Central Excise Valuation, Determination of Price of Excisable Goods Rules, 2000, Chapter-I Preliminary.
CHAPTER I PRELIMINARY
CHAPTER II DETERMINATION OF VALUE
CONSUMER WELFARE FUND RULES, 1992
FORM-AI
DECLARATION
APPLICANT
INDUCTION FURNACE ANNUAL CAPACITY DETERMINATION RULES, 1997
HOT RE-ROLLING STEEL MILLS ANNUAL CAPACITY DETERMINATION RULES, 1997
HOT-AIR STENTER INDEPENDENT TEXTILE PROCESSORS ANNUAL CAPACITY DETERMINATION
RULES, 2000
CENTRAL EXCISE VALUATION (DETERMINATION OF PRICE OF EXCISABLE
GOODS) RULES, 2000
(Notification No. 45/2000-C.E. (N.T.), dated 30-6-2000 [Effective
from 1-7-2000], as amended by Notification No. 23/2002-C.E. (N.T.), dated
13-6-2002 and No. 11/2003-C.E. (N.T.), dated 1-3-2003.)
-
- These rules may be called the Central Excise Valuation
(Determination of Price of Excisable Goods) Rules, 2000.
- They shall come into force on and from the 1st day of July, 2000.
CHAPTER I
PRELIMINARY
- In these rules, unless the context otherwise requires,-
- "Act" means the Central Excise Act, 1944 (1 of 1944);
- "normal transaction" means the transaction value at which the
greatest aggregate quantity of goods are sold;
- "value" means the value referred to in Section 4 of the Act;
- words and expressions used in these rules and not defined but
defined in the Act shall have the meanings respectively assigned to them
in the Act.
CHAPTER II
DETERMINATION OF VALUE
- The value of any excisable goods shall, for the purposes of clause
(b) of sub-section (1) of Section 4 of the Act, be determined in accordance
with these rules.
- The value of the excisable goods shall be based on the value of such
goods sold by the assessee for delivery at any other time nearest to the
time of the removal of goods under assessment, subject, if necessary, to
such adjustment on account of the difference in the dates of delivery of
such goods and of the excisable goods under assessment, as may appear
reasonable to the proper officer.
- Where any excisable goods are sold in the circumstances specified in
clause (a) of sub-section (1) of section 4 of the Act except the
circumstances in which the excisable goods are sold for delivery at a place
other than the place of removal, then the value of such excisable goods
shall be deemed to be the transaction value, excluding the cost of
transportation from the place of removal upto the place of delivery of such
excisable goods.
Explanation 1.– “Cost of transportation” includes –
- the actual cost of transportation; and
- in case where freight is averaged, the cost of transportation
calculated in accordance with generally accepted principles of costing.
Explanation 2. - For removal of doubts, it is clarified that the cost of
transportation from the factory to the place of removal, where the
factory is not the place of removal, shall not be excluded for the
purposes of determining the value of the excisable goods.
- Where the excisable goods are sold in the circumstances specified in
clause (a) of sub section (1) of section 4 of the Act except the
circumstance where the price is not the sole consideration for sale, the
value of such goods shall be deemed to he the aggregate of such transactin value and the amount of money value of any additional
consideration flowing directly or indirectly from the buyer to the
assessee.
Explanation 1 - For removal of doubts, it is hereby clarified that the
value, apportioned as appropriate, of the following goods and services,
whether supplied directly or indirectly by the buyer free of change or
at reduced cost for use in connection with the production and sale of
such goods, to the extent that such value has not been included in the
price actually paid or payable, shall be treated to be the amount of
money value of additional consideration flowing directly or indirectly
from the buyer to the assessee in relation to sale of the goods being
valued and aggregated accordingly, namely:-
- value of materials, components, parts and similar items relatable to
such goods;
- value of tools, dies, moulds, drawings, blue prints, technical maps
and charts and similar items used in the production of such goods;
- value of material consumed, including packaging materials, in the
production of such goods.
- value or engineering, development, art work, design work and plans
and sketches undertaken elsewhere than in the factory of production and
necessary for the production of such goods.
Explanation. 2– Where an assessee receives any advance payment from the
buyer against delivery of any excisable goods, no notional interest on
such advance shall be added to the value unless the Central Excise
Officer has evidence to the effect that the advance received has
influenced the fixation of the price of the goods by way of charging a
lesser price from or by offering a special discount to the buyer who has
made the advance deposit.
