Input duty credit permitted with restrictions to offset specified excise and equivalent additional duties on inputs.
Defines which goods are treated as inputs and final products for duty-credit purposes, excluding specified petroleum and certain steel products and textile headings. Specifies that duties listed as the First Schedule, certain Second Schedule special duties, additional excise duties under textile and goods-of-special-importance enactments, and equivalent customs additional duty constitute specified duty eligible for credit. Permits utilisation of such credit for payment of specified excise duties under rule 57F(12) subject to restrictions tying credit use to the source statute of the duty and imposing limits on credits for inputs from free trade zones and export oriented or technology park units. Excludes independent texturisers lacking specified facilities.

Abatement on retail sale price specified for enumerated excisable goods under section four A to determine assessable value.
The notification prescribes an abatement regime under section 4A for specified excisable goods listed by tariff chapter/heading, allowing a stated percentage of the retail sale price as abatement in computing assessable value. It defines "retail sale price" as the maximum packaged price to the ultimate consumer inclusive of taxes, freight, dealer commission and ancillary charges where that price is the sole consideration, and supersedes the earlier notification referenced.

Central Excise amendment revises sub-rule reference and redefines heat-setting or drying eligibility conditions for service providers.
Notification No.19/99-CE(NT) substitutes "sub-rule (2)" with "sub-rule (5)" in the opening paragraph of Notification No.29/96-CE(N.T.). It also replaces paragraph 7B so that the description of covered services now reads "heat-setting or drying, with the aid of power or steam in a hot-air stenter" and limits the proprietary interest exclusion to those who have no proprietary interest in any factory primarily and substantially engaged in the spinning of yarn or weaving or knitting of fabrics, applicable to services on or after the 10th December, 1998.

Independent processor liability tightened: higher interest, penalties and confiscation for non compliance with textile processing rules.
A proviso to rule 57F allows the Commissioner of Central Excise for the manufacturer's factory to permit finished goods to be cleared from a job worker's premises subject to revenue protective conditions. Rule 57Q revises tariff entries for certain fire extinguishers. Rule 57S extends specified periods from three months to one year. Rule 96ZQ replaces prior sub rules to impose high interest and minimum penalties for unpaid duty by independent processors, authorize confiscation and enhanced penalties for non compliant removals, prohibit clearance of non stentered fabrics during abatement, set advance duty payment rules for short abatement claims, require duty and interest payment before reopening sealed stenters if abatement is disallowed, and clarifies the definition of "independent processor."

Independent processor definition updated: requires hot-air stenter heat setting facility and excludes proprietary interest in spinning or weaving.
Rule 3 is amended to require reporting the total value and total quantity of processed fabrics cleared from the factory in the preceding financial year. Explanation III is replaced to define an "independent processor" as a manufacturer primarily engaged in powered processing of fabrics who has in-factory plant and equipment for heat-setting or drying by power or steam in a hot-air stenter and who has no proprietary interest in any factory primarily and substantially engaged in spinning, weaving or knitting of fabrics on or after the reference date.

Independent processor definition clarified to require power assisted fabric processing, hot air stenter capability and no proprietary interest in textile mills.
For the purposes of the notification, an "independent processor" means a manufacturer primarily engaged in power assisted processing of fabrics who has on site plant and equipment for heat setting or drying by power or steam in a hot air stenter and who has no proprietary interest in any factory primarily and substantially engaged in spinning, weaving or knitting of fabrics.

Rescission of notifications under the Central Excise Act withdraws specified miscellaneous exemptions previously granted.
The Central Government, satisfied that it is necessary in the public interest and acting under statutory authority, rescinds specified earlier notifications and thereby withdraws the miscellaneous exemptions those notifications had conferred; the instrument identifies two prior notifications by number and date as being annulled.

Research-derived goods exemption: excise duty waived for patented, Indian-owned designs manufactured by Indian companies with DSIR certification.
Exemption from the whole of specified excise duties is granted for goods designed and developed by an Indian-owned company, national laboratory, public funded research institution, or university and manufactured by a wholly Indian owned company, provided the goods are patented in any two countries among India, the United States, Japan and one country of the European Union, a certificate from the Department of Scientific and Industrial Research is produced, the procedure of the jurisdictional Commissioner of Central Excise is followed, and the exemption does not apply after three years from the DSIR certificate issuance.

Heat-setting or drying exemption narrowed; eligibility limited to operators without proprietary interest in primary spinning or weaving.
The amendment substitutes the phrase heat-setting with the aid of power or steam in a hot air stenter with heat-setting or drying with the aid of power or steam in a hot air stenter, and requires that the operator have no proprietary interest in any factory engaged primarily and substantially in the spinning of yarn or weaving (or knitting) of fabrics; this change is applied to serial entries 11, 12 and 24. Serial entry 19 is replaced to provide a nil duty exemption for certain handloom-woven fabrics processed by approved public or cooperative factories.

