31
st
March, 2003
Notification No. 23 /2003 - Central Excise
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) ( hereinafter
referred to as the Central Excise Act), the Central Government, 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 No. or sub-heading No. of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter
referred to as the Central Excise Tariff Act), specified in the corresponding entry in column (2) of the said Table, produced or
manufactured in an export oriented undertaking or an Electronic Hardware Technology Park (EHTP) Unit or a Software
Technology Park ( STP) Unit and brought to any other place in India in accordance with the provisions of Export and Import
Policy and subject to the relevant conditions specified in the Annexure to this notification, and referred to in the corresponding
entry in column (5) of the said Table, from so much of the duty of excise leviable thereon under section 3 of the Central Excise
Act as specified in the corresponding entry in column (4) of the said Table.
Table
Sr.No.
Chapter
or
heading
No. or
sub-
heading
No.
Description of
Goods
Amount of Duty Conditions
(1)(2) (3) (4) (5)
1.
Any
Chapter
All goods
Duty of excise leviable thereon as is equivalent to the special additional
duty of customs leviable on such goods under section 3 A of the Customs
Tariff Act, 1975 (51 of 1975) read with proviso to sub-section (1) of section
3 of the said Central Excise Act, 1944.
1
2.
Any
Chapter
All goods
In excess of the amount equal to fifty per cent. of the duty leviable under
section 3 of the Central Excise Act:
Provided that the duty payable in accordance with this notification in respect
of the said goods shall not be less than the duty of excise leviable on the
like goods produced or manufactured outside the export oriented
undertaking, Electronic Hardware Technology Park unit or Software
Technology Park unit, which is specified in the said Schedule read with the
any other relevant notification issued under sub-section (1) of section 5A of
the Central Excise Act:
Provided further that nothing contained in the first proviso shall apply to the
goods which are chargeable to "Nil" rate of duty leviable under section 12 of
the Customs Act, 1962 read with any other notification for the time being in
force issued under sub-section (1) of section 25 of the said Customs Act.
Illustration.- Assuming product X has the value Rs. 100 under section 14 of
the Customs Act,1962 and is chargeable to basic custom duty of 25% ad
valorem, additional duty of 16% ad valorem and special additional duty of
4% ad valorem. The computation of duty required to be paid would be as
follows:
Basic Customs duty = Rs. 25/-
Value for the purpose of calculation of additional duty= Rs. 100/- + Rs. 25/-
= Rs. 125/-
Additional duty= 16% of Rs.125/-= Rs. 20/-
Value for the purpose of special additional duty if leviable = Rs. 100/- + Rs.
25/- + Rs. 20/- = Rs. 145/-
special additional duty if leviable= 4% of Rs. 145/-= Rs. 5.8/-
Total duty payable but for this exemption= Rs. 25/-+ Rs. 20/- + Rs. 5.80/-=
Rs. 50.80/-
50% of aggregates of the duties of customs= 50% of Rs.50.80/-= 25.40/-
Duty required to be paid in accordance with this notification is Rs. 25.40/-
provided it is not less than the duty of excise leviable on like goods
produced or manufactured outside the oriented undertaking, etc.
2
3.
Any
Chapter
All goods other than
those referred to in
Sr. Nos. 5, 6 and 7 of
this Table.
In excess of amount equal to aggregate of duties of excise leviable under
Section 3 of the Central Excise Act or under any other law for the time being
in force on like goods produced or manufactured in India other than in an
export oriented undertaking, if sold in India.
3
4.
Any
Chapter
All goods produced
or manufactured
wholly from the raw
materials produced
or manufactured in
India, other than those
referred to in Sr. Nos.
5, 6 and 7 of this
table.
in excess of amount equal to 30% of the duty payable under section 3 of the
Central Excise Act, 1944.
Illustration.- Assuming product X has the value Rs. 100 under section 14 of
the Customs Act,1962 and is chargeable to basic custom duty of 25% ad
valorem, special additional duty of 4% ad valorem and not chargeable to
additional duty. The computation of duty required to be paid would be as
follows:
Basic Customs duty = Rs. 25/-
Value for the purpose of special additional duty if leviable = Rs. 100/- + Rs.
