Notification New Delhi, the 1st March 2006.
No. 5 /2006-Central Excise 10 Phalguna, 1927 (Saka)
G.S.R. (E).- 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, on being satisfied that it is necessary in
the public interest so to do, hereby exempts excisable goods of the description specified in column (3) of
the Table below and falling within the Chapter, heading or sub-heading or tariff item of the First Schedule
to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Central Excise Tariff
Act), as are given in the corresponding entry in column (2) of the said Table, from so much of the duty of
excise specified thereon under the First Schedule to the Central Excise Tariff Act, as is in excess of the
amount calculated at the rate specified in the corresponding entry in column (4) of the said Table subject
to the relevant conditions specified in the Annexure to this notification, and the Condition number of
which is referred to in the corresponding entry in column (5) of the Table aforesaid.
Explanation.-For the purposes of this notification, the rates specified in column (4) of the said Table are
ad valorem rates, unless otherwise specified.
Table
S. No. Chapter or
heading or sub-
heading or tariff
item of the First
Schedule
Description of excisable goods Rate Condition
No.
(1) (2) (3) (4) (5)
1. 5402, 5403 or
5406
All goods 8% -
2. 5501, 5502,
5503, 5504,
5505, 5506 or
5507
All goods 8% -
3. 63 Mosquito nets impregnated with insecticide Nil —
4. 64 Footwear subjected to a ny one or more of the
following processes, namely:
(i) packing or repacking; or
(ii) labelling or relabelling of containers; or
(iii) adoption of any other treatment to render the
footwear marketable to the consumer.
Explanation—For removal of doubts, it is clarified
that this exemption shall not apply if any of the
processes mentioned above results in alteration in
the retail sale price already declared on the footwear.
Nil 1
5. 64 The following goods, namely:-
(a) Footwear of retail sale price not exceeding Rs.250
per pair
(b) Footwear of Retail Sale Price exceeding Rs.250
Nil
8%
2
2
and not exceeding Rs.750 per pair
Explanation.- “Retail Sale Price means the maximum
price at which the excisable goods in packaged 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 the sale.
6. 6603 Parts of walking sticks, seat sticks, whips, riding-
crops and the like
8% —
7. 68 or 69 Stoneware, which are only salt glazed Nil —
8. 68 or 69 Sand lime bricks Nil —
9. 68 Goods in which not less than 25% by weight of fly ash
or phospho-gypsum or both have been used
8% 3
10. 68 (except
6804, 6805,
6811, 6812 and
6813)
Goods, in which more than 25% by weight of red
mud, press mud or blast furnace slag or one or more
of these materials, have been used, manufactured at
the site of construction for use in construction work at
such site
Nil —
11. 68 (except
6804, 6805,
6811, 6812 and
6813)
Goods, in which more than 25% by weight of red
mud, press mud or blast furnace slag or one or more
of these materials, have been used, manufactured by
Nirman Kendras and Nirmithi Kendras
Nil 4
12. 69 Ceramic tiles subjected to the process of printing,
decorating or ornamenting in a factory which does not
have the facilities (including plant and equipment) of
producing ceramic tiles
Nil 5 and 6
13. 69 Ceramic tiles, manufactured in a factory not using
electricity for firing the kiln.
8% 7
14. 6905 10 00 Roofing tiles 8% —
15. 6908
6909
6911
6912 or
6914
All goods other than glazed tiles and broken glazed
tiles, manufactured by a manufacturer exclusively
engaged in the process of printing, decorating or
ornamenting of the said goods.
Explanation.-For the purposes of this entry, the value
of goods shall be the value charged for printing,
decorating or ornamenting of the said goods.
16% 5
16. 70 Glassware produced by mouth-blown process Nil —
17. 70 Optical glass manufactured by the Central Glass and
Ceramic Research Institute, Kolkata and intended for
use by any Department of the Central Government.
Nil —
18. 7009,
7010,
7011,
7020 00 19
7020 00 29
All goods manufactured by a manufacturer
exclusively engaged in the process of printing,
decorating or ornamenting of the said goods.
Explanation.-For the purposes of this entry, the value
of goods shall be the value charged for printing,
decorating or ornamenting of the said goods.
16% 5
7018 10 90
7018 20 00
19. 7013 All goods (other than Table and kitchenware of Glass)
manufactured by a manufacturer exclusively engaged
in the process of printing, decorating or ornamenting
of the said goods.
Explanation.-For the purposes of this entry, the value
of goods shall be the value charged for printing,
decorating or ornamenting of the said goods.
16% 5
20. 7015 10 10 Rough ophthalmic blanks, for manufacture of optical
lenses
8% —
21. 71 Primary gold converted with the aid of power from
any form of gold
Explanation.-For the purposes of the exemption,
“primary gold” means gold in any unfinished or semi-
finished form and includes ingots, bars, blocks, slabs,
billets, shots, pellets, rods, sheets, foils and wires.