Illustration 1.- X, an assessee, sells his goods to Y against full
advance payment at Rs. 100 per piece. However, X also sells such goods
to Z without any advance payment at the same price of Rs. 100 per piece.
No notional interest on the advance received by X is includible in the
transaction value.
Illustration 2.- A, an assessee, manufactures and supplies certain goods
as per design and specification furnished by B at a price of Rs. 10
lakhs. A takes 50% of the price as advance against these goods and there
is no sale of such goods to any other buyer. There is no evidence
available with the Central Excise Officer that the notional interest on
such advance has resulted in lowering of the prices. Thus, no notional
interest on the advance received shall be added to the transaction
value.
- Where the excisable goods are not sold by the assessee at the time
and place of removal but are transferred to a depost, premises of a
consignment agent or any other place or premises (hereinafter to as
"such other place") from where the excisable goods are to be sold after
their clearance from the place of removal and where the assessee and the
buyer of the said goods are not related and the price is the sole
consideration for the sale, the value shall be the normal transaction
value of such goods sold from such other place at or about the same time
and, where such goods are not sold at or about the same time, at the
time nearest to the time of removal of goods under assessment.
- Where the excisable goods are not sold by the assessee but are used
for consumption by him or on his behalf in the production or manufacture
of other articles, the value shall be one hundred and fifteen per cent
of the cost of production or manufacture of such goods.
- When the assessee so arranges that the excisable goods are not sold
by an assessee except to or through a person who is related in the
manner specified in either of sub-clauses (ii), (iii) or (iv) of clause
(b) of sub-section (3) of section 4 of the Act, the value of the goods
shall be removal, to buyers (not being related person); or where such
goods are not sold to such buyers, to buyers (being related person), who
sells such goods in retail;
Provided that in a case where the related person does not sell the goods
but uses or consumes such goods in the production or manufacture or
articles, the value shall be detemined in the manner specified in rule
8.
- When the assessee so arranges that the excisable goods are not sold
by him except to or through an inter-connected undertaking, the value of
goods shall be detemined in the following manner, namely:-
- If the undertakings are so connected that they are also related in
terms of sub-clause (ii) or (iii) or (iv) of clause
- of sub-section (3) of Section 4 of the Act or the buyer is a holding
company or subsidiary company of the assessee, then the value shall be
detemined in the manner prescribed in rule 9.
Explanation- In this clause "holding company" and "subsidiary company"
shall have the sam meanings as in the Companies act, 1956 (1 of 1956).
(b) in any other case, the value shall be detemined as if they are not
related persons for the purpose of sub-section (1) of section 4.
- If the value of any excisable goods cannot be detemined under the
foregoing rules, the value shall be detemined using reasonable means
consistent with the principles and general provisions of these rules and
sub-section (1) of section 4 of the Act.
CONSUMER WELFARE FUND RULES, 1992
M.F. (D.R.) Notification No. 29/92-C.E. (N.T.), dated 25-11-1992
as amended
In exercise of the powers conferred by sub-section (2) of section 37, read
with
section 12D of the Central Excises and Salt Act, 1944 (1 of 1944), the Central
Government,
hereby makes the following rules, namely :
- Short title and commencement:
- These rules may be called the Consumer Welfare Fund Rules, 1992.
- They shall come into force on the date of their publication in the
Official Gazette.
