TMI Blog5 Year Excise Free Holiday for Units in Kutch District of GujaratX X X X Extracts X X X X X X X X Extracts X X X X ..... able on value addition undertaken in the manufacture of the said goods by the said unit] Provided that in the case of a unit having an original value of investment in plant and machinery installed in the factory below rupees twenty crore on the date of commencement of commercial production in that unit, the exemption contained herein shall apply only for the first clearances upto an aggregate value not exceeding twice the value of such investment from the date of commencement of commercial production, in each year. 2 [2. The duty payable on value addition shall be equivalent to the amount calculated as a percentage of the total duty payable on the said excisable goods of the description specified in column (3) of the Table below (hereinafter referred to as the said Table) and falling within the Chapter of the said First Schedule as are given in the corresponding entry in column (2) of the said Table, 3 when manufactured starting from inputs specified in the corresponding entry in column (5) of the said Table in the same factory, at the rates specified in the corresponding entry in column (4) of the said Table: 4 TABLE S.No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds or Glycerine 75 Crude palm kernel, coconut, mustard or rapeseed oil 15B 72 Ferro alloys, namely, ferro chrome, ferro manganese or silico manganese 75 Chrome ore or manganese ore] 16. Any chapter Goods other than those mentioned above in S.Nos.1 to 15 36 Any goods Provided that where the duty payable on value addition exceeds the duty paid by the manufacturer on the said excisable goods, other than the amount paid by utilization of CENVAT credit during the month, the duty payable on value addition, shall be deemed to be equal to the duty so paid other than by CENVAT credit. 2A In cases where all the goods produced by a manufacturer are eligible for exemption under this notification, the exemption contained in this notification shall be subject to the condition that the manufacturer first utilizes whole of the CENVAT credit available to him on the last day of the month under consideration for payment of duty on goods cleared during such month and pays only the bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case may be, by the 15 th of the month in which the credit has been so taken; (e) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, after such verification, as may be deemed necessary, shall determine the amount correctly refundable to the manufacturer and intimate to the manufacturer by the 15th day of the next month to the month in which the statement under clause (d) has been submitted. In case the credit taken by the manufacturer is in excess of the amount determined, the manufacturer shall, within five days from the receipt of the intimation, reverse the said excess credit from the account current maintained by him. In case, the credit taken by the manufacturer is less than the amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount; (f) in case the manufacturer fails to comply with the provisions of clauses (a) to (e), he shall forfeit the option, to take credit of the amount calculated in the manner specified in sub-paragraph 2 in his account current on his own, as provided for in clauses (a) to (c); (g) the amount of the credit availed irregularly or avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based on the audited balance sheet of the unit for the preceding financial year: (1A) Nothing contained in sub-paragraph (1) shall apply to a unit manufacturing goods falling under Serial Nos. 12, 13, 14 or 15 of the Table. (2) On receipt of the application referred to in sub-paragraph (1), the Commissioner of Central Excise or Commissioner of Customs and Central Excise, as the case may be, after making or causing to be made such inquiry as he deems fit, shall fix the special rate within a period of 6 three months of such application; (3) Where the manufacturer desires that he may be granted refund provisionally till the time the special rate is fixed, he may, while making the application, apply to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, in writing for grant of provisional refund at the rate specified in column (4) of the said Table for the goods of description specified in column (3) of the said Table and falling in Chapter of the First Schedule of the Central Excise Tariff Act, 1985 (5 of 1986) as in corresponding entry in column (2) of the said Table, and on finalization of the special rate, necessar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect from the 1 st day of April, 2008. (6) Where a special rate is fixed under sub-paragraph (2), the refund payable in a month shall be equivalent to the amount calculated as a percentage of the total duty payable on such excisable goods, at the rate so fixed: Provided that the refund shall not exceed the amount of duty paid on such goods, other than by utilization of CENVAT credit.] 