| Rule 1. |
Short title, extent and commencement.- |
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- These rules may be called the Central Excise Rules, 2002.
- They extend to the whole of India.
- They shall come into force on the 1st day of March, 2002.
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| Rule 2. |
Definitions.- In these rules, unless the context
otherwise requires, – |
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- “Act” means the Central Excise Act, 1944 ( 1 of 1944);
- “assessment” includes self-assessment of duty made by the
assessee and provisional assessment under rule 7;
- “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;
- “Board” means the Central Board of Excise and Customs
constituted under the Central Board of Revenue Act, 1963 (54 of
1963);
- “duty” means the duty payable under section 3 of the Act;
- “notification” means the notification published in the Official
Gazette;
- “Tariff Act” means the Central Excise Tariff Act, 1985 (5 of
1986);
- “warehouse” means any place or premises registered under rule 9;
and
- words and expressions used herein but not defined and defined in
the Act shall have the meanings respectively assigned to them in the
Act.
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| Rule 3. |
Appointment and jurisdiction of Central Excise
Officers.- |
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- The Board may, by notification, appoint such person as it thinks
fit to be Central Excise Officer to exercise all or any of the
powers conferred by or under the Act and these rules.
- 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 there under.
- Any Central Excise Officer may exercise the powers and discharge
the duties conferred or imposed by or under the Act or these rules
on any other Central Excise Officer who is subordinate to him.
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| Rule 4. |
Duty payable on removal.- |
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- Every person who produces or manufactures any excisable goods,
or who stores such goods in a warehouse, shall pay the duty livable
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:
- 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.
- **
- Notwithstanding anything contained in sub-rule (1), Commissioner
may, in exceptional circumstances having regard to the nature of the
goods and shortage of storage space at the premises of the
manufacturer where the goods are made, permit a manufacturer to
store his goods in any other place outside such premises, without
payment of duty subject to such conditions as he may specify.
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| Rule 5. |
Date for determination of duty and tariff
valuation.- |
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- 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.
- 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.
- **
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| Rule 6. |
Assessment of duty.- The assessee shall
himself assess the duty payable on any excisable goods: |
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Provided that in case of cigarettes, the Superintendent
or Inspector of Central Excise shall assess the duty payable before
removal by the assessee. |
| Rule 7. |
Provisional assessment.- |
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- 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.
- The payment of duty on provisional basis may be allowed, if the
assessee executes a bond in the form prescribed by notification by
the Board 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.
- 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.
- 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 specified by the Central
Government by notification issued under section 11AA or section 11
AB of the Act from the first day of the month succeeding the month
for which such amount is determined, till the date of payment
thereof.
- 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 specified
by the Central Government by notification issued under section 11 BB
of the Act from the first day of the month succeeding the month for
which such refund is determined, till the date of refund.
- Any amount of refund determined under sub-rule (3) shall be
credited to the Fund:
Provided that the amount of refund, instead of being credited to the
Fund, be paid to the applicant, if such amount is relatable to-
- the duty of excise paid by the manufacturer, if he had not
passed on the incidence of such duty to any other person; or
- the duty of excise borne by the buyer, if he had not passed
on the incidence of such duty to any other person.
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| Rule 8. |
Manner of payment- |
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- The duty on the goods removed from the factory or the
warehouse during a month shall be paid by the 5th day of the
following month:
Provided that in case of goods removed during the month of March,
the duty shall be paid by the 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 except in case of goods
removed during the month of March for which the duty shall be paid
by the 31st day of March.
Explanation.- For the purposes of this rule,-
- 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;
- if the assessee deposits the duty by cheque, the date of
presentation of the cheque in the bank designated by the Central
Board of Excise and Customs for this purpose shall be deemed to
be the date on which the duty has been paid subject to
realization of that cheque.
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(1A) |
Notwithstanding anything contained in sub-rule (1), the duty on the
goods removed from the factory or the warehouse, in the State of
Gujarat, during the second fortnight of February, 2002 and the month of
March, 2002 shall be paid by the 31st March, 2002 : |
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Provided that where an assessee in the State of Gujarat
is availing of the exemption under a notification based on the value of
clearances in a financial year, the duty on goods cleared during the
month of February, 2002 shall be paid by the 31st March, 2002. |
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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. |
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- The duty of excise shall be deemed to have been paid for
the purposes 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.
