RULE 96ZQ. Procedure to be followed by an Independent processor of textile fabrics

(1) An independent processor of textile fabrics falling under heading Nos. 52.07,52.08,52.09,54.06,54.07, 55.11,55.12,55.13 or 55.14, or processed textile fabrics of cotton or man-made fibers, falling under heading Nos. or sub-heading Nos. 58.01, 58.02, 5806.10, 5806.40. 6001.12, 6001.22, 6001.92, 6002.20, 6002.30, 6002.43 or 6002.93, of the First Schedule to Central Excise Tariff Act, 1985 (5 of 1986), shall debit an amount of duty of Rs.2.0 lakhs per chamber per month, Rs.2.5lakhs per chamber per month, Rs.3.0 lakhs per chamber per month or Rs. 3.5 lakhs per chamber per month, as the case may be, on the annual capacity of production as determined under the Hot-air Stenter Independent Textile Processors Annual Capacity Determination Rules, 2000.

(2) The amount of duty payable under sub-rule (1) shall be debited by the independent processor in the account current maintained by him sub-rule (1) of rule 173G of the Central Excise Rules, 1944.

(3) Fifty per cent. of the amount of duty payable for a calendar month under sub-rule (1) shall be paid by the 15th of the month and the remaining amount shall be paid by the end of that month.

(4) The independent processor shall continue to maintain records, and file returns, pertaining to production, clearance, manufacturing, storage, delivery or disposal of goods, including the materials received for or consumed in the manufacture of excisable goods or other goods, the goods and materials in stock with him and the duty paid by him, as prescribed under the Central Excise Rules, 1944 and the notifications issued there under.

(5) If an independent processor fails to pay the amount 0£ duty or any part thereof by the date specified in sub-rule (3), he shall be liable to, -

(i) pay the outstanding amount of duty along with interest at the rate of twenty-four percent per annum calculated for the outstanding period on the outstanding amount; and

(ii) a penalty equal to an amount of duty outstanding from him at the end of such month or rupees five thousand, whichever is greater.

(6) If an independent processor, removes the processed textile fabrics referred to in sub-rule (1) without complying with any of the requirements contained in sub-rule (4), then, all such goods shall be liable to confiscation and the independent processor shall be liable to a penalty not exceeding rupees ten thousand.

(7) Where an independent processor does not produce or manufacture the processed textile fabrics specified in sub-rule (1) during any continuous period of not less than fifteen days and wishes to claim abatement under sub-section (3) of section 3A of the Act, the abatement shall be allowed by an order passed by the Joint Commissioner of Central Excise of such amount as may be specified in such order, subject to fulfillment of the following conditions, namely: -

(a) abatement shall be applicable only on the complete closure of the hot air stenter containing the chambers and not in case of closure of anyone or more chambers contained in such stenter, and the independent processor shall not clear any non-stentered fabrics during the period for which abatement is claimed, and any clearance by him of non-stentered fabrics during such period shall be liable to confiscation;

(b) the independent processor shall inform, in writing, about such closure to the Deputy Commissioner of Central Excise or the Assistant Com- missioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, at least three days prior to the date of such closure, giving the following details, namely: -

(i) the name of the manufacturer of the stenter;

(ii) the date of purchase of the stenter;

(iii) the number of chambers as determined under the Hot-air Stenter Independent Textile Processors Annual Capacity Determination Rules, 2000;

(iv) the serial number or identification no. of the stenter; (v) reason for closure of the stenter;

(vi) approximate number of days for which the stenter shall remain closed;

(vii) date and time from which the closure is intended; (c) the stenter or stenters shall be sealed in such manner as may be pre- scribed by the Commissioner of Central Excise;

(d) the independent processor, when he starts production again, shall in- form in writing about the date of starting of production to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, with a copy to the Superintendent of Central Excise, at least three days prior to the date of starting production, and get the seal opened in such manner as may be specified by the Commissioner of Central Excise before recommencing the production;

(e) the independent processor shall, while sending information under condition

(d) declare that his stenter remained closed for a continuous period starting from the hour and date to the hour and date, such hours and dates to be specified in the declaration;

(f) when the claim for abatement by the independent processor is for a period of less than one month, he shall be required to pay the duty , as applicable, for the entire period of the month and may subsequently seek such claim after payment of such duty;

(g) where the claim for abatement by the independent processor is for a period of one month or more, he shall not be required to pay the duty for that period in advance;

(h) If the claim for abatement by the independent processor has been disallowed by the Joint Commissioner of Central Excise, by a written order made in this regard, the independent processor shall pay the duty , and interest if any applicable, prior to getting the stenter or stenters sealed under condition (c) re-opened for resuming production :

Provided that the Joint Commissioner of Central Excise, where he is satisfied that the delay in giving information under condition (b) was caused due to unavoidable circumstances, may, for reasons to be recorded in writing, condone such delay.

Explanation. -For the purposes of these rules, an "independent processor" means a manufacturer who is engaged primarily in the processing of fabrics with the aid of power and who also has the facility in his factory (including plant and equipment) for carrying out heat-setting or drying, with the aid of power or steam in a hot-air stenter and who has no proprietary interest in any factory primarily and substantially engaged in the spinning of yarn or weaving or knitting of fabrics, on or after the 10th December, 1998.