Nil —
22. 7105 or 7112 Dust and powder of natural or synthetic precious or
semi-precious stones; waste and scrap of precious
metals or metals clad with precious metals, arising in
course of manufacture of goods falling in Chapter 71
Nil —
23. 7108 Gold arising in the course of manufacture of copper or
zinc by smelting
Nil —
24. 71 (I) Articles of—
(a) gold,
(b) silver,
(c) platinum,
(d) palladium,
(e) rhodium,
(f) iridium,
(g) osmium, or
(h) ruthenium;
(II) Ornaments and the like articles made of gold or
silver or platinum or any one or more of them,
whether or not set—
(a) with stones or gems (real or artificial), or with
pearls (real, cultured or imitation); or
(b) with stones, gems and pearls of the kind
mentioned at (a) or any combination thereof;
(III) Strips, wires, sheets, plates and foils of gold,
used in the manufacture of articles of jewellery and
parts thereof;
(IV) Precious and semi-precious stones, synthetic
stones and pearls
Explanation.-For the purposes of entries (I), (II) and
(III), as the case may be,-
(i) “ornament” means a thing, in any finished form,
Nil
Nil
Nil
Nil
8
8
—
—
meant for personal adornment or for the adornment of
any idol, deity or any other object of religious
worship, made of, or manufactured from, gold or
silver or platinum or any one or more of them,
whether or not set with stones or gems (real or
artificial) or with pearls (real, cultured or imitation),
or with all or any of them and includes parts, pendants
or broken pieces of ornaments;
(ii) “metal” shall include,—
(a) any alloy in which any of the metals specified
in this entry at item No.(I) above
predominates by weight over each of the other
metals specified in such item or any other
metal in such alloy;
(b) any alloy in which the gold content is not less
than 37.5 per cent by weight;
(iii) “articles” in relation to gold shall mean any thing
(other than ornaments), in a finished form, made of, or
manufactured from or containing, gold and includes
any gold coin and broken pieces of an article of gold
but does not include primary gold, that is to say, gold
in any unfinished or semi-finished form i ncluding
ingots, bars, blocks, slabs, billets, shots, pellets, rods,
sheets, foils and wires.
25. 71 Silver, platinum, palladium, rhodium, iridium,
osmium and ruthenium in their primary forms, that is
to say, any unfinished or semi-finished form including
ingots, bars, blocks, slabs, billets, shots, pellets, rods,
sheets, foils and wires.
Nil —
26. 7113 Article of jewellery on which brand name or trade
name is indelibly affixed or embossed on the articles
of jewellery itself
2% —
27. 7117 All goods 8% —
28. 72 Hot rolled or cold rolled sheets and strips cut or slit on
job work
Nil 5 and 9
29. 73 Castings and forgings, cleared for manufacture of
sewing machines or chaff cutters (whether known as
toka machine or by any other name) used for cutting
animal fodder
Nil 10
30. 7302 or 8530 Railway or tramway track construction material of
iron and steel
Explanation.-For the purposes of this exemption, the
value of goods shall be the value of goods excluding
the value of rails.
16% 11
31. 7310 or 7326 Mathematical boxes, geometry boxes and colour
boxes
Nil —
32. 7315 Chains of vehicles of heading 8712. Nil —
33. 7317 00 11 Animal shoe nails Nil —
34. 7321 or 7417 Kerosene burners, kerosene stoves and wood burning
stoves of iron or steel, copper or copper alloy
Nil —
35. 7321 or 9405 Bio-gas lights, bio-gas stoves and hot plates of iron or
steel, specially designed to operate using bio-gas
Nil —
36. 7321 11 LPG Gas stoves (with burners only, without other
functions such as grills or oven)
8% —
37. 7326 19 90 Forgings and forged products of iron or steel used in
the manufacture of parts and accessories of cycle and
cycle rickshaws falling under Chapter 40, 73, 83, 85,
87 or 95
Nil —
38. 7326 20 10 Tyre bead wire rings intended for use in manufacture
of tyres for cycles and cycle-rickshaws
Nil —
39. 7323 or
7615 19 10
Pressure cookers 8% —
40. 7402 or 7403 Unrefined copper and unwrought copper, intended for
use in the manufacture of utensils or handicrafts.
Nil 12
41. 7409 All goods other than trimmed or untrimmed sheets or
circles of copper, intended for use in the manufacture
of utensils or handicrafts
Nil 12
42. 7409 Trimmed or untrimmed sheets or circles of copper,
intended for use in the manufacture of handicrafts or
utensils
Rs. 3500
per
metric
tonne
12 and
13
43. 7409 or 7410 Copper strip and foil, intended to be used for
manufacture of imitation “Zari”
Nil —
44. 7601 Unwrought aluminium, whether or not alloyed,
intended for use in manufacture of utensils
Nil 14
45. 7604 or 7608
or
7609 00 00
Aluminium extrusions, square tubes and round tubes
of aluminium used in the manufacture of—
(1) artificial limbs; or
(2) any of the following rehabilitation aids, namely:-
(i) Somi brace
(ii) Ash brace
(iii) Taylor brace
(iv) Four post collars
(v) Thumb splint
(vi) Finger splint
(vii) Axilla crutches
(viii) Elbow crutches
(ix) Walking frames
(x) Wheel chair or Tricycle components
(xi) Braille shorthand machine
(xii) Folding cane for blind
Nil 15
46. 7606 Aluminium plates and sheets (other than circles),
intended for use in manufacture of utensils
Nil 5 and 14
47. 7606 Aluminium circles Rs. 2500 5 and 14
per
metric
tonne
48. 82 Pencil sharpeners and blades thereof Nil —
49. 8201 All goods except pruners Nil —
50. 82 Tools of two or more of the headings 8202 to 8205,
put up in sets
Nil 16
ANNEXURE
Condition
No.
