1st March, 2003
Notification No. 7/2003 - Central Excise
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with sub-
section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), 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, -
(a)
from so much of the duty of excise specified thereon under the First Schedule (hereinafter referred to as 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;
(b)
in respect of goods specified against S.Nos. 16 and 19, from the whole of the Special duty of excise leviable thereon under
the Second Schedule to the Central Excise Tariff Act; and
(c)
from so much of the duty of excise specified in the First Schedule to the said Additional Duties of Excise (Goods of Special
Importance) Act (herein after referred to as the First Schedule (GSI)), as is in excess of the amount calculated at the rate
specified in the corresponding entry in column (5) of the said Table.
Explanation .- For the purposes of this notification, the rates specified in columns (4) and (5) of the said Table are ad valorem
rates, unless otherwise specified.
Table
S.
No.
Chapter or heading No. or sub-heading
No.
Description of goods
Rate
under the
First
Schedule
Rate
under the
First
Schedule
(GSI)+
(1)(2) (3) (4) (5)
153.04, 53.05, 53.08 or 55.10
Sisal and manila fibres and yarns thereof or yarn of artificial
staple fibre of heading 55.10, if, in or in relation to manufacture
of which, no process is ordinarily carried on with the aid of
power
Nil -
252.07, 52.08 or 52.09
Cotton fabrics processed without the aid of power or steam
Explanation .- For the purposes of this exemption, cotton
fabric subjected to any one or more of the following processes
with the aid of power, shall be deemed to have been
processed without aid of power or steam, namely:-
(a)
lifting of water to overhead tanks or emptying in
underground tanks or handling of chemicals such as acids,
chlorine, caustic soda;
(b)
mixing or stirring of dyes, kerosene, caustic soda, gum
paste and emulsion, etc., by stirrer; or
(c)
colour fixation by passing steam or applying sodium
silicate.
Nil Nil
3
5406.21, 5406.22,
5406.23, 5406.29,
5407.21, 5407.22,
5407.23 5407.29, 55.11, 55.12, 55.13
or 55.14
Woven fabrics of synthetic or artificial staple fibre or filament
yarn, processed without the aid of power or steam, with or
without the use of machines, excluding,-
(a)
fabrics of polyester filament yarn containing cotton and
polyester staple fibre in which the proportion of polyester
staple fibre or filament yarn or both is less than 70% by
weight of the total fibre content;
(b)
fabrics containing only polyester and cotton in which the
proportion of polyester staple fibre is less than 70% by
weight of total fibre content; and
(c)
fabrics containing only polyester staple fibre and any one or
more of the following fibres, namely, cotton, ramie and
artificial fibre in which the proportion of polyester staple
fibre is more than 40% but less than 70% by weight of total
fibre content.
Nil Nil
4.
51.10, 51.11, 5406.21, 5406.22,
5406.23, 5406.29, 5407.21, 5407.22,
5407.23 or 5407.29
Fabrics, woven on handlooms and processed without the aid
of power or steam
Nil Nil
556.07 or 56.09 All goods made without the aid of power Nil -
658.01, 58.02 or 58.06
All goods in or in relation to the manufacture of which no
process is ordinarily carried on with the aid of power or steam
Nil Nil
760.01 or 60.02
Knitted or crocheted fabrics, processed without the aid of
power or steam
Nil Nil
8Any Chapter
Fabrics or garments manufactured by a charitable institution
Explanation.- For the purposes of this exemption "charitable
institution" means a non-profit institution or establishment or
organization constituted solely for charitable purposes such as
provision of assistance, rehabilitation, education and medical
and other relief to women, children, poor, orphans, aged,
distress, sick, physically or mentally disabled.