- If the assessee fails to pay the amount of duty by the due date,
he shall be liable to pay the outstanding amount along with an
interest at the rate of two per cent. per month or rupees one
thousand per day, whichever is higher, for the period starting with
the first day after due date till the date of actual payment of the
outstanding amount:
Provided that the total amount of interest payable in terms of this
sub-rule shall not exceed the amount of duty which has not been paid
by due date:
Provided further that till such time the amount of duty outstanding
and the interest payable thereon are not paid, it shall be deemed
that the goods in question in respect of which the duty and interest
are outstanding, have been cleared without payment of duty and the
consequences and the penalties as provided in these rules shall
follow.
Illustration 1.- X, an assessee, fails to pay excise duty of Rs. 31
lakhs payable on the goods cleared in February, by the 5th of March.
X pays the amount on 10th of March. The default has continued for 5
days. The interest payable by X is computed as follows:-
| 2% of the amount of default for 5 days |
= 2% of Rs. 31 lakhs x 5/31 |
= Rs. 10000 |
-(A) |
| Rs. 1000 per day of default |
= 5 x Rs. 1000 |
= Rs. 5000 |
-(B) |
The interest payable is the higher of the amounts (A) and (B).
Illustration 2.- Y, an assessee, was liable to pay an excise duty of
Rs. 5 lakhs payable on the goods cleared in June. Y pays only Rs. 4
lakhs by the 5th of July. Thus Y has defaulted in respect of Rs. 1
lakh. Y pays the balance amount on 30th of July. The default is for
25 days. The interest payable by Y is computed as follows:-
| 2% of the amount of default for 25 days |
= 2% of Rs. 100000 x 25/31 |
= Rs. 1613 |
-(A) |
| Rs. 1000 per day of default |
= 25 x Rs. 1000 |
= Rs. 25000 |
-(B) |
The interest payable is the higher of the amounts (A) and (B).
Illustration 3.- C, an assessee availing the SSI exemption scheme,
fails to pay excise duty of Rs. 10000 payable on the goods cleared
in May, by the 15th of June. C pays the amount on 20th of August.
The default is for 2 months and 5 days. The interest payable by C is
computed as follows:-
| 2% per month of the amount of default |
= 2% of Rs. 10000 x (2+ 5/31) |
= Rs. 432 |
-(A) |
| Rs. 1000 per day of default |
= (30+31+5) x Rs. 1000 |
= Rs. 66000 |
-(B) |
The interest payable is the higher of the amounts (A) and (B)
subject to a maximum of the amount of default = Rs. 10000.
- The provisions of section 11 of the Act shall be applicable for
recovery of the duty as assessed under rule 6 and the interest under
sub-rule (3) in the same manner as they are applicable for recovery
of any duty or other sums payable to the Central Government.
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| Rule 8A. |
Manner of payment in respect of speci¬fied goods on which excise
duty has been im¬posed with effect from 1st March, 2002. — |
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- Notwithstanding anything contained in rule 8, the duty on the
goods, specified in the Annexure to this rule, removed from the
factory or the warehouse during the period commencing on and from
the 1st March, 2002 and ending with and including the 31st May,
2002, shall be paid by the 15th day of June, 2002.
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.
- The duty of excise shall be deemed to have been paid for the
purposes 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.
- If the assesssee fails to pay the amount of duty by due date, he
shall be liable to pay the outstanding amount along with interest at
the rate specified by the Central Government vide notification
issued under section 11AB of the Act 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.
- If the assessee defaults in payment of duty by the 15th day of
June 2002, then, the assessee shall forfeit the facility to pay the
dues in instalments as provided under sub-rule (1) of rule 8 for the
clearances made after the 1st day of June, 2002 for a period of two
months, commencing on and 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 the dues are paid, whichever is
later, and during this period the assessee shall be required to pay
excise duty for each consignment by debiting to the account current
and in the event of any failure to do so, 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.
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Annexture |
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- All goods specified at S. No. 9 to 50 of the Table to the
notification of the Government of India, Ministry of Finance
(Department of Revenue) No. 10/2002-Central Excise, dated the 1st
March, 2002 published in the Gazette of India vide number G.S.R. 131
(E), dated the 1st March, 2002, which were exempt from whole of the
duty leviable thereon immediately prior to 1st March, 2002 and on
which duty has become leviable with effect from 1st March, 2002, at
the rate of 4% ad valorem, subject to the conditions specified in
that notification or, as the case may be, at the rate of 16% ad
valorem.
