|
Trade
Notice No. 49
/2001 |
Dated: |
26
-06-2001 |
Sub: C.Ex - Communication
of Notification No. 30/2001-C.Ex (N.T),31/2001 C.Ex
(N.T) and 34/2001 C.Ex (N.T) all dated
21- 06-2001 Reg.
-x-x-x-x-
Government of India has introduced
Central Excise(No.2) Rules,
2001, Cenvat Credit Rules, 2001 and Central Excise (Removal of Goods at
Concessional Rate of Duty for Manufacture of Excise Goods)
Rules, 2001 which comes
into force from 01-07-2001 . The
relevant notification No.30/2001C.Ex(N.T) , 31/2001C.Ex(N.T) and
34/2001C.Ex(N.T) all dated 21-06-2001
issued by the Government of India, Ministry of Finance, Department of
Revenue New Delhi are
communicated herewith for
information.
The contents of the Trade Notice may be
brought to the notice of all concerned.
(Issued from file C.No.IV/16/2/2001 CX POL)
Sd/…….
(JANAKI
ARUNKUMAR)
ADDL. COMMISSIONER (TECH)
As
per mailing list
(both
department and trade)
NOTIFICATION
(2) They extend to the whole of India.
(3) They shall come into force on the 1st day of July, 2001.
2. Definitions.- In these rules, unless the context otherwise requires, –
(a) “Act” means the Central Excise Act, 1944 ( 1 of 1944);
(b) “assessment” includes self-assessment of duty made by the assessee and provisional assessment under rule 7;
(c) “assessee” means any person who is liable for payment of duty assessed or a producer or manufacturer of excisable goods or a registered person of a private warehouse in which excisable goods are stored and includes an authorized agent of such person;
(d) “Board” means the Central Board of Excise and Customs constituted under the Central Board of Revenue Act, 1963 (54 of 1963);
(e) “duty” means the duty payable under section 3 of the Act;
(f) “notification” means the notification published in the Official Gazette;
(g) “proper form” means the appropriate form as may be notified by the Board;
(h) “warehouse” means any place or premises registered under rule 9; and
(i) words and expressions used herein but not defined and defined in the Act shall have the meanings respectively assigned to them in the Act.
3. Appointment and jurisdiction of Central Excise Officers.- (1) The Board may, by notification, appoint such person as it thinks fit to be Central Excise Officer or to exercise all or any of the powers conferred by these rules, on such officer.
(2) The Board may, by notification, specify the jurisdiction of a Chief Commissioner of Central Excise, Commissioner of Central Excise or Commissioner of Central Excise (Appeals) for the purposes of the Act and the rules made thereunder.
(3)
Any Central Excise Officer may exercise the powers and discharge the
duties conferred or imposed under the Act or these rules on any other Central
Excise Officer who is subordinate to him.
4. Duty payable on removal.- (1) Every person who produces or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty leviable on such goods in the manner provided in rule 8 or under any other law, and no excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided:
Provided that the goods falling under Chapter 62 of the First Schedule to Central Excise Tariff Act, 1985 (5 of 1986) produced or manufactured by a job worker may be removed without payment of duty leviable thereon and the duty of excise leviable on such goods shall be paid by the person referred to in sub-rule (3), as if such goods have been produced or manufactured by him, on the date of removal of such goods from his premises registered under rule 9:
Explanation.- It is hereby clarified that where such person has authorised the job worker to pay the duty leviable on such goods under sub-rule (3), such duty shall be paid by the job worker on the date of removal of such goods from his registered premises.
(2)
Notwithstanding anything contained in sub-rule (1), where molasses are
produced in a khandsari sugar factory, the person who procures such molasses,
whether directly from such factory or otherwise, for use in the manufacture of
any commodity, whether or not excisable, shall pay the duty leviable on such
molasses, in the same manner as if such molasses have been produced by the
procurer.
(3)
Notwithstanding anything
contained in sub-rule (1), every person who gets the goods, falling under
Chapter 62 of the First Schedule
to he Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured on
his account on job work, shall pay the duty leviable
on such goods, at such time and in such manner as may be specified
under these rules, whether the payment of such duty be secured by bond or
otherwise, as if such goods have been manufactured by such person:
Provided that such person
may authorise the job worker to pay the duty leviable on such goods on his
behalf and the job worker so authorised undertakes to discharge all
liabilities and comply with all the provisions of these rules.
Explanation I.-
For the purposes of this sub-rule, the expression
“job worker” shall be deemed to mean the person who undertakes the process
or processes that brings into
existence the finished goods, complete in all respects,
falling under Chapter 62 of the said First Schedule, in his factory.
For the removal of doubt, it is further clarified that the job-worker may also
get part of the processing required for the manufacture
of the said goods done by another person but should bring back the same
for the completion of the
manufacturing process in his factory.
Explanation
II.- For the purposes of this rule,
excisable goods manufactured in a factory and
utilised, as such or after subjecting to any process,
for the manufacture of any other commodity,
in such factory shall be deemed to have been removed from such factory
immediately before such utilisation.
5.
Date for determination of duty and tariff valuation.-
(1) The rate of duty or
tariff value applicable to any excisable goods , other than khandsari
molasses, shall be the rate or
value in force on the date when such goods are removed from a factory or a
warehouse, as the case may be.
(2)
The rate of duty in the case of khandsari molasses, shall be the rate
in force on the date of receipt of such molasses in the factory of the
procurer of such molasses.
Explanation.-
If any excisable goods are used within the factory, ‘the date of
removal of such goods’ shall mean the date on which the goods are issued for
such use.
(3) The rate of duty in the case of goods falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured on job work, shall be the rate in force on the date of removal of such goods by the person referred to in sub-rule (3) of rule 4 from his premises registered under rule 9.
6.
Assessment of duty.- The assessee shall himself assess the duty payable
on any excisable goods:
Provided that in case of
cigarettes, the Superintendent or Inspector of Central Excise shall assess the
duty payable before removal by the assessee.
7. Provisional assessment.- (1) Where the assessee is unable to determine the value of excisable goods or determine the rate of duty applicable thereto, he may request the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, in writing giving reasons for payment of duty on provisional basis and the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, may order allowing payment of duty on provisional basis at such rate or on such value as may be specified by him.
