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30th April, 2003
N otification No. 34/ 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), 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 five lakh rupees made on or after the 1
st
day of April in any
financial year, of readymade garments and clothing accessories, not bearing a brand name or trade name, whether registered
or not, of another person, falling under chapter 61 or 62 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:
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, up to an aggregate value not exceeding twenty five lakh rupee s made on or
after the 30
th
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
thirty 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
thirty lakh rupees during the period beginning from the 30
st
day of April, 2003:
Provided further that in any financial year, if the aggregate value of clearances for
home consumption of specified goods exceeds thirty 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 30th
day of April, 2003 exceeds thirty lakh rupees, the said manufacturer shall pay the
amount of duty as payable, on the said first clearances of the specified goods of
twenty five lakh rupees, but for the exemption contained in this notification, within
thirty days of the day when such clearance exceeds the said thirty lakh rupees;
(iv)
the manufacturer shall keep all
documents relating to purchase of
fabrics;
(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)
"brand name" or "trade name" means a brand name or a trade name, whether registered or not, that is to say, a name or a
mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified
goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods
and some person using such name or mark with or without any indication of the identity of that person;

(B)
"value" means the value as determined in accordance with the provisions of section 4 of the said Central Excise Act or the
tariff value fixed under section 3 of that Act;
(C)
"normal rate of duty" means the duty of excise specified in the First Schedule to the said Central Excise Tariff 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