Notification No. 36/2003-Central Excise, dated April 30, 2003, exempts the first clearances for home consumption of specific goods, such as fabrics made from monofilament, rubberized textiles, woven cotton belting, and mosquito net fabrics, from excise duty up to an aggregate value of ₹25 lakh for the financial year. The exemption applies to clearances made after April 1 in any given year, with a cap of ₹25 lakh for the period starting from April 30, 2003, in the 2003-2004 financial year. Conditions for eligibility include maintaining clearances from one or more factories, and the total aggregate value of all excisable goods for the year must not exceed ₹30 lakh. If this threshold is surpassed, the manufacturer must pay the applicable duty on the goods cleared beyond ₹25 lakh. Additionally, manufacturers must retain all input-related documentation, and they may choose not to avail of the exemption but must then clear the goods at the normal duty rate. Once opted out, they cannot reclaim the exemption during that financial year. The notification outlines the procedures for compliance, ensuring that manufacturers follow the regulations to benefit from the duty exemption.
30 th April, 2003
Notification No. 36/2003-Central Excise
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts first clearances for home consumption, upto an aggregate value not exceeding twenty five lakh rupees made on or after the 1st day of April in any financial year, of following goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), namely,-
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Fabrics falling under sub-heading No. 5406.10 made from monofilament of sub-heading No. 5404.10; |
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rubberized textile fabrics falling under heading No. 59.06; |
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woven and unprocessed cotton belting falling under Chapter 52 or 59; or |
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round mesh mosquito net fabrics falling under sub-heading No. 6002.43 |
(herein after referred to as the specified goods), from the whole of the duty of excise specified thereon in the First Schedule to the said Central Excise Tariff Act and First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act:
Provided that during the financial year 2003-2004, the exemption contained in this notification shall apply to the first clearances for home consumption of the specified goods, upto an aggregate value not exceeding twenty five lakh rupees made on or after the 30th day of April, 2003.
2.The exemption contained in this notification shall apply subject to the following conditions, namely,-
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(i) |
where a manufacturer clears the specified goods from one or more factories, the exemption in his case shall apply to the said aggregate value of clearances for home consumption and not separately for each factory; |
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(ii) |
where the specified goods are cleared by one or more manufacturers from a factory, the exemption shall apply to the said aggregate value of clearances for home consumption and not separately for each manufacturer; |
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(iii) |
the aggregate value of clearances for home consumption of all excisable goods, by the said manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed thirty lakh rupees in a financial year: |
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Provided that in the financial year 2003-2004, the exemption shall apply only if the aggregate value of clearances of all excisable goods, by a manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed thirty lakh rupees during the period beginning from the 30th day of April, 2003: |
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Provided further that in any financial year, if the aggregate value of clearances for home consumption of all excisable goods exceed thirty lakh rupees, or as the case may be, in the financial year 2003-2004, if the aggregate value of clearances for home consumption of all excisable goods during the period beginning from the 30th day of April, 2003 exceeds thirty lakh rupees, the said manufacturer shall pay the amount of duty as payable, on the said first clearances of the specified goods of twenty five lakh rupees, but for the exemption contained in this notification, within thirty days of the day when such clearance exceeds the said thirty lakh rupees; |
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(iv) |
the manufacturer shall keep all documents relating to purchase of inputs. |
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(v) |
the manufacturer may opt not to avail the exemption contained in this notification and clear the specified goods on payment of normal rate of duty. However, once such option has been exercised during a financial year, the said manufacturer shall not be allowed to avail the exemption during the remaining part of that financial year |
Explanation.- For the purposes of this notification,-
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(A) |
“value” means the value as determined in accordance with the provisions of section 4 of the said Central Excise Act; |
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(B) |
“normal rate of duty” means the duty of excise specified in the First Schedule to the said Central Excise Tariff Act and the First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act read with any relevant notification (other than this notification) issued under sub-section (1) of section 5A of the said Central Excise Act; |
V. Sivasubramanian
Deputy Secretary to the Government of India
F.No B3/5 /2003-TRU