- Granite falling under heading No. 68.07 manufactured by units
which would have been eligible for exemption from duty whether in
whole or in part under notification No. 8/2001-Central Excise or No.
9/2001-Central Excise, dated the 1st March, 2001, as they existed
before 1st March, 2002 and granite failling under heading No. 68.07
manufactured by units which would have been eligible for exemption
whether in whole or in part if such exemption had not been withdrawn
under Notification No. 8/2002-Central Excise or, as the case may be,
under Notification No. 9/2002-Central Excise, both dated the 1st
March, 2002.
- Woven fabrics of cotton, falling under Chapter 52, when
subjected to any one or more of the following processes, namely :—
- flanellete raising;
- stentering;
- damping on grey and bleached sorts;
- back filling on grey and bleached sorts;
- singeing, that is to say, burning away of knots and loose
ends in the fabrics;
- cropping or butta cutting;
- curing or heat setting;
- padding, that is to say, applying starch or fatty material
on one or both sides of the fabric; or
- expanding,
if such fabrics are processed in a factory which does not have
the facilities (including plant and equipment) for carrying out
bleaching, dyeing or printing or any one or more of these
processes with the aid of power or steam and such fabrics were
exempt from whole of the duties leviable thereon under the First
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and
the First Schedule to the Additional Duties of Excise (Goods of
Special Importance) Act, 1957 (58 of 1957), immediately prior to
1st March, 2002 and on which duties have be¬come leviable with
effect from 1st March, 2002 at the rate of 12% ad valorem.
- Woven fabrics of man-made fibres, falling under Chapter 54
or Chapter 55, when subjected to any one or more of the
following processes, namely:—
- singeing, that is to say, burning away of knots and
loose ends in the fabrics;
- padding, that is to say, application of natural starch to
one or both sides of the fabrics;
- back filling, that is to say, application of starch to one
side of the fabrics;
- cropping, that is to say, cutting away mechanically of loose
ends from the fabrics; or
- the process of blowing (steam pressing) carried out on woven
fabrics of acrylic fibre,
if such fabrics are processed in a factory which does not have
the facilities (including plant and equipment) for carrying out
bleaching, dyeing or printing or any one or more of these
processes with the aid of power or steam, and such fabrics were
exempt from whole of the duties leviable thereon under the First
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and
the First Schedule to the Additional Duties of Excise (Goods of
Special Importance) Act, 1957 (58 of 1957), immediately prior to
1st March, 2002 and on which duties have be¬come leaviable with
effect from 1st March, 2002, at the rate of 12% ad valorem.
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| Rule 9. |
Registration- |
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- 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 or rule 9 of the Central Excise (No.2) Rules,
2001 shall be deemed to be as valid as the registration made under
this sub-rule for the purpose of these rules.
- 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.
- The registration under sub-rule (1) shall be subject to such
conditions, safeguards and procedure as may be specified by
notification by the Board.
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| Rule 10. |
Daily stock account.- |
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- 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.
- 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.
- All such records shall be preserved for a period of five years
immediately after the financial year to which such records pertain.
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| Rule 11. |
Goods to be removed on invoice.- |
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- 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.
Provided that a manufacturer of yarns or fabrics falling under
Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments
falling under Chapter 61 or 62 of First Schedule to the Tariff Act
may remove the said goods under a proforma invoice signed by him or
his authorised agent. The provisions of sub-rules (2) to (5) shall
apply to the proforma invoice except that the said invoice shall not
contain the details of the duty payable. The manufacturer shall,
within five working days from the issuance of the proforma invoice
prepare the invoice in terms of this rule after making adjustments
in respect of the goods rejected and returned by the buyer. The
proforma invoice and the invoice issued in terms of this sub-rule
shall have cross reference to each other by way of their serial
numbers.
Provided further that the said period of five working days, as
referred to in the first proviso, may be extended upto a period not
exceeding twenty-one days, inclusive of the said period of five
working days, by the Commissioner of Central Excise, on receipt of a
request from the said manufacturer
- The invoice shall be serially numbered and shall contain the
registration number, name of the consignee, description,
classification, time and date of removal, mode of transport and
vehicle registration number, rate of duty, quantity and value, of
goods and the duty payable thereon.