25/- = Rs. 125/-
special additional duty if leviable= 4% of Rs. 125/-= Rs. 5.0/-
Total duty payable but for this exemption= Rs. 25/-+ Rs. 5.00/-= Rs. 30.00/-
Thirty per cent. of the aggregates of the duties of customs= 30% of
Rs.30.00/-= 9.00/-
Duty required to be paid in accordance with this notification = Rs. 9.00/-
4
5.52
Cotton fabric (not
containing any other
textile material), not
subjected to any
process,
In excess of amount equal to fifty per cent. of the aggregate duty, not
reduced by any other notification for the time being in force:
Provided that the fifty per cent. of the aggregate duty leviable on the goods
shall be apportioned in the ration 2:1 between the duty leviable under the
said Central Excise Tariff Act and the Additional Duties of Excise (Goods of
Special Importance)Act, 1957 ( 58 of 1957).
Explanation .- For removal of doubt, it is clarified that the value of the goods
shall be determined in terms of the section 4 of the Central Excise Act.
5
6.
52, 54 or
55
Fabrics of -
1. cotton
(containing any
other textile
material),
2. man-made
fibres, -
not subjected to any
process
In excess of amount equal to fifty per cent. of the aggregate duty, not
reduced by any other notification:
Provided that the fifty per cent. of the aggregate duty leviable on the goods
shall be apportioned in the ration 2:1 between the duty leviable under the
Central Excise Tariff Act, 1985 ( 5 of 1986) and the Additional Duties of
Excise ( Goods of Special Importance)Act, 1957 ( 58 of 1957).
Explanation .- For removal of doubts, it is clarified that the value of the
goods shall be determined in terms of the section 4 of the Central Excise
Act.
5
7.60
(i) Knitted or
crocheted fabrics of
cotton, whether or not
processed;
(ii) Knitted or
crocheted fabrics of
man-made fibres, not
subjected to any
process,
In excess of amount equal to fifty per cent. of the aggregate duty, not
reduced by any other notification:
Provided that the fifty per cent. of the aggregate duty leviable on the goods
shall be apportioned in the ration 2:1 between the duty leviable under the
said Central Excise Tariff Act and the said Additional Duties of Excise (
Goods of Special Importance)Act.
Explanation .- For removal of doubts, it is clarified that the value of the
goods shall be determined in terms of the section 4 of the Central Excise
Act.
5
8.71 Plain Gold JewelleryIn excess of Rs. 250 per 10Gms. 6
9.71
Studded Gold
Jewellery
In excess of 5% ad valorem. 6
10.71 Plain Silver JewelleryIn excess of Rs. 500 per Kg. 6
11.
Any
Chapter
Rags, trimmings and
tailor cuttings arising
in the course of
manufacture of ready
made garments
In excess of "Nil". 7
12.05.01
Waste of fish or
crustaceans,
mollusks or other
aquatic invertebrates
In excess of "Nil". -
13.23.01Castor oil cakes,In excess of "Nil". 8.
14.23.02Guar meal In excess of "Nil". 9
15.52.02
Cotton waste
(including yarn waste
and garneted stock)
In excess of "Nil". -
16.
53.07,
53.10,
5702.12,
5703.20,
58.01,
58.02,
58.06 or
6305.10
Yarn of jute and
goods of jute.
In excess of "Nil". 10
17.
Any
Chapter
Bone meal. In excess of "Nil". 10
18.
Any
Chapter
Rice husk and shark,
residue of wheat,
residue of pulses;
and residue of any
other cereal.
In excess of "Nil". 10
19
Chapter
9
Tea waste, and
coffee waste.
In excess of "Nil". 10
20.
Any
Chapter
Waste of Castor oil
seed, waste of caster
oil derivatives; waste
of sesame seed; and
waste of any other oil
seed.
In excess of "Nil". 10
21.
Any
Chapter
Waste from food
industries.
In excess of "Nil". 10
22.
Any
Chapter
All goods
In excess of "Nil" when cleared to a person holding an advance release
order issued by the licensing authority against an Advance Licence in terms
of paragraph 4.1.1 of the Export and Import Policy, read with relevant
provisions of the Handbook of Procedures, Volume I, or a back to back
inland letter of credit issued by a bank in terms of Paragraph 4.1.9 of the
Export and Import Policy read with relevant provisions of the Handbook of
Procedures, Volume -I.