(2) The payment of duty on provisional basis may be allowed, if the assessee executes a bond in proper form with such surety or security in such amount as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, deem fit, binding the assessee for payment of difference between the amount of duty as may be finally assessed and the amount of duty provisionally assessed.
(3) The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall pass order for final assessment, as soon as may be, after the relevant information, as may be required for finalizing the assessment, is available, but within a period not exceeding six months from the date of the communication of the order issued under sub-rule (1):
Provided that the
period specified in this sub-rule may, on sufficient cause being shown and the
reasons to be recorded in writing, be extended by the Commissioner of Central
Excise for a further period not exceeding six months and by the Chief
Commissioner of Central Excise for such further
period as he may deem fit.
(4) The assessee shall be liable to pay interest on any amount payable to Central Government, consequent to order for final assessment under sub-rule (3), at the rate of twenty four percent per annum from the first day of the month succeeding the month for which such amount is determined, till the date of payment thereof.
(5) Where the assessee is entitled to a refund consequent to order for final assessment under sub-rule (3), subject to sub-rule (6), there shall be paid an interest on such refund at the rate of fifteen percent per annum from the first day of the month succeeding the month for which such refund is determined, till the date of refund.
(6) Any amount of refund determined under sub-rule (3) shall be credited to the Consumer Welfare Fund:
Provided the amount of refund, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to-
(a) the duty of excise paid by the manufacturer, if he had not passed on the incidence of such duty to any other person, or
(b) the duty of excise borne by the buyer, if he had not passed on the incidence of such duty to any other person.
8.
Manner of payment.-
(1) The duty on the goods
removed from the factory or the warehouse during the first fortnight of the
month shall be paid by the 20th of that month and the duty on the
goods removed from the factory or the warehouse during the second fortnight of
the month shall be paid by the 5th of the following
month:
Provided that in the case
of goods removed during the second fortnight of
the month of March, the duty shall be paid by 31st
day of March:
Provided further that
where an assessee is availing of
the exemption under a notification based on the value of clearances in a
financial year, the duty on goods cleared during a calendar month shall be
paid by the 15th day
of the following month.
Explanation.-
For removal of doubts, it is hereby clarified that the duty liability shall be
deemed to have been discharged only if the amount payable is credited to the
account of the Central Government by the specified date.
(2)
The duty of excise shall be deemed to have been paid for the purpose of
these rules on the excisable goods removed in the manner provided under
sub-rule (1) and the credit of such duty allowed, as provided by or under any
rule.
(3)
If the assessee fails to pay the amount of duty by due date, he shall
be liable to pay the outstanding amount alongwith interest at the rate
of twenty four per cent. per annum on the outstanding amount, for the
period starting with the first day after due date till the date of actual
payment of the outstanding amount.
(4)
If the assessee defaults,-
(i)
in payment of any one instalment
and the same is discharged beyond a period of thirty days from the date on
which the instalment was due in a financial year, or
(ii)
in payment of instalment by the due date for the third time in a
financial year, whether in succession or otherwise,
then, the assessee shall
forefeit the facility to pay the dues in instalments under this rule for a
period of two months, starting from the date of communication of the order
passed by the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, in this regard or till
such date on which all dues are paid, whichever is later, and during this
period the assessee shall be required to pay excise duty for each consignment
by debit to the account current and in the event of any failure, it shall be
deemed that such goods have been cleared without payment of duty and the
consequences and penalties as provided in these rules shall follow.
9.
Registration.-
(1)
Every person, who produces, manufactures, carries on trade, holds
private store-room or warehouse or otherwise uses excisable goods, shall get
registered:
Provided
that a registration obtained under rule 174 of the Central Excise Rules, 1944
shall be deemed to be as valid as
the registration made under this sub-rule for the purpose of these rules.
(2)
The Board, may, by notification, and subject to such conditions or
limitations as may be specified in such notification, specify person or class
of persons who may not require such registration.
(3)
The registration under sub-rule (1) shall be subject to such
conditions, safeguards and procedure as may be notified by the Board.
10.
Daily stock account.-
(1)
Every assessee shall maintain proper records, on a daily basis, in a
legible manner indicating the particulars regarding description of the goods
produced or manufactured, opening balance, quantity produced or manufactured,
inventory of goods, quantity removed, assessable value, the amount of duty
payable and particulars regarding amount of duty actually paid.
(2)
The first page and the last page of each such account book shall be
duly authenticated by the producer or the manufacturer or his authorised
agent.
(3)
All such records shall be preserved for a period of five years
immediately after the financial year to which such records pertain.
11.
Goods to be removed on invoice.-
(1)
No excisable goods shall be removed from a factory or a warehouse
except under an invoice signed by the owner of the factory or his authorized
agent and in the case of cigarettes, each such invoice shall also be
countersigned by the Inspector of Central Excise or the Superintendent of
Central Excise before the cigarettes are removed from the factory.
(2)
The invoice shall be serially numbered and shall contain the
registration number, description, classification, time and date of removal,
rate of duty, quantity and value,
of goods and the duty payable thereon.
(3)
The invoice shall be prepared in triplicate in the following manner,
namely:-
(i)
the original copy being marked as ORIGINAL FOR BUYER;
(ii)
the duplicate copy being marked as DUPLICATE FOR TRANSPORTER;
(iii)
the triplicate copy being marked as TRIPLICATE FOR ASSESSEE.
(4)
Only one copy of invoice book shall be in use at a time, unless
otherwise allowed by the Assistant Commissioner of Central Excise, or the
Deputy Commissioner of Central Excise, as the case may be,
in the special facts and circumstances of each case.
(5)
The owner or working partner or Managing Director or Company Secretary
shall authenticate each foil of the invoice book, before being brought into
use.
(6)
Before making use of the invoice book, the serial numbers of the same
shall be intimated to the Superintendent of Central Excise having
jurisdiction.
12.