- Definitions. -In these rules, unless the context
otherwise requires, -
- "Act" means the Central Excise Act, 1944 (1 of 1944), or, as the
case may be, the Customs Act, 1962 (52 of 1962);
- "Applicant" means any agency / organisation engaged in consumer
welfare activities for a period of three years registered under the
Companies Act, 1956 (1 of 1956) or under any other law for the time
being in force, including village/mandal/samiti level co-operatives of
consumers especially Women, Scheduled Castes and Scheduled Tribes, or
any industry as defined in the Industrial Disputes Act, 1947 (14 of
1947) recommended by the Bureau to be engaged for a period of five years
in viable and useful research activity which has made, or is likely to
make, significant contribution in formulation of standard mark of the
products of mass consumption, the Central Government or the State
Government, and includes a consumer for the purpose of reimbursing legal
expenses as referred to in clause (d) of rule-8 of these rules;
- "Application" means an application in Form AI, appended to these
rules;
- "Bureau" means the Bureau of Indian Standards constituted under the
Bureau of Indian Standards Act, 1986 (63 of 1986);
- "Central Consumer Protection Council" means the Central Consumer
Protection Council established under sub-section (1) of section 4 of the
Consumer Protection Act, 1986 (68 of 1986), for promotion and protection
of rights of consumers;
- "Committee" means the Committee constituted under rule 5;
- "Consumer" has the same meaning as assigned to it in clause (d) of
sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of
1986), and includes consumer of goods on which duty has been paid;
- "Consumer Welfare Fund" means the fund established by the Central
Government under sub-section (1) of section 12C of the Central Excise
Act, 1944 (1 of 1944);
- "Duty" means the duty paid under the Act;
(ia) "Proper Officer" means the officer having the power under the Act
to make an order that the whole or any part of the duty is refundable;
- "Standard mark" shall have the same meaning as assigned to it in
clause (t) of section 2 of the Bureau of Indian Standards Act, 1986 (63
of 1986);
- "Welfare of the Consumers" includes promotion and protection
of rights of consumers;
- Words and expressions used in the rules and not defined but defined
in the Consumer Protection Act, 1986 (68 of 1986) shall have the
meanings respectively assigned to them in that Act.
- Establishment of Consumer Welfare Fund :-
There shall be established a Consumer Welfare Fund with the Central
Government into which credits of amounts of duty and income from investment
along with other monies specified in sub-section (2) of section 12C of the
Central Excise Act, 1944 (1 of 1944) shall be accredited.
Provided that any amount having been credited to the Fund is ordered or
directed as payable to any claimant by orders of proper officer, appellate
authority or court, shall be paid from the Fund.
-
Maintenance of accounts and records of Consumer Welfare Fund :-
Proper and separate accounts in relation to the Consumer Welfare
Fund shall be maintained by the Central Government and shall be subject to
audit by the Comptroller and Auditor General of India.
- Constitution of the Committee :-
- The Committee constituted by the Central Government under sub-rule
(2), shall make recommendations for proper utilisation of the money
credited to the Consumer Welfare Fund for the welfare of the consumers,
to carry out the purposes of these rules.
- The Committee shall consist of the following Members, namely :-
- The Secretary, Department of Consumer Affairs, who shall be the
Chairman of the Committee;
- Secretary, Department of Expenditure in the Ministry of Finance
or the Financial Adviser, Department of Consumer Affairs in the
Ministry of Food, Civil Supplies and Public Distribution, who shall
be the Vice-Chairman of the Committee;
- Chairman, Central Board of Excise and Customs or an officer not
below the rank of a Joint Secretary in the Department of Revenue of
Ministry of Finance;
- Member (Central Excise) of the Central Board of Excise and
Customs or an officer not below the rank of a Joint Secretary in the
Department of Revenue of Ministry of Finance;
- Secretary/Joint Secretary/Economic Adviser (Monitoring)
Department of Rural Development
- Director General, Bureau of Indian Standards;
- The Additional Secretary or Joint Secretary incharge of Consumer
Welfare Fund, in the Department of Consumer Affairs, who shall also
be the Member-Secretary of the Committee:
Provided that the Chairman or Vice-Chairman, as the case may be, may
invite representatives of the State Governments concerned and a
nominee of the Consumer Co-ordination Council to the meetings as and
when necessary.
- The Committee shall be a standing Committee.
- Procedure for conduct of business :-
- The Committee shall meet as and when necessary, but not more than
three months shall intervene between any two meetings.
- The Committee shall meet at such time and place as the Chairman, or
in his absence the Vice-Chairman of the Committee may deem fit.
- The meeting of the Committee shall be presided over by the Chairman,
and in the absence of the Chairman, the Vice-Chairman shall preside over
the meetings of the Committee.
- Each meeting of the Committee shall be called, by giving notice in
writing to every member of not less than ten days from the date of issue
of such notice.
- Every notice of the meeting of the Committee shall specify the place
and the day and hour of the meeting and shall contain statement of
business to be transacted thereat.
- No proceeding of the Committee shall be valid, unless it is presided
over by the Chairman or Vice-Chairman and a minimum of three other
members are present.
