New Delhi, dated the 1st March .

2000 11 Phalguna, 1921 (SAKA)

NOTIFICATION No. 8 /2000 CENTRAL EXCISE, dated 1-3-2000 (effecter from 1-4-2000), as amended by Notification No. No. 31/2000-CE., dated 31-3-2000, No. 47/2000-CE., dated 19-2000 and No. 6/2001-CE., dated 1-3-2001. In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satis fied that it is necessary in the public interest so to do hereby exempts clearan ces, specified in column (2) of the Table below (hereinafter referred to as the said Table) for home consumption, of excisable goods of the description specifie d in the Annexure appended to this notification (hereinafter referred to as "the specified goods"), from so much of the aggregate of (i) the duty of excise specified thereon in the First Schedule to the Centra l Excise Tariff Act, 1985 (5 of 1986) and (ii) The special duty of excise specified thereon in the Second Schedule to the said Central Excise Tariff Act, as is in excess of the amount calculated at the rate specified in the correspond ing entry in column (3) of the said Table TABLE Sl No Value of Clearances Rate of duty (1) (2) (3) 1 First clearances upto an aggregate value not exceeding one hundred lakh rupees made on or after the 1st day of April in any financial year.

Provided that if any clearances for home consumption have been made before the 1 st day of September, 2000 under this notification during the financial year 2000 -2001, whether at nil rate or otherwise, the aggregate value of such clearances shall be taken into account for computing the limit of one hundred lakh rupees. Provided further that in the financial year 2000-2001, in the period beginning w ith the 1st day of March, 2001 and ending on the 31st day of March, 2001,both da ys inclusive, the aggregate value of clearances of ,woven pile fabrics or chenille yarn that may be cleared at nil rate of duty shall be determined in accordance with the transitional provisions contained in paragraph 4A , candles, footwear of a retail sale price not exceeding Rs. 125 per pair, tab leware and kitchenware of glass, imitation jewellery , vacuum and gas filled bul bs of retail sale price not exceeding Rs. 20 per bulb, monochrome television rec eivers, sunglasses for correcting vision , toothbrushes and rubberised coir matt resses that may be cleared at nil rate of duty , shall be determined in accordan ce with the transitional provisions contained in paragraph 4B."

Nil 2. Omitted. 3. All clearances of the specified goods which are used as inputs for further manuf acture of any specified goods within the factory of production of the specified goods. Nil

ILLUSTRATIONS REGARDING SL NO 1 OF THE TABLE (In these Illustrations, "clearances " means clearances for home consumption)

Illustration 1. As on the 31st day of August, 2000, a manufacturer has made clea rances of an aggregate value of forty lakh rupees at nil rate of duty. He shall be entitled to additional duty free clearances upto an aggregate value of sixty lakh rupees, only in the remaining part of the financial year 2000-2001.

Illustration 2. As on the 31st day of August, 2000, a manufacturer has made clea rances of an aggregate value of sixty lakh rupees, comprising of fifty lakh rupe es at nil rate of duty and ten lakh rupees at the concessional rate of duty at f ive per cent. He shall be entitled only to additional duty free clearances upto an aggregate value of forty lakh rupees only, during the remaining part of the f inancial year 2000-2001.

Illustration 3. As on the 31st day of August, 2000, a manufacturer has made clea rances of an aggregate value of one hundred and ten lakh rupees, comprising of f ifty lakh rupees at nil rate of duty , fifty lakh rupees at the concessional rat e of duty of five per cent and ten lakh rupees at the normal rate of duty. He sh all not be entitled to any additional clearances at nil rate of duty during the remaining part of the financial year 2000-2001. 2. The exemption contained in this notification shall apply subject to the follo wing conditions, namely:A manufacturer has the option not to avail the exemption contained in this n otification and instead pay the normal rate of duty on the goods cleared by him. Such option shall be exercised before effecting his first clearances at the nor mal rate of duty. Such option shall not be withdrawn during the remaining part o f the financial year. While exercising the option under condition (i), the manufacturer shall info rm in writing to the Deputy Commissioner or Assistant Commissioner of Central Ex cise with a copy to the Superintendent of Central Excise giving the following pa rticulars, namely:name and address of the manufacturer; location/ locations of factory / factories; Description of specified goods produced; date from which option under this notification has been exercised; aggregate value of clearances of specified goods (excluding the value of cle arances referred to in paragraph 3 of this notification) till the date of exerci sing the option; The manufacturer shall not avail the credit of duty under rule 57AB or rule 57AK of the Central Excise Rules, 1944, paid on inputs used in the manufacture o f the specified goods cleared for home consumption, the aggregate value of first clearances of which, as calculated in the manner specified in the said Table do es not exceed rupees one hundred lakhs. The manufacturer also does not utilise the credit of duty under rule 57AB of the said rules, paid on capital goods, for payment of duty, if any, on the afor esaid clearances, the aggregate value of first clearances of which does not exce ed rupees one hundred lakhs, as calculated in the manner specified in the said T able. Where a manufacturer clears the specified goods from one or more Factories, the exemption in his case shall apply to the aggregate value of clearances menti oned against each of the serial numbers in the said Table and not separately for each factory. Where the specified goods are cleared by one or more manufacturers from a fa ctory, the exemption shall apply to the aggregate value of clearances mentioned against each of the serial numbers in the said Table and not separately for each manufacturer. The aggregate value of clearances of all excisable goods for home consumptio n by a manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed rupees three hundred lakhs in the preceding fina ncial year; 3. For the purpose of determining the aggregate value of clearances for home con sumption, the following clearances shall not be taken into account, namely:clearances, which are exempt from the whole of the excise duty leviable thereon (other than an exemption based on quantity or value of clearances) under any other notification or on which no excise duty is payable for any other reas

