Notification No. 18 /2008 - Central Excise (N.T.) dated 27.03.2008
Regarding excise duty on Chaddar and Terry Towels

G.S.R. Whereas the Central Government is satisfied that a practice was generally prevalent regarding levy of duty of excise (including non-levy thereof) under section 3 of the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the said Act), on goods of the description given in column 1 of table below, when further used in manufacture of final products as specified in column 2, and that such goods were liable to duty of excise which was not being levied under section 3 of the said Act according to the said practice, during the period as specified below in column 3:

Description of Intermediate Goods Description of Final Products Period
1 2 3
Yarn subjected to doubling, winding, warping, bleaching, dyeing, pirn winding or similar other processes and classifiable under Chapter 52, 54 and 55. Chaddar 1st April 2003 to 8th July 2004
Terry Towels

2. Now, therefore, in exercise of the powers conferred by section 11C of the said Act, the Central Government hereby directs that the duty of excise leviable on such goods as described in column 1 of the table above, but for the said practice, shall not be required to be paid for the period detailed in column 3 above, in respect of such goods on which the said duty of excise was not being levied during the aforesaid period in accordance with the said practice.

Provided that the benefit under this notification shall be available only if the final products namely Chaddars or Terry Towels have been cleared availing the exemption under notification number 8/2003-CE dated 1st March, 2003 or 36/2003-CE dated 30th April, 2003 as amended by 47/2003-CE dated 17thMay 2003, as the case may be.

Provided further that the benefit under this notification shall not be admissible unless the unit claiming benefit in terms of this notification reverse the input credit, if any, taken in respect of inputs used in manufacture of such goods.

[F. No. 63/01/04 CX.1]

(Ashima Bansal)
Under Secretary to the Government of India - India's Premier portal on Excise matters