9 2.2 (1)In case the total amount of refund paid or payable to a manufacturer in respect of goods cleared from a unit during a financial year is less than the total duty paid by him on the said goods, other than the amount paid by utilization of CENVAT credit, for the year, the differential amount, if any, shall be refunded to him subject to the condition that the total refund made to him during the year, including the aforesaid differential amount, does not exceed the total duty payable on value addition whether at the rate specified in the Table or at the special rate fixed under paragraph 2.1. (2) The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall refund the differential amount, if any, to the manufacturer not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of twenty four per cent. per annum, as if no exemption were available to those clearances under this notification. (vi) The exemption shall apply for a period not exceeding five years from the date of commencement of commercial production by the unit. 4. Nothing contained in this notification shall apply to a manufacturer or a factory availing of exemption under any of the following notifications, namely:- (a) Notification No.8/2003-CE, dated the 1st of March, 2003; (b) Notification No.9/2003-CE, dated the 1st of March, 2003; and [(c) Omitted] Explanation I.- For the purpose of this notification,- (i) a change in the name or in the nature of ownership or a change in location of an existing unit would not entitle anyone for treatment as a new industrial unit. (ii) the expression set up on or after the date of publication of this notification in the Official Gazette but not later than the 31st day of December, 2005 shall mean that,- (a) any civil construction work on its factory premises and any installation of plant and machinery therein commences only on or after the date of publication of this notification in the Official Gazette; and (b) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise Tariff Act, 1985 (5 of 1986). T.R. Rustagi Joint Secretary to the Government of India F.No.356/2/2001-TRU ****************************** Notes: (As amended by Notifications) No. 42/2001-CE, dated 21-9-2001; No.45/2002-CE, dated 2-9-2002; No. 60/2002-CE, dated 19-12-2002; No. 5/2003-CE, dated 13-2-2003; No. 16/2003-Ce, dated 1-3-2003; No. 65/2003-CE, dated 6-8-2003; No. 9/2004-CE, dated 21-1-2004; No. 55/2004-CE, dated 9-11-2004; No. 16/2008-CE, dated 27-3-2008; No. 33/2008-CE, dated 10-6-2008 and No. 51/2008-CE, dated 3-10-2008. 1. In the preamble, for the words and figures, to the amount of duty paid by the manufacturer of the goods other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2001 , the words to the duty payable on value addition undertaken in the manufacture of the said goods by the said unit has been substituted vide notification no. 16/2008 CE dated 27-3-2008 w.e.f. 1-4-2008 2. Paragraphs no. 1A, 2 and 3A has been substituted vide notification no. 16/2008 CE dated 27-3-2008 w.e.f. 1-4-2008, before substitution these were read as under: [1A. In cases where all the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Such amount credited in the account current may be utilised by the manufacture for payment of duty, in the manner specified under rule 8 of the Central Excise Rules, 2002, in subsequent months, and such payment should be deemed to be payment in cash; Provided that where the exemption contained in this notification is not applicable to some of the goods produced by a manufacturer, the amount of such credit shall not exceed the amount of duty paid less the amount of the CENVAT Credit availed of, in respect of the duty paid on the inputs used in or in relation to the manufacture of goods cleared under this notification.; (b) the credit of duty paid during the month under consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, may be taken by the manufacturer in his account current, by the seventh day of the month following the month under consideration; (c) a manufacturer who intends to avail the option under clause (a), shall exercise his option in writing for availing such option before effecting the first clearance in any financial year and such option shall be effective from the date of exercise of the option and shall not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt credited in the account current, shall be taken as payment of duty by way other than utilisation of CENVAT credit under the CENVAT Credit Rules, 2002.] 3. Has been inserted vide Notification No. 33/2008-Central Excise dated the 10th June, 2008. 4. Has been substituted vide Notification No. Supra before the table was read as, S.No. Chapter of the First Schedule Description of goods Rate (1) (2) (3) (4) 1. 29 All goods 29 2. 30 All goods 56 3. 33 All goods 56 4. 34 All goods 38 5. 38 All goods 34 6. 39 All goods 26 7. 40 Tyres, tubes and flaps 41 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... words six months , the words three months has been substituted vide Notification No. Supra 7. Has been substituted vide Notification No. Supra before it was read as 5. The manufacturer shall be entitled to refund at the special rate fixed under sub-paragraph (2) in respect of all clearances of excisable goods manufactured and cleared under this notification with effect from the date on which the application referred to at sub-paragraph (1) was filed with the Commissioner of Central Excise or Commissioner of Central Excise and Customs, as the case may be. 8. Has been inserted vide Notification No. Supra 9. Has been inserted vide Notification No. Supra 10. Has been substituted vide Notification No. 51/2008 dated 3/10/2008 before it was read as, 12. 25 Cement or cement clinker 75 Limestone and gypsum 11. Has been substituted vide Notification No. 51/2008 dated 3/10/2008 before it was read as, 13. 17 or 35 Modified starch/glucose 75 Maize 12. Has been added ..... X X X X Extracts X X X X X X X X Extracts X X X X
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