TMI BlogJammu & Kashmir Units – Exemption from Excise Duty of Specified GoodsX X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of the said goods by the said unit.] 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. Chapter of the First Schedule Description of goods Rate Description of inputs for manufacture of goods in column (3) (1) (2) (3) (4) (5) 1. 29 All goods 29 Any goods 2. 30 All go ..... 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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 balance amount in cash. 2B The exemption contained in this notification shall be given effect to in the following manner, namely:- (a) the manufacturer shall submit a statement of the total duty paid and that paid by utilization of CENVAT credit, on each category of goods specified in the said Table and cleared under this notification, to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, by the 7 th of the next m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it 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 availed of in excess of the amount determined correctly refundable under clause (e) and not reversed by the manufacturer within the period specified therein, shall be recoverable as if it is a recovery of duty of excise erroneously refunded. In case such irregular or excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods shall be considered to have been cleared without payment of duty to the extent of utilisation of such irregular o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es production. (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, necessary adjustments be made in the subsequent refunds admissible to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r who commences commercial production on or after the 1 st day of April, 2008, shall be entitled to refund at the special rate fixed under sub-paragraph (2) against his first application in respect of all clearances of excisable goods manufactured and cleared under this notification with effect from the date of commencement of such commercial production and the difference between the refund payable at such special rate and the actual refund paid to him from the date of commencement of commercial production till the date of fixation of special rate, during the period shall be refunded to him. (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 utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um number of regular employees employed at any point of time, by the concerned industrial unit, during last five years; (b) 'regular employment' shall not include employment provided by the industrial unit to daily wagers or casual employees; (c) 'new investment' shall not include investments which are used for paying off old debts or making payments for the plant or machinery installed prior to the 14th day of June 2002, or paying salaries to the employees. 4. The exemption contained in this notification shall apply to any of the said units for a period not exceeding ten years from the date of publication of this notification in the Official Gazette or from the date of commencement of commercial production whichever is later. 16 [5. The exemption contained in this notification shall not apply to such goods which have been subjected to only one or more of the following processes, namely, preservation during storage, cleaning operations, packing or repacking of such goods in a unit container or labeling or re-labelling of containers, sorting, declaration or alteration of retail sale price and have not been subjected to any other process or processes amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouseboats, Resorts, adventure and leisure sports, amusement parks, cable car, Guesthouse only in Ladakh. 14. Handicrafts 15. Precision engineering 16. Exploration of minerals Explanation:- For the removal of doubts, it is hereby declared that for the purpose of this notification, mineral does not include crude petroleum oils and the expression Exploration of mineral shall be construed accordingly. F.No. 354/173/2000-TRU (Aman Kumar Singh) Under Secretary to the Government of India ******************************** Notes: (As amended by Notifications) No. 5/2003-CE, dated 13-2-2003; No. 65/2003-CE, dated 6-8-2003; No. 11/2004-CE, dated 29-1-2004 and No. 22/2008-CE, dated 27-3-2008; No. 35/2008-CE, dated 10-6-2008 and No. 53/2008-CE, dated 3-10-2008. 1. In the preamble, for the words and figures, to the amount of duty paid by the manufacturer of goods other than the amount of duty paid by utilization of CENVAT credit under the CENVAT Credit Rules, 2002 , the words to the duty payable on value addition undertaken i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... twithstanding anything contained in paragraph 2,- (a) the manufacturer at his own option, may take credit of the amount of duty paid during the month under consideration, other than by way of utilisation of CENVAT credit under the CENVAT Credit Rules, 2002, in his account current, maintained in terms of Part V of the Excise Manual of Supplementary Instruction issued by the Central Board of Excise and Customs. 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as if it is a recovery of duty of excise erroneously refunded. In case such irregular or excess credit is utilised for payment of excise duty on clearances of excisable goods, the said goods should be considered to have been cleared without payment of duty to the extent of utilisation of such irregular or excess credit. Explanation.- For the purposes of this notification, duty paid, by utilisation of the amount 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. 35/2008-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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foresaid time, allow such manufacturer to make the application within a further period of thirty days: Provided further that the manufacturer supports his claim for a special rate with a certificate from his statutory auditor containing an estimate of value addition in the case of goods for which a claim is made, based on the audited balance sheet of the unit, for the preceding financial year; 6. For the 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. 53/2008 dated 3/10/2008 before it was read as, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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