Filing of return.-
Every assessee shall submit to the Superintendent of Central Excise a
monthly return in proper form, of production and removal of goods and other
relevant particulars, within ten days after the close of the month to which
the return relates:
Provided that where an
assessee is availing of the
exemption under a notification based on the value of clearances in a financial
year, he shall file a quarterly return in proper form, of production and
removal of goods and other relevant particulars, within twenty days after the
close of the quarter to which the return relates.
13.
Duty on matches.-
The duty on matches shall be paid by affixing to each box or booklet a
Government Central Excise Stamp of a value appropriate to the rate of duty,
and where such boxes or booklets are issued in packages, each package shall be
reckoned by the manufacturer as his minimum unit of distribution
and shall bear the manufacturer’s trade label and a mark clearly
showing the class of matches contained in the package.
14.
Procedure for procurement of central excise stamps and maintenance of
records for production and removal of matches.-
The Board may, by notification, specify the procedure for procurement,
accounting and disposal of Central Excise Stamps and matters pertaining to
production, storage, control, removal and payment of duty on matches.
15.
Special procedure for payment of duty.-
(1)
The Central Government may, by notification, specify the goods in
respect of which an assessee shall have the option to pay the duty of excise
on the basis of such factors as may be relevant
to production of such goods and at
such rate as may be notified for
this purpose.
(2)
The Central Government may also specify by notification the manner of
making an application for availing of the special procedure for payment of
duty, the abatement, if any, that may be allowed on account of closure of a
factory during any period, and any other matter incidental thereto.
16.
Credit of duty on goods returned to the factory.-
(1)
Where any goods on which duty has been paid at the time of removal
thereof are subsequently returned to the factory for being re-made, refined,
re-conditioned or for any other reason, the assessee shall state the
particulars of such return in his records and shall be entitled to have CENVAT
credit of the duty paid as if such goods are received as inputs under the
CENVAT Credit Rules, 2001 and utilise this credit according to the said rules.
(2)
If the process to which the goods are subjected before returning does
not amount to manufacture, the manufacturer shall pay an amount equal to the
CENVAT credit taken under sub-rule (1) and in any other case the manufacturer
shall pay duty on goods returned
under sub-rule (1) at the rate applicable on the date of removal and on the
value determined under section 4 or section 4A of the Act, as the case may be.
(3)
If there is any difficulty in following the provisions of sub-rule (1)
and sub-rule (2), the assessee may receive the goods for being re-made,
refined, re-conditioned or for any other reason and may remove the goods
subsequently subject to such conditions as may be specified by the
Commissioner.
17.
Removal of goods by a unit in the Free Trade Zone or by a Hundred per
cent. Export-Oriented undertaking or
by a unit in the Special Economic Zone for Domestic Tariff Area.-
(1) Where any goods are
removed from a unit in a Free
Trade Zone or a hundred per cent.
export-oriented unit or a unit in the Special Economic Zone, to domestic
tariff area, such removal shall be made under an invoice by following the
procedure specified in rule 11, and on payment
of appropriate duty before removal of goods by debiting the account current
required to be maintained for this purpose.
(2) The unit shall
maintain in proper form appropriate account relating to production,
description of goods, quantity removed, duty paid and each removal shall be
made on an invoice.
(3)
The unit shall submit a monthly return to the Superintendent of Central
Excise, within ten days from the close of the month to which the return
relates, in respect of the goods removed to domestic tariff area in such form
as may be notified by the Board for this purpose.
18.
Rebate of duty.- Where any goods are exported, the Central Government
may, by notification, grant rebate of duty paid on such excisable goods or
duty paid on materials used in the manufacture or processing of such goods
and the rebate shall be subject to such conditions or limitations, if any, and
fulfillment of such procedure, as may be specified in the notification.
Explanation.-
“Export” includes goods shipped as provision or stores for
use on board a ship proceeding to a foreign port or supplied to a
foreign going aircraft.
19.
Export without
payment of duty .-
(1)
Any excisable goods may be exported
without payment of duty from a factory of the producer or the
manufacturer or the warehouse or any other premises, as may be approved by the
Commissioner.
(2)
Any material may be
removed without payment of duty from a factory of the producer or the
manufacturer or the warehouse or any other premises, for use in the
manufacture or processing of goods
which are exported, as may be approved by the Commissioner.
(3)
The export under sub-rule (1) or sub-rule (2) shall be subject to such
conditions, safeguards and procedure as may be notified by the Board.
20.
Warehousing provisions.-
(1)
The Central Government may by notification, extend the facility of
removal of any excisable goods from the factory of production to a warehouse,
or from one warehouse to another
warehouse without payment of duty.
(2)
The facility under sub-rule (1) shall be available subject to such
conditions (including penalty and interest), limitations (including limitation
with respect to the period for which the goods may remain in the warehouse)
and safeguards and procedure (including in the matters relating to dispatch,
movement, receipt, accountal and disposal of such goods) as may be specified
by the Board in this behalf.
(3)
The responsibility for payment of duty on the goods that are removed
from the factory of production to a warehouse or from one warehouse to another
warehouse shall be upon the consignee.
(4)
If the goods dispatched for warehousing or re-warehousing are not
received in the warehouse, the responsibility for payment of duty shall be
upon the consignor.
21.
Remission of duty.- Where
it is shown to the satisfaction of the Commissioner that goods have been lost
or destroyed by natural causes or by unavoidable accident or are claimed by
the manufacturer as unfit for
consumption or for marketing, at any time before removal, he may remit the
duty payable on such goods, subject
to such conditions as may be imposed by him by order in writing:
Provided that where such
duty does not exceed one thousand rupees, the provisions of this rule shall
have effect as if for the expression “Commissioner” , the expression “
Superintendent of Central Excise” has been substituted:
Provided further that
where such duty exceeds one thousand rupees but does not exceed two thousand
five hundred rupees, the provisions of this rule shall have effect as if for
the expression “Commissioner” , the expression “ Assistant Commissioner
of Central Excise or the Deputy Commissioner of Central Excise, as the case
may be,” has been substituted:
Provided further that
where such duty exceeds two thousand five hundred rupees but does not exceed
five thousand rupees, the provisions of this rule shall have effect as if for
the expression “Commissioner”, the expression “ Joint Commissioner of
Central Excise or Additional Commissioner of Central Excise,
as the case may be, ” has been substituted.
