Notification No 8 2002

19/06/2015 NotificationNo.8/2002CentralExcise

http://www.cbec.gov.in/excise/cxact/notfns2k2/ce82k2.htm 1/6

SSIexemptionschemeeffectivefrom1.4.2002forunitsnotavailingCenvatcredit.

1stMarch,2002

NotificationNo.8/2002CentralExcise

Inexerciseof thepowersconferredbysubsection(1)ofsection5Aof theCentralExciseAct,1944(1of1944) and in supersession of the notification of theGovernment of India in theMinistry of Finance (Department ofRevenue) No. 8/2001Central Excise, dated the 1st March, 2001, published in the Gazette of India vide numberG.S.R.133(E),datedthe1stMarch,2001,theCentralGovernment,beingsatisfiedthatit isnecessaryinthepublicinterestso todo,herebyexemptsclearances,specified incolumn (2)of theTablebelow (hereinafter referred toasthesaidTable) forhomeconsumptionofexcisablegoodsof thedescriptionspecified in theAnnexureappended tothisnotification(hereinafterreferredtoasthespecifiedgoods),fromsomuchoftheaggregateof,

(i)thedutyofexcisespecifiedthereonintheFirstScheduletotheCentralExciseTariffAct,1985(5of1986)and

(ii) thespecialdutyofexcisespecified thereon in theSecondSchedule to thesaidCentralExciseTariffAct,

as is inexcessof theamount calculatedat the rate specified in the correspondingentry in column (3)of the saidTable:

Provided that nothing contained in this notification shall apply to amanufacturer who has availed theexemptionundernotificationNo.39/2001CentralExcise,datedthe31stJuly,2001,publishedintheGazetteofIndiavidenumberG.S.R.565(E),datedthe31stJuly,2001,inthesamefinancialyear.

Table

SlNo Valueofclearances Rateofduty

(1) (2) (3)

1 First clearances upto an aggregate value notexceedingonehundredlakhrupeesmadeonorafterthe1stdayofAprilinanyfinancialyear.

Nil

2. Allclearancesofthespecifiedgoodswhichareusedas inputs for further manufacture of any specifiedgoodswithinthefactoryofproductionofthespecifiedgoods.

Nil

2.Theexemptioncontainedinthisnotificationshallapplysubjecttothefollowingconditions,namely:

(i)amanufacturerhastheoptionnottoavailtheexemptioncontainedinthisnotificationandinsteadpaythenormalrateofdutyonthegoodsclearedbyhim.Suchoptionshallbeexercisedbeforeeffectinghisfirstclearancesatthenormalrateofduty.Suchoptionshallnotbewithdrawnduringtheremainingpartofthefinancialyear

(ii) while exercising the option under condition (i), themanufacturer shall inform in writing to theDeputyCommissioner or Assistant Commissioner of Central Excise with a copy to the Superintendent of Central Excisegivingthefollowingparticulars,namely:

(a)nameandaddressofthemanufacturer

(b)location/locationsoffactory/factories



(c)descriptionofspecifiedgoodsproduced

(d)datefromwhichoptionunderthisnotificationhasbeenexercised

(e)aggregatevalueofclearancesofspecifiedgoods(excludingthevalueofclearancesreferredtoinparagraph3ofthisnotification)tillthedateofexercisingtheoption

(iii)themanufacturershallnotavailthecreditofdutyoninputsunderrule3orrule11oftheCENVATCreditRules, 2002, paid on inputs used in the manufacture of the specified goods cleared for home consumption, theaggregatevalueoffirstclearancesofwhich,ascalculatedinthemannerspecifiedinthesaidTabledoesnotexceedrupeesonehundredlakhs

(iv)themanufactureralsodoesnotutilisethecreditofdutyoncapitalgoodsunderrule3orrule11ofthesaidrules, paid on capital goods, for payment of duty, if any, on the aforesaid clearances, the aggregate value of firstclearancesofwhichdoesnotexceed rupeesonehundred lakhs,ascalculated in themanner specified in thesaidTable