- Powers and functions of the Committee :-
- The Committee shall have powers :-
- to require any applicant to produce before it, or before a duly
authorised Officer of the Central Government, or as the case may be,
the State Government, such books, accounts, documents, instruments,
or commodities in custody and control of the applicant, as may be
necessary for proper evaluation of the application;
- to require any applicant to allow entry and inspection of any
premises, from which activities claimed to be for the welfare of
Consumers, are stated to be carried on, to a duly authorised officer
of the Central Government or, as the case may be. State Government;
- to get the accounts of the applicants audited, for ensuring
proper utilisation of the grant;
- to require any applicant, in case of any default, or suppression
of material information on his part, to refund in lump-sum, the
sanctioned grant to the Committee, and to be subject to prosecution
under the Act;
- to recover any sum due from any applicant in accordance with the
provisions of the Act;
- to require any applicant, or class of applicants to submit a
periodical report, indicating proper utilisation of the grant;
- to reject an application placed before it on the basis of
involvement of factual inconsistency, or inaccuracy in the material
particulars;
- to recommend minimum financial assistance, by way of grant to an
applicant, having regard to his financial status, and importance and
utility of nature of activity under pursuit, after ensuring that the
financial assistance provided shall not be misutilised;
- to require Central Consumer Protection Council or the Bureau, to
formulate broad guidelines for considering the projects/ proposals
for the purpose of incurring expenditure from the Consumer Welfare
Fund;
- to identify beneficial and safe sectors, where investments out
of Consumer Welfare Fund may be made and make recommendations,
accordingly.
- to relax the conditions required for the period of engagement in
consumer welfare activities of an applicant as specified in clause
(b) of rule 2;
- to make guidelines for the management and administration
of the Consumer Welfare Fund.
- The Committee shall not consider an application, unless it has been
inquired into, in material details and recommended for consideration
accordingly, by the Member Secretary.
-
Specification of purposes for utilisation of credits available
in Consumer Welfare Fund :-
The Committee shall make recommendations :-
- for making available grants to any applicant;
- for making available grants recommended by the Bureau for activities
relating to standard marks, which may be considered essential by the
Central Government, for the welfare of the consumers;
- for investment of the money available in the Consumer Welfare Fund;
- for making available grants, on a selective basis for reimbursing
legal expenses incurred by a complainant, or class of complainants in a
consumer dispute, after its final adjudication;
- for making available grants for any other purpose recommended by the
Central Consumer Protection Council, as may be considered appropriate by
the Committee.
FORM-AI
[See Rule 2 (c) of Consumer Welfare Fund Rules, 1992]
IMPORTANT: Please fill up this form, furnishing correct details sought for,
based on verifiable true state of affairs without causing suppression of any
material information which, if resorted to, shall entail prosecution under the
Act.
Note : All applications must be submitted along with their
enclosures in duplicate duly attested by any gazetted officer of the Central or
State Government.
- Name and full postal address of the applicant :
- Status of the applicant under clause (b) of Rule 2 :
- Date of establishment :
- Whether registered under the Societies Registration : Act, 1860 (21 of
1860) or any other relevant Act
- If yes, number and year of registration (Attested copy : of registration
certificate to be enclosed)
- Whether the organisation is of national or State level :
- Number of Managing Committee members together : with list of names,
addresses and occupation of the office bearers
- Brief details of the organisation, objectives and : activities
during the last three years
- Purpose for which the amount is required (please state : the details of
the project and its proposed (implementation)
- Amount of grant required - itemwise details under : non-recurring,
recurring to be enclosed
- Time Schedule of the activities arranged :
- The total amount incurred or invested by the applicant, : or likely to
be incurred by the applicant
- Sources of funding of balance amount whether the : organisation is
getting financial assistance from any other official or non-official source,
if yes, give details
- Details of prosecution, if any, in a court of law : launched against the
applicant, during the last five years
- Copies of the following documents (duly attested by a gazetted officer
of the Central or State Government) to be attached -
- Constitution of the organisation and Articles of Association.
- Annual reports of the organisation for last three years
(please furnish separate Annual Reports for each year).
- Annual Audited Statement of accounts for each of last 3 years duly
signed by
Chartered Accountant. These Statements must bear the registration number
and
official seal or stamp of the Chartered Accountant.