22.
Access to a registered
premises.- (1) An officer
empowered by the Commissioner in this behalf shall have access to any premises
registered under these rules for the purpose of carrying out any scrutiny,
verification and checks as may be necessary to safeguard the interest of
revenue.
(2) Every assessee shall furnish to the officer empowered under sub-rule (1), a list in duplicate, of all the records prepared or maintained by the assessee for accounting of transactions in regard to receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods.
(3)
Every assessee shall, on demand make available to the officer empowered
under sub-rule (1) or the audit party deputed by the Commissioner or the
Comptroller and Auditor General of India,-
(i) the records maintained or prepared by him in terms of sub-rule (2);
(ii) the cost audit reports, if any, under section 233B of the Companies Act, 1956 ( 1 of 1956); and
(iii) the Income-tax audit report, if any, under section 44AB of Income-tax Act, 1961 ( 43 of 1961),
for the scrutiny of the officer or audit party, as the case may be.
23.
Power to stop and search .-
Any Central Excise Officer, may search any conveyance carrying
excisable goods in respect of which he has reason to believe
that the goods are being carried with the intention of evading duty.
24.
Power to detain goods or seize the
goods[J1].-
If a Central Excise Officer, has
reason to believe[J2]
that any goods, which are liable
to excise duty but no duty has been paid[J3]
thereon or the said goods were removed with the intention of evading the [J4]duty
payable thereon, the Central Excise Officer may detain or seize such goods.
25.
Confiscation and penalty.-
(1) Subject to the provisions of section 11 AC of the Act, if any
producer, manufacturer, registered person of a warehouse or a registered
dealer, —
(a) removes any excisable goods in contravention of any of the
provisions of these rules or the notifications issued under these rules; or
(b) does not account for any excisable goods produced or manufactured
or stored by him; or
(c) engages in the manufacture, production or storage of any excisable
goods without having applied for the registration
certificate required under section 6 of the Act; or
(d) contravenes any of the provisions of these rules or the
notifications issued under these rules with intent to evade payment of duty,-
then,
all such goods shall be liable to confiscation and the producer or
manufacturer or registered person of the warehouse or a registered dealer , as
the case may be, shall be liable to a penalty not exceeding the duty on the
excisable goods in respect of which any contravention of the nature referred
to in clause (a) or clause (b) or clause (c) or clause (d) has been committed,
or rupees ten thousand, whichever is greater.
(2)
An order under sub-rule (1) shall be issued by the Central Excise
Officer, following the principles of natural justice.
26.
Penalty
for certain offences.-
Any person who acquires possession of, or is in any way concerned in
transporting, removing, depositing, keeping, concealing, selling or
purchasing, or in any other manner deals with, any excisable goods which he
knows or has reason to believe are liable to confiscation under the Act or
these rules, shall be liable to a penalty not exceeding the duty on such goods
or rupees ten thousand, whichever is greater.
27.
General penalty.-
A breach of these rules shall, where no other penalty is provided
herein or in the Act, be punishable with a penalty which may extend to five
thousand rupees and with confiscation of the goods in respect of which the
offence is committed.
28.
On confiscation, property to vest in the Central Government.-
(1) When any goods are confiscated under these rules, such thing shall
thereupon vest in the Central
Government .
(2)
The Central Excise Officer
adjudging confiscation shall take and hold possession of the things
confiscated, and every Officer of Police, on the requisition of such Central
Excise Officer, shall assist him in taking and holding such possession.
29.
Disposal of goods confiscated.-
Goods of which confiscation has been adjudged and in respect of which
the option of paying a fine in lieu of confiscation has not been exercised,
shall be sold, destroyed or otherwise disposed of in such manner as the
Commissioner may direct.
30.
Storage charges in respect of goods confiscated and redeemed.-
If the owner of the goods, the
confiscation of which has been adjudged, exercises his option to pay fine in
lieu of confiscation, he may be required to pay such storage charges as may be
determined by the adjudicating officer.
31.
Power to issue supplementary instructions.-
(1) The Board or the Chief
Commissioner or the Commissioner, may issue written instructions providing for
any incidental or supplemental matters, consistent with the provisions of the
Act and these rules.
32. Transitional provisions.- Any circulars, instructions, standing orders, trade notices or other orders issued under the Central Excise Rules, 1944 by the Board, the Chief Commissioner or the Commissioner of Central Excise, and in force as on 30th June, 2001, shall, to the extent they are relevant and consistent with these rules, be deemed to be valid and issued under the corresponding provisions of these rules.
33. Rescinding of rules.- The Central Excise Rules, 2001 is hereby rescinded.
F. No. 354/66/2001-TRU
(T.R. Rustagi)
Joint
Secretary to the Government of India
NOTIFICATION
No.31
/2001-CENTRAL EXCISE (N. T.)
G.S.R.
445 (E).- In exercise of
the powers conferred by section 37 of the Central Excise Act, 1944 (1 of
1944), the Central Government
hereby makes the following rules, namely:-
1. Short title, extent and commencement.- (1) These rules may be called the CENVAT Credit Rules, 2001.
(2) They extend to the whole of India.
(3) They shall come into force on and from the 1st day of July, 2001.
2. Definitions.- In these rules, unless the context otherwise requires,-
(a) “Act” means the Central Excise Act, 1944 (1 of 1944);
(b) “capital goods” means,-
(i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Tariff Act;
(ii) components, spares and accessories of the goods specified at (i) above;
(iii) moulds and dies;
(iv) refractories and refractory materials;
(v) tubes and pipes and fittings thereof;
(vi) pollution control equipment; and
(vii) storage tank,
used in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office;
(c) “exempted goods” means goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to “Nil” rate of duty;
(d) “final products” means excisable goods manufactured or produced from inputs, except matches;
(e) “first stage dealer” means a dealer who purchases the goods directly from,-
(i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise (No. 2) Rules, 2001 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice; or
(ii) an importer or from the depot of an importer or from the premises of the consignment agent of the importer, under cover of an invoice;
(f) “input” means all goods, except high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not, and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production.
Explanation 1.- The high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever.