- The invoice shall be prepared in triplicate in the following
manner, namely:-
- the original copy being marked as ORIGINAL FOR BUYER;
- the duplicate copy being marked as DUPLICATE FOR
TRANSPORTER;
- the triplicate copy being marked as TRIPLICATE FOR ASSESSEE.
- 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.
- The owner or working partner or the Managing Director or the
Company Secretary or any person duly authorised for this purpose
shall authenticate each foil of the invoice book, before being
brought into use.
- Before making use of the invoice book, the serial numbers of the
same shall be intimated to the Superintendent of Central Excise
having jurisdiction.
- The provisions of this rule shall apply mutatis mutandis to
goods supplied by a first stage dealer or a second stage dealer.
Explanation.- For the purposes of this rule, “first stage dealer”
and “second stage dealer” shall have the meanings assigned to them
in CENVAT Credit Rules, 2002.
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| Rule 12. |
Filing of return.- |
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- Every assessee shall submit to the Superintendent of Central
Excise a monthly return in the form specified by notification by the
Board, 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 the form specified by
notification by the Board , of production and removal of goods and
other relevant particulars, within twenty days after the close of
the quarter to which the return relates.
Provided further that an assessee is-
- availing the exemption under a notification based on value
of clearances in a financial year; or
- manufacturing processed yarn, unprocessed fabrics falling
under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 of First Schedule
to the Tariff Act; or
- manufacturing ready made garments falling under Chapter 61
or 62 of First Schedule to the Tariff Act, which prior to 1st
day of April, 2003 were eligible for an exemption under a
notification based on value of clearances in a financial year
he shall file a quarterly return in the form specified by
notification be the Board, of production and removal of goods
and other relevant particulars, within twenty days after the
close of the quarter to which the return relates.
-
- Notwithstanding anything containing in sub-rule (1), every
assessee shall submit to the Superintendent of Central Excise,
an Annual Financial Information Statement for the preceding
financial year to which the statement relates in the form
specified by notification by the Board by 30th day of November
of the succeeding year.
- The Central Government may, by notification, and subject to
such conditions or limitations as may be specified in such
notification, specify assessee or class of assessees who may not
require to submit such an Annual Financial Information Statement
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| Rule 12A. |
Filling of return in respect of specified goods on which excise
duty has been imposed on and from the 1st March, 2002. — |
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Notwithstanding anything contained in rule 12, every assessee shall
submit, in respect of goods specified in the Annexure to rule 8A, to the
Superintendent of Central Excise a return for the months of March, April
and May, 2002, in the form specified by notification by the Board, of
production and removal of the said goods and other relevant particulars,
by the 10th day of June 2002. |
| Rule 12 AA |
Job work in article of jewellery.-
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- Notwithstanding any thing contained in these rules, every
person (not being an export-oriented unit or a unit located in
special economic zone) who gets article of jewellery falling under
heading 7113 of the First Schedule to the Central Excise Tariff Act,
1985 (5 of 1986) (hereinafter referred to as the Tariff Act),
produced or manufactured on his behalf, on job work basis,
(hereinafter referred to as ‘"the said person") shall obtain
registration, maintain accounts, pay duty leviable on such goods and
comply with all the relevant provisions of these rules, as if he is
an assessee:
- If the said person desires clearance of excisable goods for home
consumption or for exports from the premises of the job worker, he
shall pay duty on such excisable goods and prepare an invoice, in
the manner referred to in rules 8 and 11 respectively except for
mentioning the date and time of removal of goods on such invoice.
- The original and the duplicate copy of the invoice so prepared
shall be sent by him to the job worker from whose premises the
excisable goods after completion of job work are intended to be
cleared, before the goods are cleared from the premises of the job
worker.
- The job worker shall fill up the particulars of date and time of
removal of goods before the clearance of goods and after such
clearance the job worker shall intimate to the said person, the date
and time of the clearance of goods for completion of the particulars
by the said person in the triplicate copy of the invoice.
- The said person may supply or cause to supply to a job worker,
the following goods, namely:-
- inputs in respect of which he may or may not have availed
CENVAT credit in terms of the CENVAT Credit Rules. 2004, without
reversal of the credit thereon; or
- goods manufactured in the factory of the said person without
payment of duty;
under a challan, consignment note or any other document (herein
referred to as ‘document") with such information as specified in
sub-rule (2) of rule 11 of the Central Excise Rules, 2002, duly
signed by him or his authorised agent.