11
23.
Any
Chapter
All goods
In excess of amount equal to additional duty of customs leviable under
section 3 of the Customs Tariff Act, 1975 (51 of 1975) on similar goods if
imported, when cleared to a person holding an advance release order
issued by the licensing authority against a Duty Free Replenishment
Certificate in terms of Paragraph 4.2 of the Export and Import Policy read
with relevant provision of the Handbook of Procedures, Volume-I or a back
to back inland letter of credit issued by a bank in terms of Paragraph 4.1.9
of the Export and Import Policy read with relevant provisions of the
Handbook of Procedures, Volume-I.
11
ANNEXURE
Sr.
No.
Conditions
1.If the goods being cleared into Domestic Tariff Area are not exempted by the State Government from payment of sales tax.
2.
If,-
(i)
the goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (b), (d) and (h) of Paragraph
6.8 of the Export and Import Policy;
(ii)
exemption shall not be availed until Deputy Commissioner of Customs or Assistant Commissioner of Customs or
Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, is
satisfied with the said goods including Software, Rejects, Scrap, Waste or Remnants;
(a)
being cleared in Domestic Tariff Area, other than scrap, waste or remnants are similar to the goods which are
exported or expected to be exported from the units during specified period of such clearances in terms of Export
and Import Policy;
(b)
the total value of such goods being cleared under sub-paragraphs (a), (b) (d) and (h) of Paragraph of the Export
and Import Policy, into Domestic Tariff Area from the unit does not exceed 50% of the Free on Board value of
exports made during the year (starting from 1
st
April of the year and ending with 31
st
March of next year) by the
said unit;
(c)
the balance of the production of the goods which are similar to such goods under clearance into Domestic Tariff
Area, is exported out of India or disposed of in Domestic Tariff Area in terms of Paragraph 6.9 of the Export and
Import Policy;
(iii)
clearance of goods into Domestic Tariff Area under sub-paragraphs (a), (b), (d) and (h) of Paragraph 6.8 of the Export
and Import Policy shall be allowed only when the unit has achieved positive Net Foreign Exchange Earning ; and
(iv)
clearance of goods into Domestic Tariff Area under sub-paragraph (a) of Paragraph 6.8 of the Export and Import
Policy in excess of 5% of free on board value of exports made by the said unit during the year (starting from 1
st
April
of the year and ending with 31
st
March of the next year) shall be allowed only when the unit has achieved positive Net
Foreign Exchange Earning.
3.
If,-
(i) the goods are produced or manufactured wholly from the raw materials produced or manufactured in India;
(ii) the goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (b), (d) and (h) of Paragraph
6.8 of the Export and Import Policy; and
(iii) such finished goods, if manufactured and cleared by the unit other than export oriented undertaking are not wholly
exempt from duties of Excise or are not chargeable to "NIL" rate of duty.
4.
If,-
(i) the goods are produced or manufactured wholly from the raw materials produced or manufactured in India;
(ii) such finished goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (b), (d) and (h) of
Paragraph 6.8 of the Export and Import Policy; and
(iii) the goods, if manufactured and cleared by the unit other than export oriented undertaking are wholly exempt from
duties of Excise or are chargeable to "NIL" rate of duty.
5.
If the goods are cleared into Domestic Tariff Area in accordance with sub-paragraphs (a), (b), (d) and (h) of Paragraph 6.8
of the Export and Import Policy.
6.If the goods are cleared into Domestic Tariff Area in accordance with Paragraph 6.8 ( c) of the Export and Import Policy.
7.
If the percentage of waste material in the form of rags, trimmings and tailor cutting does not exceed the percentage fixed in
this regard by the Board of Approvals for export oriented undertakings or as the case may be, by the Development
Commissioner.
8.If the goods are manufactured from indigenous castor oil seeds on indigenous plant and machinery.
9.If the goods are manufactured wholly from indigenous guar seeds.
10.If the goods are manufactured wholly from indigenous raw materials.
11.
