platinum, (d) palladium, (e) rhodium, (f) iridium, (g) osmium, or (h) ruthenium; |
Nil | 8 |
| (II) Ornaments and the like articles made of gold or silver or platinum or any one or more of them, whether or not set— (a) with stones or gems (real or artificial), or with pearls (real, cultured or imitation); or (b) with stones, gems and pearls of the kind mentioned at (a) or any combination thereof; |
Nil | 8 | ||
| (III) Strips, wires, sheets, plates and foils of gold, used in the manufacture of articles of jewellery and parts thereof; | Nil | — | ||
| (IV) Precious and semi-precious stones, synthetic stones and pearls | Nil | — | ||
| Explanation.-For the purposes of entries (I), (II) and (III), as the case may be,-
(i) “ornament” means a thing, in any finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship, made of, or manufactured from, gold or silver or platinum or any one or more of them, whether or not set with stones or gems (real or artificial) or with pearls (real, cultured or imitation), or with all or any of them and includes parts, pendants or broken pieces of ornaments; (ii) “metal” shall include,— (a) any alloy in which any of the metals specified in this entry at item No.(I) above predominates by weight over each of the other metals specified in such item or any other metal in such alloy; (b) any alloy in which the gold content is not less than 37.5 per cent by weight; (iii) “articles” in relation to gold shall mean any thing (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, pe llets, rods, sheets, foils and wires. |
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| 25. | 71 | Silver, platinum, palladium, rhodium, iridium, osmium and ruthenium in their primary forms, that is to say, any unfinished or semi-finished form including ingots, bars, blocks, slabs, billets, shots, pellets, rods, sheets, foils and wires. | Nil | — |
| 26. | 7113 | Article of jewellery on which brand name or trade name is indelibly affixed or embossed on the articles of jewellery itself | 2% | — |
| 27. | 7117 | All goods | 8% | — |
| 28. | 72 | Hot rolled or cold rolled sheets and strips cut or slit on job work | Nil | 5 and 9 |
| 29. | 73 | Castings and forgings, cleared for manufacture of sewing machines or chaff cutters (whether known as toka machine or by any other name) used for cutting animal fodder | Nil | 10 |
| 30. | 7302 or 8530 | Railway or tramway track construction material of iron and steel
Explanation.-For the purposes of this exemption, the value of goods shall be the value of goods excluding the value of rails. |
16% | 11 |
| 31. | 7310 or 7326 | Mathematical boxes, geometry boxes and colour boxes | Nil | — |
| 32. | 7315 | Chains of vehicles of heading 8712. | Nil | — |
| 33. | 73170011 | Animal shoe nails | Nil | — |
| 34. | 7321 or 7417 | Kerosene burners, kerosene stoves and wood burning stoves of iron or steel, copper or copper alloy | Nil | — |
| 35. | 7321 or 9405 | Bio-gas lights, bio-gas stoves and hot plates of iron or steel, specially designed to operate using bio-gas | Nil | — |
| 36. | 732111 | LPG Gas stoves (with burners only, without other functions such as grills or oven) | 8% | — |
| 37. | 73261990 | Forgings and forged products of iron or steel used in the manufacture of parts and accessories of cycle and cycle rickshaws falling under Chapter 40, 73, 83, 85, 87 or 95 | Nil | — |
| 38. | 73262010 | Tyre bead wire rings intended for use in manufacture of tyres for cycles and cycle -rickshaws | Nil | — |
| 39. | 7323 or 76151910 | Pressure cookers | 8% | — |
| 40. | 7402 or 7403 | Unrefined copper and unwrought copper, intended for use in the manufacture of utensils or handicrafts. | Nil | 12 |
| 41. | 7409 | All goods other than trimmed or untrimmed sheets or circles of copper, intended for use in the manufacture of utensils or handicrafts | Nil | 12 |
| 42. | 7409 | Trimmed or untrimmed sheets or circles of copper, intended for use in the manufacture of handicrafts or utensils | Rs. 3500 per metric tonne | 12 and 13 |
| 43. | 7409 or 7410 | Copper strip and foil, intended to be used for manufacture of imitation “Zari” | Nil | — |
| 44. | 7601 | Unwrought aluminium, whether or not alloyed, intended for use in manufacture of utensils | Nil | 14 |
| 45. | 7604 or 7608 or 76090000 | Aluminium extrusions, square tubes and round tubes of aluminium used in the manufacture of— (1) artificial limbs; or (2) any of the following rehabilitation aids, namely:- (i) Somi brace (ii) Ash brace (iii) Taylor brace (iv) Four post collars (v) Thumb splint (vi) Finger splint (vii) Axilla crutches (viii) Elbow crutches (ix) Walking frames (x) Wheel chair or Tricycle components (xi) Braille shorthand machine (xii) Folding cane for blind |
Nil | 15 |
| 46. | 7606 | Aluminium plates and sheets (other than circles), intended for use in manufacture of utensils | Nil | 5 and 14 |
