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30 th April, 2003
Notification No. 35 / 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 first clearances for home
consumption, upto an aggregate value not exceeding twenty lakh rupees made on or after the 1
st
day of April in any financial
year, of fabrics, not subjected to any process falling under Chapter 51, 52, 54, 55, 58 or 60 of the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) (herein after referred to as the specified goods) , from the whole of the duty of excise
specified thereon in the First Schedule to the said Central Excise Tariff Act and the First Schedule to the said Additional Duties
of Excise (Goods of Special Importance) Act:
Provided that during the financial year 2003-2004, the exemption contained in this notification shall apply to the first clearances
for home consumption of the specified goods, upto an aggregate value not exceeding twenty lakh rupees made on or after the
30th day of April 2003.
2. The exemption contained in this notification shall apply subject to the following conditions, namely,-
(i)
where a manufacturer clears the
specified goods from one or more
factories, the exemption in his case shall
apply to the said aggregate value of
clearances for home consumption and
not separately for each factory;
(ii)
where the specified goods are cleared
by one or more manufacturers from a
factory, the exemption shall apply to the
said aggregate value of clearances for
home consumption and not separately
for each manufacturer;
(iii)
the aggregate value of clearances for
home consumption of specified goods,
by the said manufacturer from one or
more factories, or from a factory by one
or more manufacturers, does not exceed
twenty five lakh rupees in a financial
year:
Provided that in the financial year 2003-2004, the exemption shall apply only if the
aggregate value of clearances of specified goods, by a manufacturer from one or
more factories, or from a factory by one or more manufacturers, does not exceed
twenty five lakh rupees during the period beginning from the 30
th
day of April,
2003:
Provided further that in any financial year, if the aggregate value of clearances for
home consumption of specified goods exceeds twenty five lakh rupees, or as the
case may be, in the financial year 2003-2004, if the aggregate value of clearances
for home consumption of specified goods during the period beginning from the 30
th
day of April, 2003 exceeds twenty five lakh rupees, the said manufacturer shall
pay the amount of duty as payable, on the said first clearances of the specified
goods of twenty lakh rupees, but for the exemption contained in this notification,
within thirty days of the day when such clearance exceeds the said twenty five lakh
rupees;
(iv)
the manufacturer shall keep all
documents relating to purchase of yarns;
(v)
the manufacturer may opt not to avail the
exemption contained in this notification
and clear the specified goods on
payment of normal rate of duty. However,
once such option has been exercised
during a financial year, the said
manufacturer shall not be allowed to
avail the exemption during the remaining
part of that financial year.
Explanation .- For the purposes of this notification,-
(A)
"value" means the value as determined in accordance with the provisions of section 4 of the said Central Excise Act;

(B)
"normal rate of duty" means the duty of excise specified in the First Schedule to the said Central Excise Tariff Act and the
First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act read with any relevant notification
(other than this notification) issued under sub-section (1) of section 5A of the said Central Excise Act;
V. Sivasubramanian
Deputy Secretary to the Government of India
F.No B3/5 /2003-TRU