DECLARATION
(To be signed by the applicant or its authorised agent)
The particulars heretofore given, are true and correct. Nothing material has
been suppressed. It is certified that I/we have read the guidelines, terms and
conditions governing the scheme and undertake to abide by them on behalf of our
organisation/institution. The financial assistance, if provided, shall be put to
the declared use, for promotion and protection of rights of consumers or for
standard marks. (Strike out whichever is inapplicable).
APPLICANT
Dated
Station
To
Member-Secretary
Committee (Consumer Welfare Fund)
Krishi Bhawan
New Delhi
Recommendation of Member-Secretary
Factual details furnished in the application have been
verified in consultation with Ministry/Department of agency who is/are
administratively concerned in the matter and found to be correct/incorrect. The
claims of the applicant are recommended for consideration by the Committee
(Please give reasons in support of your recommendation).
Member-Secretary
Committee (Consumer Welfare Fund)
Recommendation of the Committee
Recommended for grant of Rs. ________ Rupees _____________________________ (in
words) from the Consumer Welfare Fund as discussed in the meeting held on
_______ (date).
Chairman
Committee
INDUCTION FURNACE ANNUAL CAPACITY DETERMINATION RULES, 1997
Notification No. 24/97-C.E. (N.T.), dated 25-7-1997
(This notification has been rescinded vide Notification No.
24/2000-CE (NT), dated 31.3.2000)
In exercise of the powers conferred by sub-section (2) of section 3A of the
Central Excise Act,1944 (1 of 1944), the Central Government hereby makes the
following rules, namely :-
- Short title and commencement. -
- These rules may be called the Induction Furnace Annual Capacity
Determination Rules, 1997.
- They shall come into force on the 1st day of August, 1997.
- These rules shall apply to ingots and billets of non-alloy steel falling
under sub-heading Nos. 7206.90 and 7207.90 of the Schedule of the Central
Excise Tariff Act, 1985 (5 of 1986), for determining the annual capacity of
production of a factory if such goods are manufactured in an induction
furnace unit.
Explanation. - For removal of doubts it is hereby clarified that these rules
also apply to an induction furnace unit which ordinarily produces non-alloy
steel ingots and billets but may also incidentally produce castings or
stainless steel products.
- The annual capacity of production referred to in rule 2 shall be
determined in the following manner, namely:
- the Commissioner of Central Excise (hereinafter referred to as the
Commissioner) shall call for an authenticated copy of the manufacturer's
invoice or trader's invoice, who have supplied or installed the furnace
or crucible to the induction furnace unit, and ascertain the total
capacity of the furnaces installed in the factory on the basis of such
invoice or document;
- if the invoice or document referred to in sub-rule (1) is not
available for any reason with the manufacturer then the Commissioner
shall ascertain the capacity of the furnaces installed in the induction
furnace unit on the basis of the capacity of comparable furnaces
installed in any other factory in respect of which the manufacturer's
invoice or other document indicating the capacity of the furnace is
available or, if not so possible, on the basis of any other material as
may be relevant for this purpose. The Commissioner may, if he so
desires, consult any technical authority for this purpose;
- the annual capacity of production of ingots and billets of non-alloy
steel in respect of such factory shall be deemed to be as determined by
applying the following formula :-
ACP = TCF X 3200, where -
ACP = Annual Capacity of Production of the factory producing ingots and
billets of non-alloy
steel in metric tonnes;
and
TCP = Total capacity of the furnaces installed in the factory producing
ingots and billets of
non-alloy steel in metric tonnes.
- the Commissioner of Central Excise shall, as soon as may be, after
determining, the total capacity of furnaces installed in the factory as
also the annual capacity of production by an order intimate to the
manufacturer.
- The capacity of production for any part of the year, or for any change
in the total furnace capacity, shall be calculated pro rata on the basis of
the annual capacity of production determined in the above manner. In case a
manufacturer proposes to increase or reduce the capacity of induction
furnace, such manufacturer shall intimate about the proposed change to the
Commissioner of Central Excise in writing, with a copy to [Assistant
Commissioner of Central Excise or Deputy Commissioner of Central Excise], at
least one month in advance of such proposed change, and shall obtain the
written approval of the Commissioner before making such change. Thereafter
the Commissioner of Central Excise shall determine the date from which the
change in the installed capacity shall be deemed to be effective.