Independent processor definition clarified: powered fabric processing with heat-setting/drying and no proprietary interest in spinning or weaving.
The notification defines independent processor as a manufacturer primarily engaged in powered fabric processing who has in-factory plant for heat-setting or drying by power or steam in a hot-air stenter and who has no proprietary interest in any factory primarily and substantially engaged in spinning, weaving or knitting of fabrics.

Excise exemption for home consumption: tiered duty relief with nil and reduced rates subject to aggregate caps and brand and rural conditions.
Provides a tiered excise duty exemption for specified goods cleared for home consumption: initial aggregate clearances nil duty, next aggregate clearances at fifty percent of normal duty, and nil duty where such goods are used as inputs for further manufacture within the factory. The exemption applies only to goods listed in the Annexure, is subject to aggregation across factories and manufacturers, excludes certain clearances from aggregation, imposes brand-name limitations with specified exceptions, and operates for the prescribed period.

Excise duty exemption tiers allow concessional rates on initial aggregate clearances subject to written option and conditions.
Notification No. 09/1999 CE grants a time limited, tiered exemption reducing excise duty on specified goods for home consumption to concessional rates for initial aggregate clearances in a financial year, and nil duty for specified goods used as factory inputs. Eligibility requires a prior written option and prescribed notice to authorities; earlier clearances in the year count toward tranche entitlements. The exemption applies on an aggregate basis across factories and manufacturers, is subject to an overall prior year ceiling, excludes certain categories (including specified branded goods except in limited cases), and is governed by defined valuation and territorial rules.

Small scale industry exemption: staged duty relief on initial clearances, with credit restrictions and aggregation rules applying.
Notification creates a layered concession for specified excisable goods by small-scale manufacturers: full exemption on the first tranche of clearances in a financial year, a concessional ad valorem rate on the next tranche, and nil duty for clearances used as in factory inputs. Eligibility depends on aggregated clearances in the preceding year, excludes clearances already exempt or bearing another's brand (subject to exceptions), disallows certain input and capital-goods duty credits for qualifying first clearances, and requires prescribed notice if a manufacturer opts to pay the normal rate.

Central Excise exemptions amended: multiple notifications' validity extended and scope adjusted to add goods and brand-name rules.
Specified Central Excise exemption notifications are amended to extend validity generally to 31 March 1999 (with one extension to 1 April 2000), to substitute a proviso broadening clause (d) to include brand or trade names of National and State industrial corporations, to revise a table entry confirming coverage of all goods consumed in manufacture whether within the producing factory or elsewhere, and to insert goods under the goods classification corresponding to heading 09.02 into annexures.

Effective excise rate: notification caps excise liability for listed tariff items by prescribing specified ad valorem rates.
Notification exempts specified goods in Chapters 4-96 from excise duty to the extent the duty exceeds the effective rates specified in the annexed Table, issued under section 5A of the Central Excise Act, 1944. The Table assigns Nil, percentage, or specified non ad valorem rates for listed chapter, heading or sub heading entries. The Explanation states that the column (4) rate is ad valorem unless otherwise indicated; where a non ad valorem rate is specified that rate governs.

Excise duty exemptions establish specified effective ad valorem rates and conditional nil or reduced duties across tariff chapters.
Notification No. 5/99 reduces excise and special duty for specified goods in Chapters 1-96 by exempting the portion of duty in excess of the rates shown in the Table, with those rates treated as ad valorem unless otherwise specified. The Table enumerates tariff entries with effective rates (including Nil), cross references to Annexure conditions, and thematic Lists that identify eligible goods. Entitlement is frequently conditional on non availment of specified input credit, certified intended use, compliance with Chapter X procedures for off factory use, quantitative or value ceilings, and prescribed documentary or return requirements.

Rescission of service tax notifications removes specified earlier service tax notifications under statutory power, altering applicable service tax rules.
The government, being satisfied that rescission is necessary in the public interest and in exercise of powers under the Finance Act, 1994, hereby rescinds the service tax notifications specified in Column (2) of the annexed Table, withdrawing those listed notifications from the operative service tax framework.

Exemption for consulting engineer software services exempted from service tax, subsequently rescinded by later notification.
Exemption granted for services rendered by a consulting engineer in relation to computer software, relieving such services from the whole of the service tax leviable under the Finance Act, 1994; issued as Notification No. 4/99-Service Tax dated 28-2-1999 and later rescinded by a subsequent notification.

Exemption for rent-a-cab services removes service tax liability on cab rental under statutory power, subject to a specified expiry.
Exemption relieves taxable services provided by a rent-a-cab scheme operator in relation to the renting of cabs from service tax levied under the statutory service tax provision, effected through a government notification and subject to a specified expiry date.

Exemption for services paid in convertible foreign exchange removes service tax liability on specified taxable services.
Exempts the taxable services specified in sub-section (48) of section 65 of the Finance Act, 1994, provided to any person for which payment is made in convertible foreign exchange, from the whole of the service tax leviable under section 66 of the Act.