7th August, 2003.
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 being satisfied that it is necessary in the public interest so to do, hereby exempts twisted filament yarns (including crepe yarn), falling under Chapter 54 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), when manufactured by an independent twister, from filament yarns falling under Chapter 54 of the said First Schedule, from so much of duty of excise leviable there on under the said First Schedule and so much of special duty of excise leviable there on under the Second Schedule to the said Central Excise Tariff Act, as is in excess of the amount of the said excise duty, the said special duty of excise or, as the case may be, the additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975) already paid on such filament yarns from which such twisted filament yarns have been manufactured.
2. The exemption contained in this notification shall be subject to the following conditions, namely:-
the twisted filament yarn (including crepe yarn) is made from filament yarn on which appropriate duties of excise specified under the said First Schedule and Second Schedule or, as the case may be, additional duty leviable under section 3 of the said Customs Tariff Act, has already been paid;
the twisted filament yarn (including crepe yarn) is made from filament yarn, purchased or procured from outside the factory of production of such twisted filament yarn; and
the said independent twister maintains accounts of the receipt and use of filament yarns and manufacture and clearance of the twisted filament yarns in a manner required for ascertainment of the duties of excise paid on the filament yarn used in the manufacture of such twisted yarn.
Explanation: For the purposes of this notification, an “independent twister” means a person engaged only in twisting filament yarns but does not include the person who undertakes himself or has proprietary interest in any factory undertaking any other process such as spinning, doubling, weaving, processing of yarn or fabrics.
G. S. Karki
Under Secretary to the Government of India