Nil Nil
95506.20
Polyster staple fibres, carded, combed or otherwise
processed for spinning, containing cotton (not containing any
other textile material) and in which the proportion of polyster
staple fibre is less than 70 per cent. by weight of total fibre
content manufactured by a factory owned by the Khadi and
Village Industries Commission or any organization approved
by the said Commission:
Provided that the manufacturer produces at the time of
clearance a certificate from an authorized officer of the said
Commission, that these fibres shall be hand spun into yarns by
a factory owned by the said Commission or any organization
approved by the said Commission, for used only in the
manufacture of Poly Vastra, that is to say, any cloth, containing
cotton and polyester, woven on handloom from yarns hand
spun in India
Nil -
105105.10
Carded wool, popularly known as 'lefa' intended for making
hand spun yarn of upto 10 counts
Nil -
1151.06
Yarn of wool of counts upto 10 in plain (straight) reel hanks,
whether single or multiple (folded) and intended for
manufacturing carpets
Nil -
1252.05 or 52.06
Cotton waste yarn of upto 2 counts manufactured from cotton
waste on condenser card machines, in plain (straight ) reel
hanks
Nil -
1352
Cotton yarn of sub heading Nos. 5205.11 and 5205.19 and
sewing thread of sub-heading No. 5204.10, not containing any
other textile material
8% -
14
5004.19, 5106.11, 5106.12, 5106.13,
5107.11, 5107.12, 51.08, 51.09, 52.04,
5205.11, 5205.19, 5206.11, 5206.12,
5306.11, 5306.19, 5308.12, 5308.13,
5308.14, 5308.19, 54.01, 5402.10,
5402.31, 5402.39, 5402.41, 5402.49,
5402.51, 5402.59, 5402.61, 5402.69,
54.03, 54.04, 54.05, 55.08, 55.09 and
55.10
Yarn and sewing thread 12% -
15
51.06, 51.07, 5205.11, 5205.19,
5206.11, 5206.12, 55.09 and 55.10
The following goods purchased by a registered Apex
Handloom Co-operative Society, the National Handloom
Development Corporation or a State Government Handloom
Development Corporation, and the payment for which is made
by cheque drawn by such Co-operative Society or
Corporation, as the case may be, on its own bank account,
namely:-
(a) yarn of wool falling under heading Nos. 51.06 and 51.07;
(b) cotton yarn (not containing synthetic staple fibres), supplied
in cross reel hanks and falling under sub heading Nos.
5205.11, 5205.19, 5206.11or 5206.12;
(c) cotton yarn, containing polyester staple fibre and not
containing any other textile material, in which the proportion of
polyester staple fibre is more than 40% by weight of the total
fibre content, and falling under sub- heading Nos. 5206.11or
5206.12;
(d) yarn of counts not exceeding 25 of artificial staple fibre, not
containing synthetic staple fibres and supplied in cross reel
hanks and falling under heading Nos. 55.09 or 55.10;
(e) yarn of polyester staple fibre containing cotton (not
containing any other textile material) and in which the
proportion of polyester staple fibre is less than 70 per cent. by
weight of the total fibre content and falling under heading Nos
55.09 or 55.10;
(f) yarn of polyester staple fibre containing cotton, ramie or
artificial staple fibre or any one or more of these fibres (not
containing any other textile material) and in which the
proportion of polyester staple fibre is less than 70 per cent. by
weight of the total fibre content falling under heading Nos.
55.09 or 55.10; or
(g) yarn of artificial staple fibre containing polyester staple
fibres (not containing any other textile material) and in which
the proportion of polyester staple fibre is more than 40% by
weight of the total fibre content and in or in relation to the
manufacture of which any process is ordinarily carried on with
the aid of power falling under heading Nos. 55.09 or 55.10:
Provided that the manufacturer produces at the time of
clearance the certificate from an authorized officer of the said
society or corporations, as the case may be, that the yarn is
going to be used only on handloom.
Nil -
1652, 54 or 55
Yarn consumed within the factory of production in the
manufacture of multiple (folded) or cabled yarn, whether or not
dyed, printed, bleached or mercerised, and such multiple
(folded) or cabled yarn is purchased by a registered Apex
Handloom Co-operative Society, the National Handloom
Development Corporation or a State Government Handloom
Development Corporation, and the payment for which is made
by cheque drawn by such Co-operative Society or
Corporation, as the case may be, on its own bank account
Nil -
175205.11, 5205.19, 5206.11 or 5206.12
Cotton yarn, containing polyester staple fibre and not
containing any other textile material, in which the proportion of
polyester staple fibre is more than 40% by weight of the total
fibre content, purchased by a factory owned by the Khadi and
Village Industries Commission or any organization approved
by the Khadi and Village Industries Commission and the
payment for which is made by KVIC or such organisation
approved by KVIC, as the case may be, on its own bank
account:
Provided that,-
(i) these goods are purchased by a factory owned by the Khadi
and Village Industries Commission or any organization
approved by the said Commission and the payment for such
goods is made by the cheque drawan by the said commission
or such organization approved by the said Commission, as the
case may be, on its own bank account; and
(ii) the manufacturer produces at the time of clearance a
certificate from an authorized officer of the said Commission,
that the yarn shall be used only in the manufacture of Poly
Vastra, that is to say, any cloth, containing cotton and
polyester, woven on handloom from yarns hand spun in India.