HOT RE-ROLLING STEEL MILLS ANNUAL CAPACITY DETERMINATION RULES,
1997
M.F. (D.R.) Notification No. 32/97-C.E. (N.T.), dated 1-8-1997
( This notification has been rescinded vide Notification No.
24/2000-CE (NT), dated 31.3.2000)
In exercise of the powers conferred by sub-section (2) of section 3A of the
Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the
following rules, namely :-
-
- These rules may be called the Hot Re-rolling Steel Mills
Annual Capacity Determination Rules, 1997.
- They shall come into force on the 1st day of August, 1997.
- These rules shall apply to non-alloy steel hot re-rolled products
falling undersub-heading Nos.7211.11,7211.19,7211.30,7211.52,
7211.59,7211.60,7211.92, 7211.99,7213.90,7214.90,7215.90,7216.10 and 7216.90
of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), for
determining the annual capacity of production of a factory if such goods are
manufactured or produced with the aid of hot re-rolling mill.
- The annual capacity of production referred to in rule 2 shall be
determined in the following manner, namely :-
- a hot re-rolling mill shall declare the values of 'd', 'n', 'i' and
'speed of rolling', the parameters referred to in sub-rule (3), to the
Commissioner of Central Excise (hereinafter referred to as the
Commissioner), with a copy to the Assistant Commissioner of Central
Excise or Deputy Commissioner of Central Excise;
- on receipt of the information referred to in sub-rule (1), the
Commissioner shall take necessary action to verify their correctness and
ascertain the correct value of each of the parameters. The Commissioner
may, if he so desires, consult any technical authority for this purpose;
- the annual capacity of production of hot re-rolled products of
non-alloy steel in respect of such factory shall be deemed to be as
determined by applying the following formula :-
Annual Capacity = 1.885 xl0-4 xdxnxixexwx Number of utilised hours (in
metric tonnes)
Where:
d = Nominal centre distance of the pinions in the pinion stand in
millimetres
n = Nominal revolutions per minute (RPM) of the drive
i = Reduction ratio of the gear box or of the pulley system or
combination thereof
w = Weight in Kilogramme per metre of the re-rolled product
the value of 'e' in the formula shall be deemed to be 0.30 in case of
low speed mills,
and 0.75 in case of high speed mills
the value of 'w' factor in the formula for the high speed mills shall be
deemed to be
0.45 and for the low speed mills shall be deemed to be as under, -
| Nominal centre distance of the pinions in the pinion stand
in millimetres |
w in kilogramme per metre
|
| Up to 110 |
0.100 |
| 111 to 160 |
0.150 |
| 161 to 210 |
0.395 |
| 211 to 260 |
0.888 |
| 261 to 310 |
1.200 |
| 311 to 360 |
2.466 |
| 361 to 410 |
4.850 |
Number of utilised hours shall be deemed to be as under, -
| S.No. |
Reheating Furnace |
Utilised hours per year |
| Type |
No. of furnace |
| 1. |
Batch |
1 |
1200 |
| 2. |
Batch |
2 |
1800 |
| 3. |
Batch |
more than 2 |
2400 |
| 4. |
Pusher type |
1 or more |
2400 |
Explanation. - For the purposes of this rule :-
- a high speed mill means a mill which produces hot re-rolled products
at a speed of 8.5 metres per second or more and a low speed mill means a
mill which produces hot re-rolled products a speed less than 8.5 metres
per second.
- nominal centre distance is the pinion centre distance of the pinion
stand connecting the last rolling mill drive of the finishing mill
excluding any pinch roll. Such a pinch roll is not a finishing stand.
- the Commissioner of Central Excise shall, as soon as may be, after
determining the total capacity of the hot re-rolling mill installed in
the factory as also the annual capacity of production, by an order,
intimate to the manufacturer.
Provided that the Commissioner may determine the annual capacity of the
hot re-rolling unit on provisional basis pending verification of the
declaration furnished by the hot re-rolling mills and pass an order
accordingly. Thereafter, the Commissioner may determine the annual
capacity, as soon as may be, and pass an order accordingly.
-
- The capacity of production for any part of the year, or any change
in the total hot re-rolling mill capacity, shall be calculated pro rata
on the basis of the annual capacity of production determined in the
above manner stated in rule 3.