(v) whereamanufacturerclearsthespecifiedgoodsfromoneormorefactories,theexemptioninhiscaseshallapplytotheaggregatevalueofclearancesmentionedagainsteachoftheserialnumbers inthesaidTableandnotseparatelyforeachfactory

(vi)wherethespecifiedgoodsareclearedbyoneormoremanufacturersfromafactory,theexemptionshallapply to theaggregatevalueofclearancesmentionedagainsteachof theserialnumbers in thesaidTableandnotseparatelyforeachmanufacturer

(vii)theaggregatevalueofclearancesofallexcisablegoodsforhomeconsumptionbyamanufacturer fromoneormorefactories,orfromafactorybyoneormoremanufacturers,doesnotexceedrupeesthreehundredlakhsintheprecedingfinancialyear.

3. For thepurposesofdetermining theaggregatevalueofclearances forhomeconsumption, the followingclearancesshallnotbetakenintoaccount,namely:

(a)clearances,whichareexemptfromthewholeoftheexcisedutyleviablethereon(otherthananexemptionbasedonquantityorvalueofclearances)underanyothernotificationoronwhichnoexcisedutyispayableforanyotherreason

(b)clearancesbearingthebrandnameortradenameofanotherperson,whichareineligibleforthegrantofthisexemptionintermsofparagraph4

(c) clearances of the specified goodswhich are used as inputs for furthermanufacture of anyspecifiedgoodswithinthefactoryofproductionofthespecifiedgoods

(d)clearancesofstripsofplasticsusedwithinthefactoryofproductionforweavingoffabricsorformanufactureofsacksorbagsmadeofpolymersofethyleneorpropylene:

Provided that theclearances forhomeconsumptionof goods falling underChapter 62of the saidFirstSchedule, whether on payment of duty or otherwise, between 1st April, 2001 and 30th April, 2001 (both daysinclusive)shallbetakenintoaccountwhilecomputingtheaggregatevalueofclearances for the financialyear20012002.

4. Theexemptioncontained in thisnotificationshallnotapply tospecifiedgoodsbearingabrandnameortradename,whetherregisteredornot,ofanotherperson,exceptinthefollowingcases:

(a)wherethespecifiedgoods,beinginthenatureofcomponentsorpartsofanymachineryorequipmentorappliances, are cleared for use as original equipment in the manufacture of the said machinery or equipment orappliancesby following theprocedure laiddown in theCentralExcise (RemovalofGoodsatConcessionalRate ofDutyforManufactureofExcisableGoods)Rules,2001:



Provided thatmanufacturers,whoseaggregate valueof clearancesof the specified goods for use asoriginalequipmentdoesnotexceed rupeesonehundred lakhs in the financial year20012002ascalculated in themannerspecifiedinparagraph1,maysubmitadeclarationregardingsuchuseinsteadoffollowingtheprocedurelaiddown in the said Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of ExcisableGoods)Rules,2001

(b)wherethespecifiedgoodsbearabrandnameortradenameof

(i)theKhadiandVillageIndustriesCommissionor

(ii)aStateKhadiandVillageIndustryBoardor

(iii)theNationalSmallIndustriesCorporationor

(iv)aStateSmallIndustriesDevelopmentCorporationor

(v)aStateSmallIndustriesCorporation

(c)wherethespecifiedgoodsaremanufacturedinafactorylocatedinaruralarea.

5.Thisnotificationshallcomeintoforceonthe1stdayofApril,2002.

Explanation.Forthepurposesofthisnotification,

(A) "brand name" or "trade name" means a brand name or a trade name, whetherregisteredornot, that is to say, anameoramark, suchas symbol,monogram, label,signatureorinventedwordorwritingwhichisusedinrelationtosuchspecifiedgoods forthepurposeofindicating,orsoastoindicateaconnectioninthecourseoftradebetweensuch specified goods and some person using such name or mark with or without anyindicationoftheidentityofthatperson

(B) wherethespecifiedgoodsmanufacturedbyamanufacturerbearabrandnameortradename,whether registeredornot,ofanothermanufactureror trader, such specifiedgoodsshallnot,merelybyreasonofthatfact,bedeemedtohavebeenmanufacturedbysuchothermanufacturerortrader