Explanation 2.- Inputs include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer;
(g) “manufacturer” or “producer” in respect of goods falling under Chapter 62 of the said First Schedule shall include a person who is liable to pay the duty of excise leviable on such goods under sub-rule (3) of rule 4 of the Central Excise (No. 2) Rules, 2001;
(h) “Tariff Act” means the Central Excise Tariff Act, 1985 (5 of 1986);
(i) “second stage dealer” means a dealer who purchases the goods from a first stage dealer;
(j) words and expressions used in these rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act.
3. CENVAT credit.- (1) A manufacturer or producer of final products shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of -
(i) the duty of excise specified in the First Schedule to the Tariff Act, leviable under the Act;
(ii) the duty of excise specified in the Second Schedule to the Tariff Act, leviable under the Act;
(iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978);
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957);
(v) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001); and
(vi) the additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975), equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv) and (v) above,
paid on any inputs or capital goods received in the factory on or after the first day of July, 2001, including the said duties paid on any inputs used in the manufacture of intermediate products, by a job-worker availing the benefit of exemption specified 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, published in the Gazette of India vide number GSR 547 (E), dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final products, on or after the first day of July, 2001.
Explanation.- For the removal of doubts it is clarified that the manufacturer of the final products shall be allowed CENVAT credit of additional duty leviable under section 3 of the Customs Tariff Act, 1975 ( 51 of 1975) on goods falling under heading No. 98.01 of the First Schedule to the said Customs Tariff Act.
(2) Notwithstanding anything contained in sub-rule (1), the manufacturer or producer of final products shall be allowed to take CENVAT credit of the duty paid on inputs lying in stock or in process or inputs contained in the final products lying in stock on the date on which any goods cease to be exempted goods or any goods become excisable.
(3) The CENVAT credit may be utilized for payment of any duty of excise on any final products or for payment of duty on inputs or capital goods themselves if such inputs are removed as such or after being partially processed, or such capital goods are removed as such:
Provided that while paying duty, the CENVAT credit shall be utilised only to the extent such credit is available on the fifteenth day of a month for payment of duty relating to the first fortnight of the month, and the last day of a month for payment of duty relating to the second fortnight of the month or in case of a manufacturer availing exemption by notification based on value of clearances in a financial year, for payment of duty relating to the entire month.
(4) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay an amount equal to the duty of excise which is leviable on such goods at the rate applicable to such goods on the date of such removal and on the value determined for such goods under section 4 or section 4A of the Act, as the case may be, and such removal shall be made under the cover of an invoice referred to in rule 7.
(5) The amount paid under sub-rule (4) shall be eligible as CENVAT credit as if it was a duty paid by the person who removed such goods under sub-rule (4).
(6) Notwithstanding anything contained in sub-rule (1),-
(a) CENVAT credit in respect of inputs or capital goods produced or manufactured ,-
(i) in a free trade zone or a special economic zone and used in the manufacture of the final products in any other place in India; or
(ii) by a hundred per cent. export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or Software Technology Park and used in the manufacture of the final products in any place in India,
shall be restricted to the extent which is equal to the additional duty leviable on like goods under section 3 of the Customs Tariff Act, 1975 (51 of 1975) paid on such inputs or capital goods;
(b) CENVAT credit in respect of -
(i) the additional duty of excise under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978);
(ii) the additional duty of excise under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957);
(iii) the National Calamity Contingent duty under section 136 of the Finance Act, 2001 ( 14 of 2001); and
(iv) the additional duty under section 3 of the Customs Tariff Act, 1975 (51 of 1975), equivalent to the duty of excise specified under clauses (i), (ii) and (iii) above,
shall be utilized only towards payment of duty of excise leviable under the said Additional Duties of Excise (Textiles and Textile Articles) Act, or under the said Additional Duties of Excise (Goods of Special Importance) Act, or the National Calamity Contingent duty under the said section 136 of the Finance Act, 2001(14 of 2001) respectively, on any final products manufactured by the manufacturer or for payment of such duty on inputs themselves if such inputs are removed as such or after being partially processed;
(c) The CENVAT credit, in respect of additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975), paid on marble slabs or tiles falling under sub-heading No. 2504.21 or 2504.31 respectively of the First Schedule to the Tariff Act shall be allowed to the extent of thirty rupees per square metre;
(d) The CENVAT credit of the duty paid on the inputs shall not be allowed in respect of texturised yarn (including draw-twisted or draw-wound yarn) of polyesters falling under heading No. 54.02 of the First Schedule to the Tariff Act, manufactured by an independent texturiser, that is to say, a manufacturer engaged in the manufacture of texturised yarn (including draw-twisted or draw-wound yarn) of polyesters falling under heading No. 54.02, who does not have the facility in his factory (including plant and machinery) for manufacture of partially oriented yarn of polyesters falling under sub-heading No. 5402.42 of the First Schedule to the Tariff Act.
Explanation.- Where the provisions of any other rule or notification provide for grant of partial or full exemption on condition of non-availability of credit of duty paid on any input or capital goods, the provisions of such other rule or notification shall prevail over the provisions of these rules.
4. Conditions for allowing CENVAT credit.- (1) The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer:
Provided that in respect of final products falling under Chapter 62 of the First Schedule to the Tariff Act, the CENVAT credit of duty paid on inputs may be taken immediately on receipt of such inputs in the registered premises of the person who gets such final products manufactured on his account on job work subject to the condition that such inputs are used in the manufacture of such final products by the job worker.
(2) (a) The CENVAT credit in respect of capital goods received in a factory at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year;
(b) The balance of CENVAT credit may be taken in any financial year subsequent to the financial year in which the capital goods were received in the factory of the manufacturer, if the capital goods, other than components, spares and accessories, refractories and refractory materials and goods falling under heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Tariff Act, are in the possession and use of the manufacturer of final products in such subsequent years.
Illustration.- A manufacturer received machinery on April 16, 2001 in his factory. CENVAT of two lakh rupees is paid on this machinery. The manufacturer can take credit upto a maximum of one lakh rupees in the financial year 2001-2002, and the balance in subsequent years.
(3) The CENVAT credit in respect of the capital goods shall be allowed to a manufacturer even if the capital goods are acquired by him on lease, hire purchase or loan agreement, from a financing company.