- The responsibility in respect of accountability of the goods,
referred to in sub-rule (5) shall lie on the said person.
- Notwithstanding any thing contained in these rules, the job
worker shall not be required to get himself registered or shall
not be required to maintain any record evidencing the processes
undertaken for the sole purposes of undertaking job work under
these rules unless he has exercised his option in terms of the
proviso to sub-rule (1).
- The job worker, with or without completing the job work may,-
- return the goods without payment of duty to the said person;
or
- clear the goods for home consumption or for exports;
subject to receipt of an invoice from the said person, as
mentioned in sub-rule (4).
- The job worker shall clear the goods after filling in invoice
the time and date of removal and authentication of such details.
The rate of duty on such goods shall be the rate in force on
date of removal of such goods from the premises of the job
worker and no excisable goods shall be removed except under the
invoice.
Explanation 1. - For the purpose of this rule, "job worker"
means a person engaged in manufacture or processing on behalf
and under the instructions of the said person from any inputs or
goods supplied by the said person or by any other person
authorized by the said person, so as to complete a part or whole
of the process resulting ultimately in manufacture of articles
of jewellery falling under heading 7113 of the First Schedule to
the Central Excise Tariff Act, 1985, and the term "job work"
shall be construed accordingly.
Explanation 2.- For the purposes of this rule, article of
jewellery shall mean articles of jewellery on which brand name
or trade name is indelibly affixed or embossed on itself.
Explanation 3. For the purposes of this notification, ‘brand
name or trade name’ means a brand name or trade name, whether
registered or not, that is to say, a name or a mark, such as a
symbol, monogram, label, signature or invented words or any
writing which is used in relation to a product, for the purpose
of indicating, or so as to indicate, a connection in the course
of trade between the product and some person using such name or
mark with or without any indication of the identity of that
person
Explanation 4.- For the removal of doubts, it is hereby
clarified that if any goods or part thereof is lost, destroyed,
found short at any time before the clearance of articles of
jewellery falling under heading 7113 of the First Schedule to
the Tariff Act or waste, by-products or like goods arising
during the course of manufacture of such goods, the said person
shall be liable to pay duty thereon as if such goods were
cleared for home consumption.
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| Rule 12B. |
Omitted vide Notification No. 11/2004-C.E. (N.T.), dated 9-7-2004. |
| Rule 13. |
Omitted w.e.f. 1-4-2003 vide Notification No. 12/2003-C.E. (N.T.), dated
1-3-2003.
|
| Rule 13A. |
Omitted w.e.f. 1-4-2003 vide Notification No. 12/2003-C.E. (N.T.), dated
1-3-2003.
|
| Rule 14. |
Omitted w.e.f. 1-4-2003 vide Notification No. 12/2003-C.E. (N.T.), dated
1-3-2003.
|
| Rule 15. |
Special procedure for payment of duty.- |
| |
- 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 specified in the
said notification, subject to such limitations and conditions,
including those relating to interest or penalty, as may be specified
in such notification.
- 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.
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| Rule 16. |
Credit of duty on goods brought to the factory. - |
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- Where any goods on which duty had been paid at the time of
removal thereof are brought to any factory for being re-made,
refined, re-conditioned or for any other reason, the assessee shall
state the particulars of such receipt in his records and shall be
entitled to take CENVAT credit of the duty paid as if such goods are
received as inputs under the CENVAT Credit Rules, 2002 and utilise
this credit according to the said rules.
- If the process to which the goods are subjected before being
removed 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 received
under sub-rule (1) at the rate applicable on the date of removal and
on the value determined under sub-section (2) of section 3 or
section 4 or section 4A of the Act, as the case may be.
Explanation: The amount paid under this sub-rule shall be allowed as
CENVAT credit as if it was a duty paid by a manufacturer who removes
the goods.
- 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.