(C)"value"means,

(i)inrespectofspecifiedgoodswhichhavebeennotifiedundersection4AoftheCentralExciseAct1944,thevalueasdetermined inaccordancewith theprovisionsof thatsection,and

(ii)inrespectofspecifiedgoodsotherthanthosereferredto in sub clause (i), the value as determined in accordancewith the provisions of section 4 of the Central Excise Act,1944,orthetariffvaluefixedundersection3ofthesaidAct

(D) in the determination of the value of clearances of Chinaware or Porcelainware orboth, where a manufacturer gets Chinaware or Porcelainware or both fired in a kilnbelonging to or maintained by a Pottery Development Centre run by the CentralGovernmentoraStateGovernmentorby theKhadiandVillage Industries Commission,thevalueof theChinawareorPorcelainwareorboth,belonging to thesaidmanufacturerandfiredinsuchkilnshallbetakenintoaccount

(E)wherethespecifiedgoodsaremanufacturedinafactorybelongingtoormaintainedby the Central Government or by a State Government, or by a State IndustriesCorporation, or by a State Small Industries Corporation or by the Khadi and Village



IndustriesCommission,thenthevalueofexcisablegoodsclearedfromsuchfactoryaloneshallbetakenintoaccount

(F) "normal rateofduty"means theaggregateofdutyofexcisespecified in theFirstScheduletotheCentralExciseTariffAct,1985andthespecialdutyofexcisespecifiedinthe Second Schedule to the said Central Excise Tariff Act read with any relevantnotification (other than this notificationor a notification inwhich exemption is based onthevalueorquantityofclearance) issuedundersubsection(1)ofsection5Aof thesaidCentralExciseAct,1944

(G) "clearances forhomeconsumption",wherever referred to in thisnotification, shallincludeclearancesforexporttoBhutanandNepal

(H) " ruralarea"means theareacomprised inavillageasdefined in the landrevenuerecords,excluding

(i) theareaunderanymunicipalcommittee,municipalcorporation, townareacommittee,cantonmentboardornotifiedareacommittee,or

(ii) any area that may be notified as an urban area by the CentralGovernmentoraStateGovernment.

(I)forthepurposeofgoodsfallingunderChapter61or62ofthesaidFirstSchedule,theexpression"manufacturer"shall includeapersonwho is liable topaythedutyofexciseleviableonsuchgoodsundersubrule(3)ofrule4oftheCentralExciseRules,2002.

ANNEXURE

AllgoodsspecifiedintheFirstScheduleandtheSecondScheduletotheCentralExciseTariffAct,1985(5of1986),otherthanthefollowing,namely:

(i) allgoodswhicharechargeabletonilrateofdutyorareexemptfromthewholeofthedutyofexciseleviablethereon

(ii) allgoodsfallingunderheadingNo.09.02

(iii) allgoodsfallingunderheadingNo.21.06andsubheadingNos.2101.10and2101.20

(iv) all goods falling under Chapter 24 of the First Schedule (other than unbranded chewingtobacco,preparationscontainingchewingtobaccoandtobaccoextractsandessences,fallingunderheadingNo.24.04)

(v) allgoodsfallingunderheadingNo.25.04andgraniteslabsandtiles,fallingunderheadingNo.68.07

(vi) sandalwoodoil

(vii) allgoodsfallingunderheadingNo.36.05

(viii) allgoodsfallingunderheadingNos.37.01,37.02,andsubheadingNo.3703.10

(ix) stripsof plastics intended forweavingof fabrics or sacks, polyurethane foamandarticles ofpolyurethanefoam,fallingunderChapter39oftheFirstSchedule

(x) all goods falling under Chapter 51 of the First Schedule other than those falling under subheadingNos.5105.30and5105.40andheadingNos. 51.06, 51.07, 51.08, 51.09, 51.10and51.11(exceptwovenfabricsofwoolfallingunderheadingNos.51.10or51.11)and51.12

(xi) allgoodsfallingunderChapter52oftheFirstScheduleotherthangoodsfallingunderheadingNo.52.04