(4) The CENVAT credit in
respect of capital goods shall not be allowed in respect of that part of the
value of capital goods which represents the amount of duty on such capital
goods, which the manufacturer claims as depreciation under section 32 of the
Income-tax Act, 1961( 43 of 1961).
(5) (a) The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning or any other purpose, and it is established from the records, challans or memos or any other document produced by the assessee taking the CENVAT credit that the goods are received back in the factory within one hundred and eighty days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eighty days, the manufacturer shall pay an amount equivalent to the CENVAT credit attributable to the inputs or capital goods by debiting the CENVAT credit or otherwise, but the manufacturer can take the CENVAT credit again when the inputs or capital goods are received back in his factory.
(b) The CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and dies sent by a manufacturer of final products to a job worker for the production of goods on his behalf and according to his specifications.
(6) The Commissioner of Central Excise having jurisdiction over the factory of the manufacturer of the final products who has sent the inputs or partially processed inputs outside his factory to a job-worker may, by an order, which shall be valid for a financial year, in respect of removal of such inputs or partially processed inputs, and subject to such conditions as he may impose in the interest of revenue including the manner in which duty, if leviable, is to be paid, allow final products to be cleared from the premises of the job-worker.
5. Refund of CENVAT credit.- Where any inputs are used in the final products which are cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate products cleared for export, the CENVAT credit in respect of the inputs so used shall be allowed to be utilized by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason such adjustment is not possible, the manufacturer shall be allowed refund of such amount subject to such safeguards, conditions and limitations as may be specified by the Central Government by notification in the Official Gazette:
Provided that no refund of credit shall, be allowed if the manufacturer avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims a rebate of duty under the Central Excise (No. 2) Rules, 2001, in respect of such duty.
6. Obligation of manufacturer of dutiable and exempted goods.- (1) The CENVAT credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods, except in the circumstances mentioned in sub-rule (2).
(2) Where a manufacturer avails of CENVAT credit in respect of any inputs, except inputs intended to be used as fuel, and manufactures such final products which are chargeable to duty as well as exempted goods, then, the manufacturer shall maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and the quantity of inputs meant for use in the manufacture of exempted goods and take CENVAT credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods.
(3) The manufacturer, opting not to maintain separate accounts shall follow either of the following conditions, as applicable to him, namely:-
(a) if the exempted goods are-
(i) tyres of a kind used on animal drawn vehicles or handcarts and their tubes, falling within Chapter 40 of the First Schedule to the Tariff Act;
(ii) newsprint, in rolls or sheets, falling within heading No.48.01 of the said First Schedule;
(iii) final products falling within Chapters 50 to 63 of the said First Schedule,
the manufacturer shall pay an amount equivalent to the CENVAT credit attributable to inputs used in, or in relation to, the manufacture of such final products at the time of their clearance from the factory; or
(b) if the exempted goods are other than those described in condition (a), the manufacturer shall pay an amount equal to eight per cent. of the total price, excluding sales tax and other taxes, if any, paid on such goods, of the exempted final product charged by the manufacturer for the sale of such goods at the time of their clearance from the factory.
Explanation.- The amount mentioned in conditions (a) and (b) shall be paid by the manufacturer by debiting the CENVAT credit or otherwise.
(4) No CENVAT credit shall be allowed on capital goods which are used exclusively in the manufacture of exempted goods, other than the final products which are exempt from the whole of the duty of excise leviable thereon under any notification where exemption is granted based upon the value or quantity of clearances made in a financial year.
(5)
The provisions of sub- rule (1), sub-rule (2), sub-rule (3) and sub-rule (4)
shall not be applicable in case the exempted goods are either-
(i) cleared to a unit in a free trade zone; or
(ii) cleared to a unit in a special economic zone; or
(iii) cleared to a hundred per cent. export-oriented undertaking; or
(iv) cleared to a unit in an Electronic Hardware Technology Park or Software Technology Park; or
(v) supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No.108/95-Central Excise, dated 28th August, 1995; or
(vi) cleared for export under bond in terms of the provisions of the Central Excise (No. 2) Rules, 2001.
7. Documents and accounts.- (1) The CENVAT credit shall be taken by the manufacturer on the basis of any of the following documents, namely :-
(a) an invoice issued by-
(i) a manufacturer for clearance of -
(I) inputs or capital goods from his factory or from his depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer;
(II) inputs or capital goods as such;
(ii) an importer;
(iii) an importer from his depot or from the premises of the consignment agent of the said importer if the said depot or the premises, as the case may be, is registered in terms of the provisions of Central Excise (No. 2) Rules, 2001;
(iv) a first stage dealer or a second stage dealer,
in terms of the provisions of Central Excise (No. 2) Rules, 2001;
(b) a supplementary invoice, issued by a manufacturer or importer of inputs or capital goods in terms of the provisions of Central Excise (No. 2) Rules, 2001 from his factory or from his depot or from the premises of the consignment agent of the said manufacturer or importer or from any other premises from where the goods are sold by, or on behalf of, the said manufacturer or importer, in case additional amount of excise duties or additional duty of customs leviable under section 3 of Customs Tariff Act, 1975 ( 51 of 1975) has been paid, except where the additional amount of duty became recoverable from the manufacturer or importer of inputs or capital goods on account of any non-levy or short-levy by reason of fraud, collusion or any wilful mis-statement or suppression of facts or contravention of any provisions of the Act or of the Customs Act, 1962 (52 of 1962) or the rules made thereunder with intent to evade payment of duty;
(c) a bill of entry.
(2) The manufacturer or producer taking CENVAT credit on inputs or capital goods shall take all reasonable steps to ensure that the inputs or capital goods in respect of which he has taken the CENVAT credit are goods on which the appropriate duty of excise as indicated in the documents accompanying the goods, has been paid.