on; clearances bearing the brand name or trade name of another person, which are ineligible for the grant of this exemption in terms of paragraph 4; clearances of the specified goods which are used as inputs for further m anufacture of any specified goods within the factory of production of the specif ied goods; Clearances of strips of plastics used within the factory of production f or weaving of fabrics or for manufacture of sacks or bags made of polymers of et hylene or propylene. clearances of hot re-rolled products of non alloy steel falling under su b-heading Nos. 7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92, 72 11.99, 7213.90, 7214.90, 7215.90, 7216.10 and 7216.90, lying in stock on 31st Ma rch, 2000, on which duty of excise has been paid under section 3A of the Central Excise Act, 1944; clearances of ingots and billets of non-alloy steel falling under sub-he ading Nos. 7206.90 and 7207.90, lying in stock on 31st March, 2000, on which dut y of excise has been paid under section 3A of the Central Excise Act, 1944 The exemption contained in this notification shall not apply to specified go ods bearing a brand name or trade name, whether registered or not, of another pe rson, except in the following cases:where the specified goods, being in the nature of components or parts of any manchinery or equipment or appliances, are cleared for use as original equi pment in the manufacture of the said machinery or equipment or appliances by fol lowing the procedure laid down in Chapter X of the Central Excise Rules, 1944. M anufacturers, whose aggregate value of clearances of the specified goods for use as original equipment does not exceed rupees fifty lakhs in the financial year 1999-2000 as calculated in the manner specified in paragraph 1 may submit a decl aration regarding such use instead of following the procedure laid down in Chapt er X of the said rules; where the specified goods bear a brand name or trade name of the khadi and Village Industries Commission; or a state Khadi and Village Industry Board; or the National Small Industries Development Corporation; or a State Small Industries Development Corporation; or a State Small Industries Corporation; where the specified goods are manufactured in a factory located in a rur al area. 4A. The following transitional provisions shall apply for the period from 1st Ma rch, 2001 to 31st March 2001, both days inclusive, in respect of the manufacture rs of woven pile fabrics and chenille yarn i.e the goods specified in clause (a) of the second proviso, against Sl No 1, in column(2) :(1) notwithstanding anything contained in paragraph 1, the aggregate value of cl earances of woven pile fabrics or chenille yarn, or both that shall be allowed t o be cleared at nil rate of duty shall be determined in accordance with clauses 2) to 5) ; (2) a manufacturer whose aggregate value of clearances for home consumption, as on 28th February , 2001 does not exceed rupees ninety lakhs is only entitled to make clearances for home consumption of an aggregate value not exceeding ten lak hs, at nil rate of duty ; (3) a manufacturer whose aggregate value of clearances for home consumption as o n 28th February , 2001, exceeds rupees ninety lakhs , is only entitled to make c learances for home consumption, at nil rate of duty , of an aggregate value equa

