New Delhi, dated 6th November, 2009
G.S.R (E). – Whereas the Central Government is satisfied that according to a practice that was generally prevalent regarding levy of duty of excise (including non-levy thereof) under section 3 of the Central Excise Act, 1944 (1 of 1944), the duty of excise on goods falling under Chapter 69 and heading numbers 94.01, 94.02 and 94.03 of Schedule to the Central Excise Tariff Act, 1985 (5 of 1985) (hereinafter referred to as said goods) was not being levied under section 3 of the said Central Excise Act, during the period commencing on the 1st day of September, 1987 and ending with 28th day of February, 1989;
2. Now, therefore, in exercise of the powers conferred by section 11C of the said Central Excise Act, the Central Government hereby directs that the whole of the duty of excise payable under section 3 of the said Central Excise Act on said goods but for the said practice, shall not be required to be paid in respect of said goods on which the said duty of excise were not levied during the period aforesaid in accordance with the said practice:
Provided that the following conditions are fulfilled, namely:-
(a) said goods are genuine products of a village industry;
(b) said goods have been marketed by or with the assistance of the Khadi and Village Industries Commission established under the Khadi and Village Industries Commission Act, 1956 (61 of 1956); and
(c) the manufacturer of said goods produces a certificate from the said Commission to the effect that-
(i) such goods are the genuine products of a village industry; and
(ii) such goods have been marketed by or with the assistance of the said Commission:
Provided further that the benefit under this notification shall not be admissible unless the unit claiming benefits in terms of this notification reverses the input credit, if any, taken in respect of inputs used in the manufacture of said goods on which the duty of excise was not levied during the aforesaid period in accordance with the said practice.
Explanation : For the purpose of this notification, the expression “”village industry”” shall have the same meaning as assigned to it in clause (h) of section 2 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956).
[F. No. 13/01/1991-CX 1]
Under Secretary to the Government of India