RULE 96E. Procedure for removal of cotton yam or jute twist yam, thread, ropes and twine from one factory to another without payment of duty

(1) Cotton yarn or jute twist, yam, thread, ropes and twine may be re moved without payment of duty from one factory to another for the purpose of processing or packing or for the purpose of manufacture of cotton fabrics or jute manufactures subject to the observance of the procedure hereinafter prescribed.

(2) For the purpose of this rule, " factory" means a factory working with the aid of power in which -

(a) cotton yam or jute twist, yam, thread, ropes and twine is spun and cotton fabrics or jute manufactures are woven; or

(b) only cotton fabrics or jute manufactures are woven and the duty thereon is paid on square metre, ad valorem or weight basis, as the case may be; or

(c) only cotton yarn or jute twist, yam, thread, ropes and twine is spun, or otherwise manufactured.

(3) When cotton yarn or jute twist, yarn, thread, ropes and twine is removed from one factory to another, the consignor shall, follow the procedure as required by rules 156Aand 156B, as modified by rule 173N.

(4) If cotton yam, after being processed, is removed without payment of duty to one or more factories for the purpose of further processing, or to the originating factory, such removal shall be subject to and in accordance with the provisions of sub-rule (3).