I am directed to invite your attention to the Notification No. 83/95-CE dated 24.4.95 which amends Notification Nos. 38/95-CE, 40/95-CE and 43/95-CE, all dated 16.3.1995 so as to remove the restriction on having facilities for bleaching, prating and dyeing for availing of the benefit of exemption under the above notifications. In its place, the earlier condition of not subjecting the fabrics to processes other than the specified processes within the same factory has been incorporated. In other words, the position existing prior to budget vide erstwhile Notification Nos. 344/ 86-CE, 253/82-CE and 297/79-CE has been restored.

2.    Consequent on removal of restriction regarding having facilities for bleaching, printing and dyeing for availing of the benefit of exemption, the chances of evasion of duty by manufacturers of fabrics have increased. I am, therefore directed to say that a close watch is required to be kept on such products with a view to detect cases of evasion of duty. Strict physical controls may also be exercised, wherever necessary, to prevent evasion. A monthly report may be sent in this regard for next 6 months through the Principal Collectors to the Board.