Explanation.-
The manufacturer or producer taking
CENVAT credit on inputs or
capital goods received by him shall be deemed to have taken reasonable steps
if he satisfies himself about the identity and address of the manufacturer or
supplier, as the case may be, issuing the document specified in rule 7,
evidencing the payment of excise duty or the additional duty of customs, as
the case may be, either-
(a)
from his personal knowledge; or
(b)
on the strength of a certificate given by a person with whose handwriting or
signature he is familiar; or
(c)
on the strength of a certificate issued to the manufacturer or the supplier, as
the case may be, by the Superintendent of Central Excise within whose
jurisdiction such manufacturer has his factory or the supplier has his place
of business,
and where the identity and address of the manufacturer or the supplier is satisfied on the strength of a certificate, the manufacturer or producer taking CENVAT credit shall retain such certificate for production before the proper officer on demand.
(3) The CENVAT credit in respect of inputs or capital goods purchased from a first stage or second stage dealer shall be allowed only if such dealer has maintained records indicating the fact that the inputs or capital goods were supplied from the stock on which duty was paid by the producer of such inputs or capital goods and only an amount of such duty on pro rata basis has been indicated in the invoice issued by him.
(4) The manufacturer of final products shall maintain proper records for the receipt, disposal, consumption and inventory of the inputs and capital goods in which the relevant information regarding the value, duty paid, the person from whom the inputs or capital goods have been purchased is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer taking such credit.
(5) The manufacturer of final products shall submit within five days from the close of each month to the Superintendent of Central Excise, a monthly return in the form annexed to these rules.
Explanation.- In respect of a manufacturer availing of any exemption based on the value or quantity of clearances in a financial year, the provisions of this sub-rule shall have effect in that financial year as if for the expression “month”, the expression “quarter” was substituted.
8. Transfer of CENVAT credit.- (1) If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of such factory, then, the manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated factory.
(2) The transfer of the CENVAT credit under sub-rule (1) shall be allowed only if the stock of inputs as such or in process, or the capital goods is also transferred alongwith the factory to the new site or ownership and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the Commissioner.
10. Special dispensation in respect of inputs manufactured in factories located in specified areas of North East region.- Notwithstanding anything contained in these rules, where a manufacturer has cleared any inputs or capital goods, in terms of notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 32/99- Central Excise, dated the 8th July, 1999, or notification No. 33/99- Central Excise, dated the 8th July, 1999, the CENVAT credit on such inputs or capital goods shall be admissible as if no portion of the duty paid on such inputs or capital goods was exempted under any of the said notifications.
11. Power of Central Government to notify goods for deemed CENVAT credit.- Notwithstanding anything contained in rule 3, the Central Government may, by notification in the Official Gazette declare the inputs on which the duties of excise, or additional duty of customs paid, shall be deemed to have been paid at such rate or equivalent to such amount as may be specified in the said notification and allow CENVAT credit of such duty deemed to have been paid in such manner and subject to such conditions as may be specified in the said notification even if the declared inputs are not used directly by the manufacturer of final products declared in the said notification, but are contained in the said final products.
12. Recovery of CENVAT credit wrongly taken.- Where the CENVAT credit has been taken or utilized wrongly, the same along with interest shall be recovered from the manufacturer and the provisions of sections 11A and 11AB of the Act shall apply mutatis mutandis for effecting such recoveries.
13.
Confiscation and penalty.-(1)
If any person, takes CENVAT credit in respect of inputs or capital
goods, wrongly or without taking reasonable steps to ensure that appropriate
duty on the said inputs or capital goods has been paid as indicated in the
document accompanying the inputs or capital goods specified in rule 7, or
contravenes any of the provisions of these rules in respect of any inputs or
capital goods, then, all such goods shall be liable to confiscation and such
person, shall be liable to a penalty not exceeding the duty on the excisable
goods in respect of which any contravention has been committed, or ten
thousand rupees, whichever is greater.
(2) In a case, where the CENVAT credit has been taken or utilized wrongly on account of fraud, willful mis-statement, collusion or suppression of facts, or contravention of any of the provisions of the Act or the rules made thereunder with intention to evade payment of duty, then, the manufacturer shall also be liable to pay penalty in terms of the provisions of section 11AC of the Act.
(3) Any order under sub-rule (1) or sub-rule (2) shall be issued by the Central Excise Officer following the principles of natural justice.
Annexure (see rule 7)
PROFORMA
FOR MONTHLY RETURN UNDER RULE 7 OF THE CENVAT
Credit Rules, 2001
|
Sl.
No. |
Type
of document1 |
No.
and date of document |
Name
of the supplier |
Type
of supplier2 |
ECC
No of the supplier |
Date
on which inputs received |
Value3
|
Details
of credit taken |
For
the main item in the document4 |
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|
CENVAT |
SED |
AED (TTA) |
AED (GSI) |
Addl.
Duty |
Other |
Description
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Sub-heading
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Qty.
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Sl.
No. |
Type
of document1 |
No.
and Date of Document |
Name
of the supplier |
Type
of supplier2 |
ECC
No of the supplier |
Date
on which capital
goods received |
Value3
|
Details
of credit Taken |
For
the main item in the document4 |
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|
CENVAT |
SED |
AED (TTA) |
AED (GSI) |
Addl.
Duty |
Other |
Description
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Sub-heading
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Qty.
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||||||||
1.
Indicate whether invoice, Bill of Entry or any other document
2.
Indicate whether manufacturer, first stage dealer, second stage dealer
or importer
3.
Indicate full value of the goods covered by the document
4.
Give details with respect to the item with maximum duty covered by the
invoice
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|
OPENING BALANCE |
CREDIT TAKEN DURING THE MONTH |
CREDIT UTILIZED DURING THE MONTH |
CLOSING BALANCE |
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CENVAT |
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|
SED |
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AED (TTA) |
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AED (GSI) |
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ADDL. DUTY |
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OTHER (pl. specify) |
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OPENING BALANCE |
CREDIT TAKEN DURING THE MONTH |
CREDIT UTILIZED DURING THE MONTH |
CLOSING BALANCE |
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CENVAT |
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|
SED |
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AED (TTA) |
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AED (GSI) |
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ADDL. DUTY |
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OTHER (pl. specify) |
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Place:
Date:
Signature of the assessee or the authorised signatory
Name in capital letters
Designation
Seal of the assessee
(T.R. Rustagi)
Joint Secretary to the Government of India
F. No. 354 /66/ 2001-TRU
NOTIFICATION
No.34
/2001-CENTRAL EXCISE (N. T.)