l to the difference between hundred lakhs and the aggregate value of clearances for home consumption as on the 28th of February, 2001; (4)a manufacturer whose aggregate value of clearances for home consumption as on 28th February , 2001 exceeds rupees one hundred lakhs , is not entitled to make any clearances for home consumption at nil rate of duty ; (5) for the purposes of these transitional provisions, the aggregate value of cl earances shall mean the aggregate value of clearances of woven pile fabrics or c henille yarn, as the case may be, determined in accordance with the provisions o f paragraph 3 above Illustration 1.- As on 28th February, 2001, a manufacturer of woven pile fabrics or chenille yarn has made clearances for home consumption of an aggregate value of rupees eighty five lakhs. He is entitled to clearances of an aggregate value of rupees ten lakhs at nil rate of duty. Illustration 2.- As on 28th February, 2001, a manufacturer of woven pile fabrics or chenille yarn has made clearances for home consumption of an aggregate value of rupees ninety five lakhs. He is entitled to clearances of an aggregate value of rupees five lakhs at nil rate of duty. 4B. The following transitional provisions shall apply for the period 1st March, 2001 to 31st March 2001,both days inclusive, in respect of the manufacturers of goods specified in clause(b) of the second proviso, against Sl No 1, in column(2 ) :(1) notwithstanding anything contained in paragraph 1, the aggregate value of cl earances of any one or more of the goods specified in clause(b) of the second pr oviso, against Sl No 1, in column(2) , ,that shall be allowed to be cleared at n il rate of duty shall be determined in accordance with clauses (2) and (3) below (2) a manufacturer is only entitled to make clearances for home consumption, of an aggregate value not exceeding rupees ten lakhs, at nil rate of duty. (3) for the purposes of these transitional provisions, the aggregate value of cl earances shall mean the aggregate value of clearances of any one or more of the goods specified in clause(b) of the second proviso, against Sl No 1, in column(2 ) , determined in accordance with the provisions of paragraph 3 above. This notification shall come into force of the 1st day of April, 2000.

Explanation.- For the purposes of this notification."brand name" or "trade name" means a brand name or a trade name, whether reg istered or not, that is to say, a name or a mark, such as symbol, monogram, labe l, signature or invented word or writing which is used in relation to such speci fied goods for the purpose of indicating, or so as to indicate a connection in t he course of trade between such specified goods and some person using such name or mark with or with out any indication of the identity of that person; where the specified goods manufactured by a manufacturer bear a brand name o r trade name, whether registered or not, of another manufacturer or trader, such specified goods shall not, merely by reason of that fact, be deemed to have bee n manufactured by such other manufacturer or trader; "value" means in respect of specified goods which have been notified under section 4A of the Central Excise Act 1944(1 of 1044), the value as determined in accordance with the provisions of that section, and

in respect of specified goods other than those referred to in sub clause (i), the value as determined in accordance with the provisions of section 4 of the Central Excise Act, 1944 (1 of 1944), or the tariff value fixed under sectio n 3 of the said Act; in the determination of the value of clearances of Chinaware or Porcelainwar e or both, where a manufacturer gets Chinaware or Porcelainware or both fired in a kiln belonging to or maintained by a Pottery Development Center run by the Ce ntral Government or a State Government or by the Khadi and Village Industries Co mmission, the value of the Chinaware or Porcelainware or both, belonging to said manufacturer and fired in such kiln shall be taken into account; where the specified goods are manufactured in a factory belonging to or main tained by the Central Government or by a State Government, or by a State industr ies Corporation, or by a State Small Industries Corporation or by the Khadi and Village Industries Commission, then the value of excisable goods cleared from su ch factory alone shall be taken into account; "normal rate of duty" means the aggregate of duty of excise specified in the First Schedule to the said Central Excise Tariff Act, 1985 (5 of 1986) and the special duty of excise specified in the Second Schedule to the said Central Exci se Tariff Act read with any relevant notification (other than this notification or a notification in which exemption is based on the value or quantity of cleara nce) issued under sub-section (1) of section 5A of the said Central Excise Act, 1944; "clearances for home consumption", wherever referred to in this notification shall include clearances for export to Bhutan and Nepal. " rural area" means the are comprised in a village as defined in the land re venue records excludingthe committee, any or a State area under any municipal committee, municipal corporation, town area cantonment board or notified area committee, or area that may be notified as an urban area by the Central Government Government.

refund of duty paid at the concessional rate of five per cent on any clearan ces made before the 1st day of September 2000 on the ground that such clearances are included in the aggregate value of clearances under Sl.No.1 of the TABLE, s hall not be admissible. I. "retail sale price" means the maximum price at which the excisable goods in p ackaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight , transport charges, commission payable to dealers and all charges towards advertisement, delivery, packing , forwarding and the like, as the case may be, and the price is the sole consideration for such sale. ANNEXURE All goods specified in the Schedule to the Central Excise Tariff Act, 1985 ( 5 of 1986), other than the following, namely:all goods which are chargeable to nil rate of duty or are exempt from th e whole of the duty of excise leviable thereon; all goods falling under heading No. 09.02; all goods falling under heading No. 21.06 and sub-heading Nos. 2101.10 a nd 2101.20; all goods falling under Chapter 24 of the said Schedule (other than unbr anded chewing tobacco and preparations containing chewing tobacco, falling under heading No. 24.04 of the said Schedule); all goods falling under heading No. 25.04; sandalwood oil; all goods falling under heading No. 36.05;

