TRADE NOTICE No. 108/2002

     Dated:

   22.10.2002

                               Sub:    Central Excise - Communication of  Notification no.   49/2002 CE dated 16.9.02- reg.

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                           Notification no. 214/86 CE dated 25.3.86 relates to exemption to goods manufactured in a factory as a job work. An amendment notification no49/02 dated 16.9.02 issued by the Ministry of Finance and Company affairs is communicated herewith for the benefit of all. By the amendment , job work without payment of duty can be undertaken even where the job worked  goods are exempted final products or further used by the Principal in  the manufacture of both exempted and dutiable final products. The present amendment enables :-

I)                  job work without payment of duty provided the Principal manufacturer discharges his obligation of payment of 8% of the price of exempted final product, when the job worked goods are used in the further manufacture of exempted goods at the factory of Principal .

II)               job work without payment of duty provided the Principal manufacturer discharges his obligation of payment of 8% of the price of exempted final product , where the job worked goods themselves exempted final product and cleared as such by the Principal on receipt from Job worker.  The exemption is subject to the condition that the supplier of raw material or semi finished goods ( principal) should given an undertaking to the Department that he would discharge the obligation under Rule  6 of  Cenvat credit Rule 2002.

    The contents of the Trade notice may be brought to the knowledge of all concerned.      

 (Issued from file C.No. IV/16/5/2002 CX. II Vol. II)

 

                                                                                        Sd/-

                                                                               (KAJAL SINGH)

                                                                      JOINT COMMISSIONER

                                                                                 (TECHNICAL)

To

As per Mailing list (Both Department and Trade)

Copy of Notification No. 49  / 2002 - Central Excise   dated 16th September, 2002

                     In exercise of the powers conferred by sub-section (1) read with sub-section (4) of  section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 214/86-Central Excise, dated the 25th  March, 1986, namely:-

In the said notification,-

(a)     in the opening paragraph, -

(i)    in clause (a), after sub-clause (iii), following sub-clause shall be inserted, namely :-

“(iv) by a manufacturer of dutiable and exempted final products, after discharging his obligation in respect of said goods under rule 6 of the CENVAT Credit Rules, 2002; or”;

(ii)   in clause (b), after sub-clause (ii), following sub-clause shall be inserted, namely :-

“(iia) by a manufacturer of dutiable and exempted final products, after discharging his obligation in respect of said goods under rule 6 of the CENVAT Credit Rules, 2002; or”;

(b)     in paragraph (2), in clause (i), in sub-clause (b), after the portion beginning with the brackets and figures “(ii)” and ending with the words and figures “dated the 28th August, 1995; or”, the following shall be inserted, namely:-

“(iii) by a manufacturer of dutiable and exempted final products, after discharging his obligation in respect of said goods under rule 6 of the CENVAT Credit Rules, 2002; or”.

Vivek Prasad

Under Secretary to the Government of India

 F. No. 332 / 19 / 2002 -TRU

 

Note:  The principal notification No. 214/86-Central Excise, dated 25th March, 1986 was published in the Gazette of India, Extraordinary vide G.S.R. 547 (E), dated the 25th March, 1986 and was last amended by notification No. 35/2000-Central Excise, dated the 5th April, 2000 [G.S.R. 311 (E), dated the 5th April, 2000].