- In case a manufacturer proposes to make any change in installed
machinery or any part thereof which tends to change the value of either
of the parameters 'd', 'n', 'e', 'i' and 'speed of rolling' referred to
in sub- rule (3) of rule 3, such manufacturer shall intimate about the
proposed change to the Commissioner of Central Excise in writing, with a
copy to Assistant Commissioner of Central Excise or Deputy Commissioner
of Central Excise, at least one month in advance of such proposed
change, and shall obtain the written approval of the Commissioner before
making such change. Thereafter the Commissioner of Central Excise shall
determine the date from which the change in the installed capacity shall
be deemed to be effective.
- In case, the annual capacity determined by the formula in sub-rule (3)
of rule 3 in respect of a mill, is less than the actual production of the
mill during the financial year 1996-97, then the annual capacity so
determined shall be deemed to be equal to the actual production of the mill
during the financial year 1996-97
HOT-AIR STENTER INDEPENDENT TEXTILE PROCESSORS ANNUAL CAPACITY
DETERMINATION RULES, 2000
M.F. (D.R.) Notification No. 14/2000-C.E. (N.T.), dated 1-3-2000
as amended by 26/2000 C.E.(N.T.) dated 31-3-2000.
(Rescinded vide Notification No. 7/2001-CE, dt.1-3-2001)
In exercise of the powers conferred by sub-section (2) of section 3A of the
Central Excise Act, 1944 (1 of 1944) and in supersession of the Hot-air Stenter
Independent Textile Processors Annual Capacity Determination Rules, 1998,
published in the Gazette of India, Extraordinary, vide notification No.
42/98-Central Excise(N.T.), dated the 10th December, 1998, the Central
Government, hereby makes the following rules to provide for determination of the
annual capacity of production of certain goods notified under sub-section (1) of
said section 3A, namely :-
- Short title and commencement. -
- These rules may be called the Hot-air Stenter Independent Textile
Processors Annual Capacity Determination Rules, 2000.
- They shall come into force with effect from the 1st day of March,
2000.
- Application. -
These rules shall apply to processed textile fabrics falling under heading
Nos. 52.07,52.08, 52.09, 54.06, 54.07, 55.11, 55.12, 55.13 or 55.14, or
processed textile fabrics of cotton or man-made fibres, falling under
heading Nos. or sub-heading
Nos.58.01,58.02,5806.10,5806.40,6001.12,6001.22,6001.92,6002.20, 6002.30,
6002.43 or 6002.93, of the First Schedule to Central Excise Tariff Act, 1985
(5 of 1986), for determining the annual capacity and the average value of
production of an independent processor if such textile fabrics are
manufactured or produced with the aid of a hot-air stenter.
- Declaration to be filed by independent processor. -
- An independent processor shall declare -
- the number of hot-air stenters installed in his factory;
- the name of the manufacturer of each of the hot-air
stenter, its identification no.and the date of its purchase;
- the number and size (both the length and width in centimetres)
of chambers in each of the hot-air stenters;
- the total value of processed textile fabrics referred to in rule
2, produced or manufactured in the preceding financial year; and
- the total quantity of the said processed textile fabrics,
produced or manufactured in the preceding financial year;
- the total value of the said processed textile fabrics, cleared
from the factory in the preceding financial year; and
- the total quantity of the said processed textile fabrics,
cleared from the factory in the preceding financial year, to the
Deputy Commissioner of Central Excise or the Assistant Commissioner
of Central Excise, as the case may be, with a copy to the
Superintendent of Central Excise.
- With effect from 1st of April, 2000, the independent processor shall
also file an annual declaration, indicating whether he seeks to retain
the option for redetermination of the duty liability on the basis of
actual production, in terms of sub-section (4) to section 3A or not,
prior to the commencement of the relevant financial year, and the option
so exercised shall not be withdrawn during any part of such financial
year :
Provided that in respect of new units commencing production during the
course of a financial year, such declaration shall be filed prior to the
commencement of commercial production and the option exercised through
such declaration shall not be withdrawn during the remaining part of
that financial year.