all goods falling under heading Nos. 37.01, 37.02, and sub-heading No. 3 703.10; strips of plastics intended for weaving of fabrics or sacks, polyurethan e foam and articles of polyulrethane foam; falling under Chapter 39; all goods falling under Chapter 51 of the said Schedule other than those falling under sub-heading Nos. 5105.30 and 5105.40 and heading Nos. 51.06, 51.0 7, 51.08, 51.09, 51.10, and 51.11 (except woven fabrics of wool falling under he ading Nos. 51.10 or 51.11) and under 51.12; all goods falling under Chapter 52 of the Schedule other than goods fall ing under heading No. 52.04; all goods falling under Chapter 53 of the Schedule except goods falling under heading Nos. 53.01, 53.02, 53.04, 53.05, 53.08 (other than goods falling u nder sub-heading No. 5308.14), 53.11 (other than woven fabrics of ramie); all goods falling under Chapter 54 of the Schedule except goods falling under heading Nos. 54.01, all goods falling under Chapter 55 of the Schedule except goods falling under heading Nos. 55.05, 55.08 and shoddy yarn manufactured from used or new ra gs falling under heading No. 55.09, 55.10; all goods falling under Chapter 56 of the Schedule except goods falling under heading Nos. 56.01, 56.02, 56.03, 56.04, 56.05, (other than of man-made fi laments), chenille yarn falling under sub-heading No. 5606.00, 56.07 (other than of jute), 56.08, and 56.09; all goods falling under Chapter 57 of the said Schedule; all goods falling under Chapter 58 of the said Schedule except goods fal ling under heading Nos. 58.03, 58.06, 58.07, 58.08, uncut grey (unprocessed) wov en weft pile fabrics of cotton manufactured from grey unprocessed cotton yarn fa lling under sub-heading No. 5801.21, unprocessed woven pile fabrics of cotton f alling under sub-heading No. 5801.21 and unprocessed woven pile fabrics of man-m ade fibres falling under sub-heading No. 5801.31, fabrics of cotton or man-made fibres falling under sub-heading No. 5802.51, and unprocessed cotton terry towel ling fabrics falling under sub-heading No. 5802.21; all goods falling under Chapter 59 of the Schedule except goods falling under Heading Nos. 59.01, 59.05, 59.06, 59.08, 59.09, 59.10, 59.11 and textile f abrics coated or laminated with preparations of low-density polyethylene; all goods falling under Chapter 60 of the Schedule except goods falling under Heading Nos. 6002.10 and fabrics of cotton man-made fibres not subjected t o any process falling under heading Nos. 60.01 or 60.02; xixa. all goods falling under chapter 62; xx. blankets of wool falling under Chapter 63 of the said Schedule ; xxi. aluminium circles, whether or not trimmed, falling under Chapt er 76; xxii. (A) All goods falling underheading No. 74.03, excluding the following goods falling under s ub-heading No. 7403.21, namelycast brass bars/rods of a length not exceeding 3 feet, cast brass bars/rods of a length not exceeding 10 feet used in t he factory of production for making wires falling under sub-heading No. 7408.29, copper flats of a weight not exceeding 2 kilograms used for maki ng copper strips falling under heading No. 74.09, brass billets weighing upto five kilograms. heading No. 74.09 (excluding copper strips produced from copper flats of a weight not exceeding 2 kilograms), sub-heading Nos. 7407.11, 7407.12, 7408.11, 7408.21; and

(B) copper circles, whether or not trimmed." (C) ball or roller-bearings falling under chapter 84 (xxiii) all goods falling under heading Nos. 87.01, 87.02, 87.03, 87.04, 87. 05, 87.06 and 87.11 [other than powered cycles and powered cycle rickshaw ("powe red cycle" or powered rickshaw means a mechanically propelled cycle or, as the c ase may be, mechanically propelled cycle rickshaw, which may also be peddled, if any necessity arises for so doing]; (xxiv) all goods falling under heading Nos. 91.01 or 91.02; (xxiv-a) all goods falling under chapter 93; (xxv) all goods falling under sub-heading Nos 9605.10.

(T.R.RUSTAGI) JOINT SECRETARY TO THE GOVERNMENT OF INDIA F.No 334/1/2000