TMI BlogModvat - Deemed Credit for yarn and fibres of Chapters 51 to 56 - Notification No. 11/96-C.E. (N.T.) - SupersededX X X X Extracts X X X X X X X X Extracts X X X X ..... inputs and the final products falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), namely :- Sl. No. Inputs Final Products (1) (2) (3) 1. (i) goods falling within heading No. 51.05 of the said Schedule (ii) goods falling within heading No. 55.01, 55.02, 55.03, 55.04, 55.05, 55.06 or 55.07 of the said Schedule (iii) goods falling within heading No. 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02, 54.03, 54.04, 54.05, 55.09, 55.10, 56.04, 56.05 or 56.06 of the said Schedule The following goods manufactured by a composite mill, namely :- (i) Processed fabrics falling within Cha-pter 52 (except sub-heading Nos. 5207.10, 5208.10 and 520 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty under section 3 of the Customs Tariff Act, 1975 (51 of 1975); or (iii) the additional duty of excise under section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), (hereinafter referred to as declared duty) shall be deemed to have been paid on the inputs declared herein and the same. (I) in case of a composite mill, shall be equivalent to the amount calculated at the rate of - (a) 40 per cent of the duty of excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944), read with any notification for the time being in force, on the final products of cotton (not containing any other textile material) declared herein. (b) 60 per cent of the duty excise leviable under the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se on any final products cleared for home consumption or for export on payment of duty and, where for any reason, such adjustment is not possible, by refund to the manufacturer subject to such safeguards, conditions and limitations as may be specified by the Central Government in the Official Gazette: Provided further that no such refund of credit of declared duty shall be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties (Drawback) Rules, 1971, or claims rebate of duty under rule 12, in respect of such duty. 4. The provisions of this notification shall not apply to a manufacturer (other than composite mill) who avails any credit in respect of inputs (other than processed fabrics when rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... funded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of the said Central Excises and Salt Act or of the rules made thereunder with intent to evade payment of duty. Explanation I :- For the purposes of this notification, "composite mill" means a manufacturer, who is engaged in the processing of fabrics with the aid of power alongwith spinning of yarn from fibres and weaving or knitting or crocheting of fabrics within the same factory. Explanation II :- For removal of doubts, it is clarified that the provisions of this notification shall not apply where processed fabric itself is used as an input for further processing. 8. This notification shall come int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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