Provided that in respect of new units Commencing production during the
Course of a financial year, such declaration shall be filed prior to the
Commencement of Commercial production and the option exercised through
such declaration shall not be with drown during the remaining part of
that financial year
- On receipt of the declaration referred to in rule 3, The Deputy
Commissoner of Central Excise or the Assistant Commissioner of Central
Excise shall take necessary action to verify its correctness and
ascertain the correct value of each of the parameters given in such
declaration :
Provided that The Deputy Commissoner of Central Excise or the Assistant
Commissioner of Central Excise may, if he so desires, consult any
technical authority for this purpose;
- Determination of annual capacity and average value. -
- The annual capacity of production of processed textile fabrics
specified in rule 2 in respect of a factory of an independent processor
referred to in rule 2 shall be determined in the following manner,
namely :-
- the number of chambers (of a hot-air stenter),
each of which having a rail length of upto 3.05 metre on each side,
installed in such factory shall be construed as one chamber and any
fraction exceeding such rail length of any such chamber shall be
computed on a pro-rata basis;
- the production capacity of a chamber in terms of quantity
shall be deemed to be 1 lakh sq. mtr. per chamber per month.
- The average value of the processed textile fabrics (per square metre)
referred to in rule 2 for such factory shall be arrived at by dividing
the total value of such processed fabrics cleared from the factory in
the immediately preceding financial year by the total quantity of such
processed fabrics cleared during that preceding financial year:
Provided that in the case of textile fabrics produced by a new unit or a
closed unit of such factory for which average value as specified above
cannot be calculated, the average value of such fabrics shall be as
declared by the independent processor at the time of making the
declaration. But the amount of duty payable on such fabrics shall be
re-worked out at the end of a financial year on the basis of actual
average value of the textile fabrics produced in the financial year in
such factory;
- The Deputy Commissoner of Central Excise or the Assistant
Commissioner of Central Excise as the case may be shall, as soon as may
be, after determining the annual capacity of production and the average
value of processed textile fabrics and the number of chambers (of a
hot-air stenter) of the factory of the independent processor, by an
order, intimate the same as also the rate of duty applicable to the
independent processor :
Provided that the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, may determine the
annual capacity of production on a provisional basis pending
verification of the declaration furnished by the independent processor
and pass an order accordingly. Thereafter, the Commissioner may
determine, the annual capacity, as soon as maybe, and pass an order
accordingly.
- The capacity of production for any part of the year, or any change
in the total number of chambers, shall be calculated pro-rata on the
basis of annual capacity of production determined in the manner
specified in sub-rule (1).
- Changes in parameters for capacity determination. -
In case an independent processor proposes to make any change in the
installed machinery or any part thereof which tends to change any of the
parameters referred to in rule 4, he shall intimate, about the proposed
change, to the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, in writing, with a copy
to the Superintendent of Central Excise, on month in advance of such
proposed change, and shall obtain the written approval of the Deputy
Commisioner of Central Excise or the Assistant Commissioner of Central
Excise, as the case may be, before making such change, whereafter the Deputy
Commissioner of Central Excise or the Assistant Commissioner of Central
Excise, as the case may be, shall determine the date from which the change
in the annual capacity shall be deemed to be effective.
Explanation I. -
For the purposes of this notification, a float drying machine or any other
equipment, except the galleries, of a length 3.05 metres installed in or
attached to a stenter for aiding the process of heat setting or drying of
the fabrics shall be deemed to be one chamber of a stenter and any fraction
of such length shall be computed on a pro-rata basis.
Explanation II. -
Unless otherwise specified in any rule made under section 3A of the Central
Excise Act, 1944(1 of 1944), for the purposes of this notification the goods
shall be deemed to have been manufactured or produced with the aid of a
hot-air stenter, if they are cleared from a factory where a hot-air stenter
is installed, irrespective of whether it is in use or not, or is in working
condition or not.
Explanation III. -
For the purposes of this notification, -
- "independent processor" means a manufacturer who is engaged
primarily in the processing of fabrics with the aid of power and who
also has the facility in his factory (including plant and equipment) for
carrying out heat-setting or drying, with the aid of power or steam in a
hot-air stenter and who has no proprietary interest in any factory
primarily and substantially engaged in the spinning of yam or weaving or
knitting of fabrics, on or after the 10th December, 1998;and
- "value" means the value as determined under section 4 of the Central
Excise Act, 1944(1 of 1944).
Explanation IV. -
For removal of doubts, it is clarified that the hot-air stenters
installed in the factory, but which are permanently closed or sealed as
on the 1st day of March, 2000 shall, subject to such safeguards,
conditions and limitations as may be specified by the Commissioner of
Central Excise in this regard, not be taken into account for the
purposes of determination of the annual capacity of production of the
independent processor.
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