(xii) all goods falling underChapter 53 of the First Schedule except goods falling under headingNos. 53.01, 53.02, 53.04, 53.05,53.08(other than goods falling under subheading No.5308.14),53.11(otherthanwovenfabricsoframie)

(xiii) all goods falling underChapter 54 of the First Schedule except goods falling under headingNos.54.01

(xiv) all goods falling underChapter 55 of the First Schedule except goods falling under headingNos.55.05,55.08andshoddyyarnmanufacturedfromusedornewragsfallingunderheadingNo.55.09or55.10

(xv) all goods falling underChapter 56 of the First Schedule except goods falling under headingNos. 56.01, 56.02, 56.03, 56.04, 56.05, chenille yarn falling under subheading No.5606.00,56.07(otherthanofjute),56.08and56.09

(xvi) allgoodsfallingunderChapter57oftheFirstSchedule

(xvii) all goods falling underChapter 58 of the First Schedule except goods falling under headingNos. 58.03, 58.06, 58.07, 58.08, uncut grey (unprocessed)wovenweft pile fabrics of cottonmanufactured from grey unprocessed cotton yarn falling under subheading No.5801.21,unprocessed woven pile fabrics of cotton falling under subheading No.5801.21 andunprocessed woven pile fabrics of manmade fibres falling under subheading No.5801.31,fabricsofcottonormanmade fibres fallingunder subheadingNo.5802.51,andunprocessedcottonterrytowellingfabricsfallingundersubheadingNo.5802.21

(xviii) all goods fallingunderChapter 59 of the First Schedule except goods falling underHeadingNos. 59.01, 59.05, 59.06, 59.08, 59.09 59.10, 59.11 and textile fabrics coated or laminatedwithpreparationsoflowdensitypolyethylene

(xix) all goods falling under Chapter 60 of the First Schedule except goods falling under subheading No.6002.10 and fabrics of cotton manmade fibres not subjected to any processfallingunderheadingNos.60.01or60.02

(xx) blanketsofwoolfallingunderChapter63oftheFirstSchedule

(xxi) aluminiumcircles,whetherornottrimmed,fallingunderChapter76oftheFirstSchedule

(xxii) (A)Allgoodsfallingunder

(a) heading No. 74.03, excluding the following goods falling under subheading No.7403.21,namely:

(i)castbrassbars/rodsofalengthnotexceedingthreefeet

(ii)castbrassbars/rodsofalengthnotexceedingtenfeetusedinthefactoryofproductionformakingwiresfallingundersubheadingNo.7408.29

(iii)copperflatsofaweightnotexceedingtwokilogramsusedformakingcopperstripsfallingunderheadingNo.74.09

(iv)brassbilletsweighinguptofivekilograms

(b) heading No. 74.09 (excluding copper strips produced from copper flats of a weight notexceedingtwokilograms)

(c)subheadingNos.7407.11,7407.12,7408.11,7408.21and

(B)coppercircles,whetherornottrimmed

(xxiii) ballorrollerbearingsfallingunderChapter84oftheFirstSchedule



(xxiv) allgoodsfallingunderheadingNos87.01,87.02,87.03,87.04,87.05,87.06and87.11[otherthan powered cycles and powered cycle rickshaw ("powered cycle"or powered rickshawmeansamechanicallypropelledcycleor,asthecasemaybe,mechanicallypropelledcyclerickshaw,whichmayalsobepeddled,ifanynecessityarisesforsodoing)]

(xxv) allgoodsfallingunderheadingNos91.01or91.02

(xxvi) allgoodsfallingunder

a) heading Nos. 93.02, 93.03, 93.04 [except air guns, air rifles and air pistols which areexemptfromtheprovisionsoftheArmsAct,1959(54of1959)],

b)headingNos.93.06and93.07(exceptpartsfallingunderheadingNos.93.06or93.07)

(xxvii) allgoodsfallingundersubheadingNo.9605.10.

T.R.RustagiJointSecretarytotheGovernmentofIndia

F.No.334/1/2002TRU

(NotificationNo.8/2002CentralExcise,dated132002,asamendedbyCorrigenduminF.No.334/1/2002TRU(Pt.),dated132002)

Documents

Notification No 8 2002