Conditions
1. If manufactured out of footwear-
(i) bearing a brand name or trade name of any person;
(ii) in respect of which the retail sale price has been declared; and
(iii) in which the appropriate duty of excise under the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) or as the case may be, the additional customs duty under
the Customs Tariff Act, 1975 (51 of 1975) has already been paid.
2. This exemption shall apply only to such footwear on which the retail sale price is indelibly
marked or embossed on the footwear itself.
3. If the manufacturer maintains proper account in such form and in such manner as the
Commissioner of Central Excise having jurisdiction may specify in this behalf, for receipt
and use of fly-ash or phosphogypsum or both, in the manufacture of all goods falling under
Chapter 68 of the First Schedule and files a monthly return in the form and manner, as may
be specified by such Commissioner of Central Excise, with the Deputy Commissioner of
Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having
jurisdiction.
4. If the Nirman Kendra or the Nirmithi Kendra produces a certificate from an officer not
below the rank of the Deputy Secretary to the Government of India in the Ministry of Urban
Development, to the effect that-
(a) the said Nirman Kendra or the said Nirmithi Kendra is recognised as such by the
Government of India; and
(b) the goods manufactured by such Nirman Kendra or Nirmithi Kendra are intended for
construction of low cost houses.
5. If no credit under rule 3 or rule 11 of the CENVAT Credit Rules, 2002, has been taken in
respect of the inputs or capital goods used in the manufacture of these goods.
Explanation.- For the removal of doubts, it is hereby clarified that in respect of the goods
specified in column (3) of the Table occurring against S. No.122, this condition is intended
to have been satisfied if no credit of duty paid on,-
(i) the inputs; and
(ii) the capital goods used exclusively in the manufacture of these goods, in accordance
with sub-rule (4) of rule 6 of the CENVAT Credit Rules, 2002, has been availed under rule
3 or rule 11 of the CENVAT Credit Rules, 2002.
6. If, manufactured out of ceramic tiles, falling under Chapter 69 of the First Schedule, on
which the appropriate duty of excise under the First Schedule, or as the case may be, the
additional duty leviable under the Customs Tariff Act, 1975 has already been paid.
7. If no credit of the duty paid on the inputs used in or in relation to the manufacture of such
ceramic tiles has been taken under rule 3 or rule 11 of the CENVAT Credit Rules, 2002.
8. This exemption shall not be applicable to articles of jewellery of heading 7113 on which
brand name or trade name is indelibly affixed or embossed on the articles of jewellery itself.
9. If such goods are not produced or manufactured by a manufacturer who produces or
manufactures steel from iron ore or concentrate.
10. If, -
(a) the castings and forgings produced in a factory are used in that factory for the
production of sewing machines or chaff cutters; or
(b) the castings or forgings are supplied directly from the factory of manufacture, to the
factory of a manufacturer of sewing machines or chaff cutters and the Deputy Commissioner
of Central Excise or the Assistant Commissioner of Central Excise, as the case may be,
having jurisdiction is satisfied that the castings or forgings are intended for use in the
manufacture of sewing machines or chaff cutters.
11. If manufactured out of rails on which duty of excise has been paid and no credit of duty
paid on such rails has been taken under rule 3 or rule 11 of the CENVAT Credit Rules,
2002.
12. If such goods are not produced or manufactured by a manufacturer who produces or
manufactures copper from copper ore or copper concentrate.
13. If,-
(a) no credit of duty paid on inputs under rule 3 or rule 11 of the CENVAT Credit Rules,
2002 has been taken;
(b) the entire amount of duty is paid in cash or through accountcurrent:
Provided that the duty shall not be payable by a manufacturer who produces or
manufactures trimmed sheets or circles from duty paid untrimmed sheets or circles.
14. If such goods are not produced or manufactured by a manufacturer who produces or
manufactures aluminium from aluminium ore or aluminium concentrate.
15. Where such use is elsewhere than in the factory of production, the exemption shall be
allowed if the procedure laid down in the Central Excise (Removal of Goods at
Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed.
16. If manufactured from goods falling within heading 8202 to 8205 of the First Schedule to the
Central Excise Tariff Act, 1985, on which duty of excise specified in the First Schedule or
the additional duty leviable under the Customs Tariff Act, 1975, as the case may be, has
already been paid.
[F.No.334/3/2006-TRU]
(Ajay)
Under Secretary to Government of India