Nil -
1855.09
Yarn of polyester staple fibre containing cotton (not containing
any other textile material) and in which the proportion of
polyester staple fibre is less than 70 per cent. by weight of the
total fibre content, manufactured or purchased by a factory
owned by the Khadi and Village Industries Commission or any
organization approved by the Khadi and Village Industries
Commission:
Provided that,-
(i) these goods are purchased by a factory owned by the Khadi
and Village Industries Commission or any organization
approved by the said Commission and the payment for such
goods is made by the cheque drawan by the said commission
or such organization approved by the said Commission, as the
case may be, on its own bank account; and
(ii) the manufacturer produces at the time of clearance a
certificate from an authorized officer of the said Commission,
that the yarn shall be used only in the manufacture of Poly
Vastra, that is to say, any cloth, containing cotton and
polyester, woven on handloom from yarns hand spun in India.
1954.02
Polyester filament yarn (other than textured) of denierage
above 750 and of tenacity exceeding 6.5 grams per denier
16% -
20
5402.10, 5402.41, 5402.49, 5402.51,
5402.59, 5402.61 or 5402.69
Nylon filament yarn or polypropylene multifilament yarn of 210
deniers with tolerance of 6 per cent. provided no credit under
rule 3 or rule 11 of the CENVAT Credit Rules, 2002, has been
taken in respect of the capital goods used exclusively or inputs
used in the manufacture of these goods
Nil -
2159.01, 59.02, 59.03, 5907.11, 5907.12All goods 16% Nil
22
6001.11, 6001.21, 6001.91, 6002.42
and 6002.92
Knitted or crocheted fabrics of cotton, not containing any other
textile material
8% Nil
23
51.10, 51.11, 52.07, 52.08, 52.09,
54.06, 54.07, 55.11, 55.12, 55.13,
55.14, 5801.11, 5801.12, 5801.21,
5801.22, 5801.31, 5801.32, 5802.21,
5802.22, 5802.31, 5802.32, 5802.51,
5802.52, 58.03, 5804.11, 5804.12,
6001.11, 6001.12, 6001.21, 6001.22
6001.91, 6001.92, 6002.10, 6002.20,
6002.30, 6002.42, 6002.43, 6002.92,
6002.93
All fabrics 8% 2%
24
51.12, 53.09, 53.10, 53.11, 5801.91,
5801.92 5802.41, 5802.42, 5804.19,
58.06, 58.09, 6001.19, 6001.29,
6001.99, 6002.41, 6002.49, 6002.91
and 6002.99
All fabrics 10% -
2551, 52, 53, 54 or 55
Fabrics woven on handlooms and processed, by a factory
owned by a State Government Handloom Development
Corporation or an Apex Handloom Co-operative Society
approved, in either case, by the Government of India on the
recommendation of the Development Commissioner of
Handlooms, or by a factory owned by the Khadi and Village
Industries Commission or any organisation approved by the
Khadi and Village Industries Commission for the purpose of
processing such fabrics
Nil Nil
2651.10, 51.11, 52.07, 52.08 or 52.09
Fabrics woven on handlooms, certified as "khadi" by the Khadi
and Village Industries Commission or by an officer duly
authorized in this behalf by the said Commission
Nil Nil
2752 or 55
Poly Vastra, that is to say, any cloth, containing cotton and
polyester, woven on handloom from yarns hand spun in India
and certified as Poly Vastra by an officer duly authorised in this
behalf by the Khadi and Village Industries Commission and
processed by a factory owned by the Khadi and Village
Industries Commission or any organisation approved by the
Khadi and Village Industries Commission for the purpose of
processing of Poly Vastra
Nil Nil
2855.11, 55.12, 55.13 or 55.14
Fabrics woven on handlooms and processed with the aid of
power or steam by a factory owned by a State Government
Handloom Development Corporation or an Apex Handloom
Cooperative Society approved by Government of India for the
development of Handlooms other than the following, namely :-
(i) fabrics containing only polyester and cotton in which the
proportion of polyester staple fibre is less than 70% by weight
of total fibre content; or
(ii) fabrics containing only polyester staple fibre and any one or
more of the following fibres, namely, cotton, ramie and artificial
fibre in which the proportion of polyester staple fibre is more
than 40% but less than 70% by weight of total fibre content
Nil Nil
29
51.10, 51.11, 52.07, 52.08, 52.09,
5406.21, 5406.22, 5406.23, 5406.29,
5407.21, 5407.22, 5407.23 or 5407.29
Fabrics woven on handlooms and processed with the aid of
