Trade Notice - 06/2003

SUB:-   CHANGES RELATING TO SOME OF THE BUDGET PROPOSALS.

            Trade is informed that certain changes have been made in the Central Excise Rules and CENVAT Credit Rules w.e.f. 1^st April, 2003. The salient features of these changes are indicated below:-

(1)  The exemption notification No.8/2003-CE and 9/2003-CE have been amended so as to:

(a)                exclude terry towels under Chapter 63 from the SSI exemptions scheme;

(b)                provide that for determining the first clearance of Rs.1 crore, clearances of exempted goods shall not be taken into account;

(c)                provide that for determining the aggregate value of Rs.300 lakhs, clearances to EOUs, EPZs, etc. shall not be taken into account.

(2)                Rule 8(3) of the Central Excise Rules, 2002 has been amended to provide that the provisions relating to penal provisions for non-payment of the duty assessed shall be resorted to, only, if the duty and the interest are not paid within one month of the due date.

(3)                As regards textiles, the following changes have been made:

(a)                The concessional import duty of 5% has been extended to goods falling under heading No.51.01

(b)                Rule 12B of the Central Excise Rules has been amended so as to extend the facility of job work to goods of Chapter 63 also.

(c)                It has been provided that the credit of duty in respect of inputs as well as inputs contained in finished goods lying in stock on 31.3.2003 will be allowed if the declaration is made on or before 7^th April, 2003. The rates at which the credit would be allowed will be separately notified shortly.

(d)                Notification No.35/2001-CE (NT) has been amended to provide that in respect of a manufacturer or trader for goods falling under Chapter 50 to 63, single registration may be obtained even for multiple premises, provided such premises are declared in the application form and all such premises are in the jurisdiction of the same Commissionerate.

(e)                Rule 7 of the CENVAT Credit Rules, 2002 has been amended to provide for endorsement of the documents evidencing payment of duty by the textile trader provided the entire consignment covered under the said document is endorsed in full.

(f)                 Printed frames for use within the factory of production has been exempted from payment of excise duty.

(g)                Duty on embroidered fabric falling under sub-heading 5805.11 and 5805.19 have been prescribed at 10%..

(4)                It is clarified that for valuation of readymade garments, the provisions of section 4 would apply in case the MRP is not required to be declared and is not declared.

(5)        All the Trade Associations and chambers of Commerce are requested to give vide publicity to this Trade Notice amongst their members / constituents for their convenience.

                                                                                       (RAJENDRA PRAKASH)

      COMMISSIONER

Authority :  Ministry's letter dated 1.4.2003.