| 47. | 7606 | Aluminium circles | Rs. 2500 per metric tonne | 5 and 14 |
| 48. | 82 | Pencil sharpeners and blades thereof | Nil | — |
| 49. | 8201 | All goods except pruners | Nil | — |
| 50. | 82 | Tools of two or more of the headings 8202 to 8205, put up in sets | Nil | 16 |
ANNEXURE
| Condition No. | Conditions |
| 1. | If manufactured out of footwear-
(i) bearing a brand name or trade name of any person; (ii) in respect of which the retail sale price has been declared; and (iii) in which the appropriate duty of excise under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) or as the case may be, the additional customs duty under the Customs Tariff Act, 1975 (51 of 1975) has already been paid. |
| 2. | This exemption shall apply only to such footwear on which the retail sale price is indelibly marked or embossed on the footwear itself. |
| 3. | If the manufacturer maintains proper account in such form and in such manner as the Commissioner of Central Excise having jurisdiction may specify in this behalf, for receipt and use of fly-ash or phosphogypsum or both, in the manufacture of all goods falling under Chapter 68 of the First Schedule and files a monthly return in the form and manner, as may be specified by such Commissioner of Central Excise, with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction. |
| 4. | If the Nirman Kendra or the Nirm ithi Kendra produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India in the Ministry of Urban Development, to the effect that-
(a) the said Nirman Kendra or the said Nirmithi Kendra is recognised as such by the Government of India; and (b) the goods manufactured by such Nirman Kendra or Nirmithi Kendra are intended for construction of low cost houses. |
| 5. | If no credit under rule 3 or rule 11 of the CENVAT Credit Rules, 2002, has been taken in respect of the inputs or capital goods used in the manufacture of these goods.
Explanation.- For the removal of doubts, it is hereby clarified that in respect of the goods specified in column (3) of the Table occurring against S. No.122, this condition is intended to have been satisfied if no credit of duty paid on,- (i) the inputs; and (ii) the capital goods used exclusively in the manufacture of these goods, in accordance with sub-rule (4) of rule 6 of the CENVAT Credit Rules, 2002, has been availed under rule 3 or rule 11 of the CENVAT Credit Rules, 2002. |
| 6. | If, manufactured out of ceramic tiles, falling under Chapter 69 of the First Schedule, 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 has already been paid. |
| 7. | If no credit of the duty paid on the inputs used in or in relation to the manufacture of such ceramic tiles has been taken under rule 3 or rule 11 of the CENVAT Credit Rules, 2002. |
| 8. | This exemption shall not be applicable to articles of jewellery of heading 7113 on which brand name or trade name is indelibly affixed or embossed on the articles of jewellery itself. |
| 9. | If such goods are not produced or manufactured by a manufacturer who produces or manufactures steel from iron ore or concentrate. |
| 10. | If, –
(a) the castings and forgings produced in a factory are used in that factory for the production of sewing machines or chaff cutters; or (b) the castings or forgings are supplied directly from the factory of manufacture, to the factory of a manufacturer of sewing machines or chaff cutters and the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction is satisfied that the castings or forgings are intended for use in the manufacture of sewing machines or chaff cutters. |
| 11. | If manufactured out of rails on which duty of excise has been paid and no credit of duty paid on such rails has been taken under rule 3 or rule 11 of the CENVAT Credit Rules, 2002. |
| 12. | If such goods are not produced or manufactured by a manufacturer who produces or manufactures copper from copper ore or copper concentrate. |
| 13. | If,-
(a) no credit of duty paid on inputs under rule 3 or rule 11 of the CENVAT Credit Rules, 2002 has been taken; (b) the entire amount of duty is paid in cash or through accountcurrent: Provided that the duty shall not be payable by a manufacturer who produces or manufactures trimmed sheets or circles from duty paid untrimmed sheets or circles. |
| 14. | If such goods are not produced or manufactured by a manufacturer who produces or manufactures aluminium from aluminium ore or aluminium concentrate. |
| 15. | Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed. |
| 16. | If manufactured from goods falling within heading 8202 to 8205 of the First Schedule to the Central Excise Tariff Act, 1985, on which duty of excise specified in the First Schedule or the additional duty leviable under the Customs Tariff Act, 1975, as the case may be, has already been paid. |
[F.No.334/3/2006-TRU]
(Ajay)
Under Secretary to Government of India
