CIR NO.714/30/2003-CX, DT. 14/05/2003

Certain clarifications regarding excise duty structure on textile and textile articles

In continuation of Board’s Circular No. 713/29/2003-CX dated 7.5.2003 issued from file of even number clarifying certain doubts relating to the excise duty structure on textiles and textile articles announced during and after Budget 2003 announcements, the undersigned is directed to issue further clarifications on the subject as follows :

Issue No. 1:

In the above-referred Circular it was clarified that in case a number of manufacturers of fabrics and readymade garments and clothing accessories operate from a common premises, though carrying out individual manufacture and clearances and having distinct legal entities, then for the purposes of notification Nos. 34 and 35/2003-CE, both dated 30th April, 2003, the machines/looms belonging to a specific manufacturer should be treated as a `factory’. In this regard, it is further clarified that such powerloom units/garment making units could be registered individually. Therefore, the erstwhile directions, that an assessee has to have distinct and separate premises shall not apply in case of such powerloom or garments/accessories manufacturing units.

Issue No. 2:

Under Central Excise Rules, 2002, an assessee is required to pay duty for the clearances during a month by the 5th of the subsequent month. Similarly, he is required to file return for the previous month by the 10th of the subsequent month. As the budget proposals for 2003-04 pertaining to textiles have brought in a large number of new assesses who are not fully conversant with the excise procedures, many of such assessees did not pay the duty on their clearances during April, 2003 and also did not file the monthly return in time. Considering the circumstances, specific orders have been obtained from the Finance Minister that as a one time measure, the last date for duty payment and that for the filing of return for the clearances made during April, 2003, is extended to 5th June, 2003 and 10th June, 2003 respectively. In view of this, the field formations are directed not to take any action for the delay.

Issue No. 3:

Vide Notification No. 47/2003-CE (NT) dated 14.5.2003, one time credit (under rule 9A of the Cenvat Credit Rules, 2002) on the stock of inputs, contained in the finished product, lying as on 1.4.2003 has been extended to certain yarns and knitted or crocheted articles of apparel or clothing accessories. It is possible that some of the manufacturers or traders who have filed their declaration of stock prior to 14.5.2003 have not declared the stock of the above mentioned items, for the reasons that they were not covered under rule 9A or notifications issued thereunder. Such manufacturers can file additional declaration declaring the stock of the above mentioned items and claim one time credit thereon provided such declaration is made within the date prescribed under rule 9A i.e. 26.5.2003.

2. This issues with the approval of Chairman, CBEC.

Sd/-
(Gautam Bhattacharya)
Director (TRU)

F. No. B3/5/2003-TRU

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