power or steam by a factory owned by a registered handloom
co-operative society or any organisation set up or approved by
Government for the purpose of development of handlooms
Nil Nil
3051.10 or 51.11
Fabrics woven on handlooms and processed by an
independent processor approved in this behalf by the
Government of India on the recommendation of the
Development Commissioner for Handlooms
Explanation.- In this entry, for the purposes of the fabrics
woven on handlooms, "independent processor" means a
manufacturer who is engaged exclusively in the processing of
fabrics with the aid of power and who has no proprietary
interest in any factory engaged in the spinning of yarn of wool
or weaving of woolen fabrics
Nil Nil
31
5406.21, 5406.22, 5406.23 or
5406.29
Fabrics of polyester filament yarn containing cotton and
polyester staple fibre in which the proportion of polyester
staple fibre or filament yarn or both is less than 70% by weight
of the total fibre content and processed by a factory owned by
a registered handloom co-operative society or any
organisation set up or approved by the Government for the
purpose of development of handlooms
Nil Nil
3252, 54 or 55
Fabrics of cotton or man made fibres woven in a prison and
subjected to further process outside the prison by an
independent processor or a composite mill
If,-
(i)
a certificate to the effect that such fabrics have been woven
in a prison and have been sent for further processing to an
independent processor or a composite mill, outside the
prison is given by the Inspector General of the Prisons or
an officer duly authorised by him in this behalf in the
Government of the State or the Union territory, as the case
may be;
(ii)
a separate account is maintained in respect of such fabrics
by the said independent processor or a composite mill;
and
(iii)
the said independent processor or a composite mill
produces a certificate or evidence to the Deputy
Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be,
within a period of ninety days or such extended period as
may be permitted by the Commissioner of Central Excise,
to the effect that the said fabrics have been returned after
processing to the prison from which the fabrics were
received.
Nil Nil
335404.10
The following goods, namely:-
(a) Monofilament of high density polyethylene or polypropylene;
and
(b) Nylon monofilament yarn, of denierage 210, 330, 420, 630,
840, 1050, 1260 or 1680, with tolerance of 4 per cent. :
Provided that no credit under the CENVAT Credit Rules, 2002,
has been taken in respect of the capital goods used
exclusively or inputs used in the manufacture of these goods.
Nil -
3453, 59 or 63
Rot proofed jute products, laminated jute products and fire
resistant jute products
Nil -
35
53.10, 5702.12, 5703.20, 58.01, 58.02,
58.06, 6301.90 or 6305.10
Goods of jute Nil -
3656.02 Jute felt Nil -
375806.39
The following goods, namely :-
(a) Hair belting of wool;
(b) Strips of jute made from fabrics on which the appropriate
duty of excise under the First Schedule has already been paid
and intended for supply to the Indian Army.
Nil -
3853 or 56
Sisal and manila twist yarn, thread, ropes and twine, all sorts, if
consumed within the factory in which it is produced for the
manufacture of sisal and manila products falling under Chapter
53, 56, 57 or 63 of the First Schedule
Nil -
3959.03
Fabrics of jute, impregnated, coated, covered or laminated
with plastics
Nil Nil
4056.07
All goods (other than dipped cords falling under sub-heading
5607.90 of the First Schedule).
Nil -
4161
Articles of apparel and clothing accessories of cotton, knitted
or crocheted, not containing any other textile material
8% -
4261, 62 or 63 (other than 6307.10)
All articles of apparel and clothing accessories and other
made up textile articles (other than articles of apparel and
clothing accessories of cotton, knitted or crocheted, not
containing any other textile material)
10% -
4361 and 62
Article of apparel or clothing accessories manufactured or got
manufactured for personal use and not intended for sale
Explanation.- This exemption shall also apply to such article of
apparel or clothing accessories knitted or stitched by a tailor
from material supplied by the customer for the personal use of
the customer.
Nil -
Alok Shukla
Deputy Secretary to Government of India
F. No. 334/1/2003-TRU