If,-
(i) the Advance Licence holder/ Duty Free Replenishment Certificate holder produces the said advance release order
specifying therein the quantity, description (including the technical specifications) and the value of each of the said goods
permitted to be cleared in accordance with this notification or, as the case may be, his copy of back to back inland letter of
credit specifying therein the name and address of the indigenous supplier in original before the proper officer of Central
Excise or Customs; and
(ii) the quantity and the value of each of the items are debited by the proper officer of Central Excise or Customs in the said
advance release order or as the case may be, the back to back inland letter of credit, before allowing clearance of the said
goods.
2. The notifications of the Government of India in the erstwhile Ministry of Finance, Department of Revenue vide Nos.
103/93-Central Excise, dated 27
th
December, 1993 (G.S.R. 783 (E), dated the 27
th
December, 1993, 2/95-Central Excise,
dated the 4
th
January, 1995 (G.S.R 9(E), dated the 4
th
January, 1995) , 6/97-Central Excise, dated 1
st
March, 1997 (G.S.R.
112 (E), dated the 1
st
March, 1997), 8/97-Central Excise, dated the 1
st
March, 1997 (G.S.R. 114(E), dated the 1
st
March,
1997), 20/97-Central Excise, dated the 11
th
April, 1997 ( G.S.R 219 (E), dated the 11
th
April, 1997), 13/98-Central Excise,
dated the 2
nd
June, 1998 (G.S.R 308 (E), dated the 2
nd
June, 1998), 28/2001-Central Excise, dated the 16
th
May, 2001
(G.S.R. 359 (E), dated the 16
th
May, 2001), and 20/2002-Central Excise, dated 1
st
March, 2002 (G.S.R. 141(E), dated the 1
st
March, 2002) are hereby rescinded.
3. This notification shall come into force on the 1
st
day of April, 2003.
Explanation.- For the purposes of this notification,-
(i)" aggregates duty" means aggregate of ,-
(i) the duty of excise specified in the First Schedule of the Central Excise Tariff Act, 1985 (5 of 1986); and
(ii) the duty of excise specified in the First Schedule to the Additional Duties of Excise ( Goods of Special Importance)
Act, 1957 ( 58 of 1957);
(ii)
"Export and Import Policy" means the Export and Import Policy, 2002 - 2007 published by the Government of India in the
Ministry of Commerce and Industries vide notification No. 1(RE-2003) /2002-2007, dated the 31
st
March, 2003, as
amended;
(iii)
"export oriented undertaking" has the same meaning as assigned to "hundred percent. export oriented undertaking" in
clause (ii) to the Explanation of sub-section (1) of section 3 of the Central Excise Act, 1944 ( 1 of 1944);
(iv)
"Electronic Hardware Technology Park unit " means a unit established under and in accordance with the Electronic
Hardware Technology Park (EHTP) Scheme published by the Government of India in the Ministry of Commerce vide
notification No. 5(RE- 95) 92-97, dated 30
th
of April, 1995 and approved by an Inter Ministerial Standing Committee
appointed by the Government of India in the Ministry of Industry (Department of Industrial Development) vide notification
No. S.O.117 (E), dated the 22
nd
February, 1993;
(v)
"Handbook of Procedures, Volume I" means the Handbook of Procedures, Volume-I, 2002-2007 published by the
Government of India in the Ministry of Commerce and Industry vide Public Notice No. 1( RE-2003) /2002-2007, dated the
31
st
March, 2003, as amended from time to time;
(vi)
"Software Technology Park unit" means a unit established under and in accordance with Software Technology Parks
(STP) Scheme published by the Government of India in the Ministry of Commerce vide notification No. 4/(RE-95)/92-95,
dated 30
th
April, 1995 and approved by an Inter Ministerial Standing Committee appointed by the Government of India in
the Ministry of Industry (Department of Industrial Development) vide notification No. S.O. 117(E) dated the 22
nd
February,
1993;
(vii)
"Domestic Tariff Area" means India except special economic zones and export oriented undertaking, Software
Technology Park units and Electronic Hardware Technology Park units.
D. S. Garbyal
Under Secretary to the Government of India
F. No. 305/45/2003-FTT