G.S.R.
448 (E).- In exercise of the powers conferred by section 37 of the
Central Excise Act, 1944 (1 of 1944), the
Central Government hereby makes the following rules, namely:-
1. Short title, extent and commencement.- (1) These rules may be called the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001.
(2) They extend to the whole of india.
(3) They shall come into force on and from the 1st day of July, 2001.
2. Application.- These rules shall apply to a manufacturer who intends to avail of the benefit of a notification issued under sub-section (1) of section 5A of the Central Excise Act, 1944 ( 1 of 1944 ) ( hereinafter referred to as the Act) granting exemption of duty to excisable goods ( hereinafter referred to as subject goods) when used for the purpose specified in that notification.
3. Application by the manufacturer to obtain the benefit.- (1) A manufacturer who intends to receive subject goods for specified use at concessional rate of duty, shall make an application in quadriplicate in the Form at Annexure I to the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be ( hereinafter referred to as the said Assistant Commissioner or Deputy Commissioner ).
(2) The manufacturer shall make separate application in respect of each supplier of subject goods.
(3) The manufacturer shall execute a general bond with surety or security.
(4) The bond shall be for such amount as considered appropriate by the said Assistant Commissioner or Deputy Commissioner, to cover the recovery of duty liability estimated to be involved at any given point of time.
(5) The application shall be countersigned by the said Assistant Commissioner or Deputy Commissioner who shall certify therein that the said person has executed a bond to his satisfaction in respect of end use of the subject goods and indicate the particulars of such bond.
(6) Of the four copies of the application referred to in sub-rule (5), one copy shall be forwarded to the jurisdictional range Superintendent of the manufacturer of the subject goods, two copies shall be handed over to the manufacturer and one copy shall be retained, by the said Assistant Commissioner or Deputy Commissioner.
(7) One copy of the application referred to in sub-rule (6) received by the manufacturer, shall be forwarded by the said manufacturer to the manufacturer of subject goods.
4. Procedure to be followed by the manufacturer of subject goods. – (1) On the basis of the application referred to in sub-rule (7) of rule 3, the manufacturer of subject goods shall avail the benefit of the exemption notification.
(2) The manufacturer of the subject goods shall record on the application the removal details, such as No. and date of invoice, description, quantity and value of subject goods and amount of excise duty paid at concessional rate.
5. Manufacturer to give information regarding receipt of the subject goods and maintain records.- The manufacturer, receiving subject goods, shall maintain a simple account indicating the quantity and value of subject goods, the quantity of subject goods consumed for the intended purpose, and the quantity remaining in stock, invoice wise and shall submit a monthly return in Return at Annexure II to the said Assistant Commissioner or Deputy Commissioner by the tenth day of the following month.
6. Recovery of duty in certain cases.- Where the subject goods are not used by the manufacturer for the intended purpose, the manufacturer shall be liable to pay the amount equal to the difference between the duty leviable on such goods but for the exemption and that already paid, if any, at the time of removal from the factory of the manufacturer of the subject goods, alongwith interest and the provisions of section 11A and section 11AB of the Central Excise Act, 1944 (1 of 1944) shall apply mutatis mutandis for effecting such recoveries.
Annexure I
Application under Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001
( Original with 3 copies to be submitted through the Range Superintendent)
To,
The Assistant Commissioner or Deputy Commissioner of Central Excise,
Division ……….
Vide S. No………of Notification No…….Central Excise, dated the ……….issued under Section 5A (1) of the Central Excise Act, 1944 read with the relevant provisions of the Central Excise Act, 1944 ( 1 of 1944) and the Central Excise Tariff Act, 1985 ( 5 of 1986) and other laws for the time being in force the goods, namely,……… used for the specified purpose of ……attract the following excise duty (ies) (specify rates): Basic excise duty /Special excise duty /Additional duty(ies) /Other Duty(ies).
We
undertake to follow the Central Excise (Removal of Goods at Concessional Rate
of Duty for Manufacture of Excisable Goods)
Rules, 2001 as required by
the above notification. The
quantity and value of subject goods, we wish to obtain during the financial
year……. for the aforesaid specified purpose is…..(specify quantity and
value) and we intend to procure the subject goods for use in our premises
at………..
The estimated duty leviable on the subject goods but for the exemption under the above notification is rupees……..only (attach calculation sheet) and the estimated total duty on the subject goods payable at the time of removal under the above notification is rupees …..only (attach calculation sheet).
We also hereby undertake:
(a) to use the subject goods ……… for the purpose of ……. and to follow any other condition that the said notification imposes on us; and
(b) to pay on demand, in the event of failure to comply with (a) above, an amount equal to the difference between the duty leviable on such quantity of the subject goods but for the exemption under the aforesaid notification and that paid at the time of removal.
We have also executed the necessary bond dated…… (enclose the bond executed) for your acceptance.
Date Signature and stamp of authorised signatory, with name and address of the premise
Place
(Endorsement and counter-signature of the said Assistant Commissioner or Deputy Commissioner on the application)
It is hereby certified that M/s ….having their premise at…. Have executed the bond as required by the said rules, for rupees….only, which has been accepted on behalf of the President of India by the undersigned and entered at S. No. dated ……of Bond Register.
F. No.
Signature of the said Assistant Commissioner or
Deputy Commissioner with date, name, stamp and seal
Date
Place
Annexure II
Monthly Return ( See rule 5)
Name of subject goods
|
S.No. |
Description of subject goods |
Details |
Closing balance
|
Goods manufactured |
||||
|
Opening balance |
Received |
Total of columns (3) & (4) |
Quantity consumed for the intended purpose |
Nature |
Quantity |
|||
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
Note.- Separate entries should be made for each variety or class of goods used and manufactured.
I/We declare that I/we have compared the above particulars with the records (and) /books of my/our factory and that they are, insofar as I/we can ascertain complete.
Verified
Date :
Place:
Signature of manufacturer
Name in capital letters
Seal
(T.R. Rustagi)
Joint Secretary to the Government of India
F. No. 354 /66/ 2001-TRU