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| Rule 16A |
Removal of goods for job work, etc.- Any inputs
received in a factory may be removed as such or after being partially
processed to a job worker for further processing, testing, repair,
re-conditioning or any other purpose subject to the fulfillment of
conditions specified in this behalf by the Commissioner of Central
Excise having jurisdiction. |
| Rule 16B |
Special procedure for removal of semi-finished goods for certain
purposes.- The Commissioner of Central Excise may by special
order and subject to conditions as may be specified by the Commissioner
of Central Excise, permit a manufacturer to remove excisable goods which
are in the nature of semi-finished goods, for carrying out certain
manufacturing processes, to some other premises and to bring back such
goods to his factory, without payment of duty, or to some other
registered premises and allow these goods to be removed on payment of
duty or without payment of duty for export from such other registered
premises. |
| Rule 16C |
Special procedure for removal of excisable goods for carrying
out tests.- The Commissioner of Central Excise may, by special
order and subject to such conditions as may be specified by the
Commissioner of Central Excise, permit a manufacturer to remove
excisable goods manufactured in his factory for carrying out tests to
some other premises and to bring back such goods to his factory, without
payment of duty, or to some other registered premises and allow these
goods to be removed on payment of duty, or without payment of duty for
export from such other registered premises: |
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Provided that this rule shall not apply to the goods known as
“prototypes” which are sent out for trial or development test. |
| Rule 17. |
Removal of goods by a Hundred per cent. Export-Oriented
undertaking for Domestic Tariff Area.- |
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- Where any goods are removed from a hundred per cent.
export-oriented undertaking 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 or by utilizing the CENVAT credit.
- The unit shall maintain in the form specified by notification by
the Board appropriate account relating to production, description of
goods, quantity removed, and the duty paid.
- The unit shall submit a monthly return, in the form specified,
by notification, by the Board, to the Superintendent of Central
Excise, within ten days from the close of the month to which the
return relates, in respect of excisable goods manufactured in, and
receipt of inputs and capital goods in, the unit.
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| Rule 18. |
Rebate of duty.- |
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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.
|
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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. |
| Rule 19. |
Export without payment of duty .- |
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- 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.
- 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.
- The export under sub-rule (1) or sub-rule (2) shall be subject
to such conditions, safeguards and procedure as may be specified by
notification by the Board.
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| Rule 20. |
Warehousing provisions.- |
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- 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.
- 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.
- 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.
- 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.
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| Rule 21. |
Remission of duty.- |
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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 also 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. |
| Rule 22. |
Access to a registered premises.- |
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- 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.
- 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.
- 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,-
- the records maintained or prepared by him in terms of
sub-rule (2);
- the cost audit reports, if any, under section 233B of the
Companies Act, 1956 ( 1 of 1956); and
- the Income-tax audit report, if any, under section 44AB of
the Income-tax Act, 1961 ( 43 of 1961), for the scrutiny of the
officer or audit party, as the case may be.
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| Rule 23. |
Power to stop and search .- |
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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.
|
| Rule 24. |
Power to detain or seize goods |
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If a Central Excise Officer, has reason to believe that any goods, which
are liable to excise duty but no duty has been paid thereon or the said
goods were removed with the intention of evading the duty payable
thereon, the Central Excise Officer may detain or seize such goods. |
| Rule 25. |
Confiscation and penalty |
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- Subject to the provisions of section 11 AC of the Act, if
any producer, manufacturer, registered person of a warehouse or a
registered dealer, —
- removes any excisable goods in contravention of any of the
provisions of these rules or the notifications issued under
these rules; or
- does not account for any excisable goods produced or
manufactured or stored by him; or
- 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
- 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.
- An order under sub-rule (1) shall be issued by the Central
Excise Officer, following the principles of natural justice.
|
| Rule 26. |
Penalty for certain offences.- |
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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. |
| Rule 27. |
General penalty.- |
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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. |
| Rule 28. |
Confiscated property to vest in Central Government.- |
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- When any goods are confiscated under these rules, such thing
shall thereupon vest in the Central Government .
- 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.
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| Rule 29. |
Disposal of confiscated goods |
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Confiscated goods 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. |
| Rule 30. |
Storage charges in respect of goods confiscated and redeemed.-
|
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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. |
| Rule 31. |
Power to issue supplementary instructions.- |
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- 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.
|
| Rule 32. |
Omitted. |
| Rule 33. |
Transitional provision.-
|
| |
Any notification, circular, instruction, standing order, trade notice or
other order issued under the Central Excise (No. 2) Rules, 2001 by the
Board, the Chief Commissioner or the Commissioner of Central Excise, and
in force as on the 28th day of February, 2002, shall, to the extent it
is relevant and consistent with these rules, be deemed to be valid and
issued under the corresponding provisions of these rules. |