Amendments in Effective Excise Duty on Textiles – II

[Ref: Central Excise Notification No. 30 dated 24th March 2011]

The levy of 1% excise duty covers all kind of carpets. The trade has represented that most of the carpets are woven by individual weavers and exported. It has been informed that in most of the cases, the domestic sales of the carpets are well within the exempted threshold of Rs.1.5 Crore. It is to clarify that in such cases the units need not register and can continue to export following the simplified export procedure for exempted units as prescribed under part III of Chapter 7 of CBEC‟s Excise Manual of Supplementary Instructions 2005.

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise(Goods of Special importance) Act, 1957(58 of 1957) the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 30/2004-Central Excise, dated the 9th July, 2004 published in the Gazette of India, Extraordinary, vide G.S.R. 421 (E), dated the 9th July, 2004, namely: -

In the said notification,-

(i) in the TABLE, for S.No.12 and the entries relating thereto, the following S. No. and entries shall be substituted, namely:-

(1)	(2)	(3)
“12.	57	All goods other than,- (i) Hand-made carpets, whether or not any machines have been used to achieve better finish during pre-weaving or post weaving operations; (ii) Carpets and other textile floor coverings, knotted, woven, tufted or flocked of coconut fibres (coir) or jute, whether or not made up, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of machines; and (iii) Other carpets and other textile floor coverings of coconut fibres(coir) or jute, whether or not made up. Explanation.- For the purpose of chapter 57 the term “machines’ shall not include manually operated implements, used independently by hand, such as hooking guns, tufting guns and knitted guns.

(ii) in the TABLE, for S.No.14 and the entries relating thereto, the following S. No. and entries shall be substituted, namely:-

(1)	(2)	(3)
“14.	59 (except 590610 00)	All goods.”

(iii) in the TABLE, for S.No.16 and the entries relating thereto, the following S. No. and entries shall be substituted, namely:-

(1)	(2)	(3)
“16.	61,62 and 63 (except 6305, 6309 00 00 and 6310,)	All goods other than those bearing a brand name or sold under a brand name.”

[F. No. B-1/3/2011 –TRU]