Seeks to fix rate of duty in respect of specified embroidery in piece, in strips or in motifs on cotton fabrics, man made fabrics, silk fabrics or woollen fabrics

28^th June, 2001

 Notification No. 33 /2001-Central Excise

In exercise of the powers conferred by rule 15 of the Central Excise ( No. 2) Rules, 2001, the Central Government hereby specifies embroidery in the piece, in strips or in motifs on cotton fabrics, man made fabrics, silk fabrics or woollen fabrics, in respect of which an assessee shall have the option to pay the duty of excise on the basis of meter length of the machine per shift and fixes a rate of duty of Rs. 45 per meter length of the machine per shift, for embroidery machines utilised for manufacture of the said goods:

Provided that no credit of duty paid on inputs used in the manufacture of the embroidery and capital goods used within the factory of manufacture of such embroidery shall be taken under the CENVAT Credit Rules, 2001:

Provided further that the procedure mentioned hereinafter is followed.

Explanation.- In this notification-

(a) “meter length”, in relation to a machine, means the distance between the points provided for the first needle and the last needle of only one roller of such machine;

(b) “shift” means a period not exceeding eight hours working in a day, exclusive of rest interval, provided the work of the same kind is carried out by the same set of workers.

2.    Application to avail of special procedure.- (1)     A manufacturer of embroidery in the piece, in strips or in motifs (hereinafter referred to as “the embroidery”) shall make an application in the form specified in Appendix I to this notification as Appendix-I to the Superintendent of Central Excise in this behalf.

(2)    The application shall be made so as to cover a period of not less than six consecutive calendar months, but may be granted for a shorter period, for reasons to be recorded in writing by the Assistant Commissioner or the Deputy Commissioner, as the case may be.

(3)    If, at any time during such period, the manufacturer does not desire to avail himself of the special provisions contained in this notification, he shall give a notice in writing to the Assistant Commissioner or the Deputy Commissioner in charge of the factory of his intention at least one week in advance. Once the manufacturer has ceased to avail himself of such special provisions, from any date, he shall be precluded from availing himself of such provisions for a period of six months from that date.

(4) If the manufacturer desires to avail himself of the special procedures contained herein on the expiry of the period for which his application was granted, he shall, not later than a week before such expiry, make an application to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise under sub paragraph (1); and on his failure to do so, he shall, except as provided herein, be precluded from availing himself of such procedures for a period of six months from the date of such expiry.

(5) Notwithstanding anything contained in sub-paragraph (1), an application made by a manufacturer before the commencement of this notification under sub-rule(1) of rule 96ZH of the Central Excise Rules, 1944, shall be deemed to be an application made under sub-paragraph (1) and the same shall be deemed to have been granted under sub-paragraph (1) and where such application has not been granted, the Assistant Commissioner or the Deputy Commissioner shall dispose of the same as if it is an application under sub-paragraph (1).

3.    Discharge of liability for duty on payment of certain sum.-     (1)    If a manufacturer whose application has been granted under paragraph 2 pays before the commencement of any shift a sum calculated according to such rate, in the manner and subject to the conditions herein laid down, such payment shall be in full discharge of his liability for the duty leviable on his production of the embroidery during the said shift:

Provided that if there is revision in the rate of duty, the sum payable shall be recalculated on the basis of the revised rates from the date of revision and liability for duty leviable on the production of the embroidery from that date shall not be discharged unless the differential duty is paid, and in case the amount of duty so recalculated is less than the sum paid, the balance shall be refunded to the manufacturer:

(2)    The sum payable under sub-paragraph (1) shall be calculated by application of the appropriate rate to the meter length of each of the machines intended to be employed by the manufacturer during the shift.

(3) Such sum shall be paid by such manufacturer by debit in the account-current maintained under these provisions before commencement of the shift.

(4) If the payment is not made in the manner and within the time-limit herein laid down, the manufacturer shall, unless otherwise directed by the Assistant Commissioner or the Deputy Commissioner of Central Excise , and in exceptional circumstances, be liable to pay duty on his entire production of the embroidery during the shift or shifts, in respect of which the payment was to be made, at the rate specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986):

Provided that where the period of delay is upto five days, the provisions of this sub-paragraph shall have effect as if for the expression “Assistant Commissioner or the Deputy Commissioner of Central Excise” , the expression ” Superintendent of Central Excise” has been substituted.

4.    Manufacturer’s declaration and accounts.-     (1)     The manufacturer shall keep account-current with the Commissioner, of the sums payable under paragraph 3, and such account-current shall be maintained in triplicate by using indelible pencil and double sided carbon and the assessee shall periodically make credit in such account-current by cash payment into the treasury so as to keep sufficient balance in such account-current to cover the sums payable under paragraph 3.

(2) Such manufacturer shall also-

(a) maintain a Daily Stock Account in the form specified in Appendix II to this notification;

(b) intimate the Superintendent of Central Excise in writing of any change in the number, meter length and speed of the machines installed by him; and

(c) append to the monthly return in proper form prescribed under rule 12 of the Central Excise ( No. 2) Rules, 2001, two carbon copies of the Daily Stock Account duly signed.

5.    Exemption from certain provisions etc.- (1) During the period in respect of which a manufacturer has been permitted to avail himself of the procedure of this notification, he shall be exempt from the operation of the provisions of rule 8 of the Central Excise   ( No. 2) Rules, 2001.

(2) Except in accordance with such terms, conditions and limitations as the Central Government may by notification specify in this behalf, no rebate of excise duty shall be paid under rule 18 of the said Central Excise Rules, in respect of any embroidery exported out of India out of the stock produced by such manufacturer during such period.

6.    Power to condone failure to apply for special procedure.- Notwithstanding anything contained in this notification, the Additional Commissioner of Central Excise or the Joint Commissioner of Central Excise may, at his discretion and subject to such conditions as he may deem fit, apply the provisions contained in this notification to a manufacturer who has failed to avail himself of the special procedure, or to comply with any condition, laid down in this notification.

7.    Confiscation and penalty.- If any manufacturer contravenes any provision of this notification in respect of any excisable goods, then all such goods shall be liable to confiscation, and the manufacturer shall be liable to penalty under rule 25 of the Central Excise (No. 2) Rules, 2001.

8.    This notification shall come into effect on and from the first day of July, 2001.

Appendix-I

Form A S P I

Application for permission to avail of the special procedure relating to embroidery

Name of the factory/factories…………Address………………….

I/We…………..manufacturer(s) of embroidery processed at…….. taluk/tehsil……. district………………….And holders of Central Excise Registration No…………dated……hereby apply to avail myself/ourselves during the…….calendar month/the period beginning with ….. 20… and ending with ……20…… of the special procedure contained in respect of the manufacture of the embroidery specified under the notification issued under rule 15 of the Central Excise (No. 2) Rules, 2001.

2. I/We declare that the particulars of each embroidery machine installed by me/us

3. I/We hereby agree to abide by the terms and conditions of the said procedure throughout the said period.

Place:

Date:

Signature of manufacturers or his/their authorized agent(s).

                                                           Countersigned                                                                            …….of Central Excise

Range………
Circle……….

Place:
Date:

Permission granted for calendar month/the period beginning with…..and ending with…………

 Assistant Commissioner/
Deputy Commissioner of Central Excise

Place:
Date:

Appendix-II

Original
Duplicate
Triplicate

Production register-cum-account current to be maintained by the the manufacturer of embroidery working under special procedure

F. No. 354/66/2001-TRU

(T.R. Rustagi)
Joint Secretary to the Government of India