Notification No. 50 dated 28^th June 2001 (NT) {(As amended by Notification No. 12 dated 1^st March 2002 (NT)}

In exercise of powers conferred under Rule 14 of the Central Excise (No. 2) Rules, 2001, the Central Board of Excise and Customs hereby notifies the following procedure for procurement, accounting and disposal of Central Excise Stamps and matters pertaining to production, storage, control, removal and payment of duty on matches, other than Bengal Lights falling under sub-heading No. 3605.10:

(a)      All Central Excise Stamps shall be procured from a district Revenue Treasury or Sub-Treasury.

(b)     

(i)     A registered person wishing to obtain Central Excise Stamps for cash shall submit to the treasury a challan in quintuplicate for the amount to be paid, specifying on the reverse the number and class of Central Excise Stamps required, together with their price. The treasury shall accept the amount specified in the challan and shall return the duplicate, triplicate and quintuplicate copies of the receipted challan to the registered person.

(ii)    The registered person shall present duplicate an quintuplicate copies of the challan to the Inspector or Superintendent incharge of the factory who, after satisfying himself about the correctness of the amount remitted, shall return the quintuplicate copy to the assessee with an endorsement to the District Revenue Treasury Officer or Sub-Treasury Officer to issue the appropriate number of Central Excise Stamps. The registered person shall present quintuplicate copy with such endorsement to the District Revenue Treasury Officer or Sub-Treasury Officer, who shall thereafter supply the Central Excise Stamps to the registered person.

(c)    A registered person whishing to obtain Central Excise Stamps on credit shall execute a bond in the Form specified in Annexure A with such surety or sufficient security as the Assistant Commissioner or Deputy Commissioner of Central Excise may require.

(d)    When the provision of sub-paragraph (c) have been complied with the, the Assistant Commissioner or Deputy Commissioner of Central Excise shall, after due enquiry, authorise the issue of Central Excise Stamps on credit to the registered person and shall communicate the same to the District Revenue Treasury officer or Sub-Treasury Officer concerned and to the Superintendent in charge of the factory with full particulars of bond executed and the extend of credit granted. The number of Central Excise Stamps to be supplied at a time shall not exceed the average out-turn of the factory for a number of days, not exceeding thirty to be fixed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise:

Provided that the total price of unused Central Excise Stamps in balance with the registered person and of those indented for shall not exceed the amount of security furnished by the registered person.

(e)    A registered person authorised to obtain Central Excise Stamps on credit shall for each supply submit to the Superintendent in charge of the factory a requisition in quadruplicate in the Form annexed as Annexure B. If satisfied that the detail stated in the requisition are correct the said office shall retain the triplicate for his own record and send the original, duplicate and quadruplicate to the District Revenue Treasury Officer or Sub-Treasury Officer concerned, who shall retain the original in his office, issue the number of Central Excise Stamps required, return the duplicate, duly endorsed to the said officer and send the quadruplicate copy to the Chiefs Account Officer to the Commissionerate.

The Manufacturer shall keep all his Central Excise Stamps, whether procured for cash or on credit, in a secure place within the factory premises, and shall keep them open for inspection at any time by any officer. The inspector or Superintendent in Charge of the factory may at any time examine the stock of the Central Excise Stamps on any working day and check the balance with that shown in the register and shall record the result in the register. If any Central Excise Stamps procured on credit are missing or unaccounted for, he shall call on the registered person to pay immediately into the Treasury the full price thereof and to produce the treasury challan within a week 

(a)    The manufacturer shall maintain an account of quantity and value of -

(i)       receipt of Central Excise Stamps purchased for cash and on credit;

(ii)      Central Excise Stamps affixed on boxes or booklets;

(iii)      Central Excise Stamps damaged and handed over to the Inspector or Superintendent in charge of the factory; and

(iv)      Central Excise Stamps lost in the process or not otherwise accounted for.

(b)    The manufacturer shall submit to the Superintendent incharge of the factory a monthly return in the Form annexed as Annexure C before the tenth day of the month following that to which the return relates.

(a)    As soon as possible, after matches are finished, they shall, unless intended for export, be put into boxes or booklets which shall then, save as otherwise provided by these procedures, be affixed with Central Excise Stamps and enclosed in packets or other outer coverings as the case may be.

(b)    Every Central Excise Stamp shall be so affixed that -

(i)       the box or booklet on which the Central Excise Stamp is affixed can not be opened without tearing the Central Excise Stamp;

(ii)    when it is affixed to a box, the Central Excise Stamp shall cover one side of the inner tray and a part of the rear or bottom or front or top of the outer box, and the Central Excise Stamp itself shall not be covered by either the factory�s label or any advertisement label;

(c)    Where the matches are intended for export out of India, the Central Excise Stamps need not be affixed thereto and, unless they are to be exported without payment of duty in accordance with rule 19 of the Central Excise (No. 2) Rules, 2001, the duty shall be paid by the assessee before removal of each consignment by debit to the account current maintained by him.

(d)    Where the board is satisfied that by reason of the fact that the necessary Central Excise Stamps are not available or for any other relevant reason it is necessary or expedient so to so, it may, by general or special order, allow the duty on matches to be paid, without affixing Central Excise Stamps to such box or booklet, by debit to the account current before the removal of each consignment subject to any condition which may be imposed in the order.

(a)    No packet or case containing boxes or booklets of matches, other than those intended for export out of India and those to which the provisions of the paragraph 4(c) above apply, shall be closed and reckoned as a unit unless a Central Excise Stamp of the appropriate class has been affixed to each box or booklet in the manner laid down in paragraph 4(a) above.

(b)    Each case or packet shall contain only an integral number whether one hundred boxes or booklets of matches or multiplies thereof. The boxes or booklets in each case or packet shall contain the same number of matches on the average and shall, except where the matches are exempted from bearing Central Excise Stamps, bear Central Excise Stamp of the same class.

(c)    Every packet, box or booklet, or the manufacturer label affixed thereto shall bear in clearly discernable characters, the name of the factory or a distinguishing mark, which may take the form of a special design whereby the origin of the matches can be traced. Specimens of all such labels shall be submitted to the Superintendent in-charge of the factory duly declaring the ownership of the label before that are brought in use. In case, the label is owned by some other manufacturer, a consent letter from the owner of the label duly declaring the rate of duty applicable to him, should also be filed.

(d)    Each case or packet of matches shall be legibly marked in ink or oil colour with progressive number, commencing with number 1, for each year and in different series for each class of matches, the number of boxes or booklets in hundreds contained in each case of packet and the grade of Central Excise Stamps affixed thereto.

(e)    Every box or booklet of matches, issued for home consumption, shall have on the box or booklet, or on the manufacturers label affixed thereto, a statement in clearly discernable character of the sticks contained in the box or booklet, and of the retail price at which the manufacturer intends that the box or booklet should be sold:

Provided that the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise may, by an order in writing and subject to such limitations and conditions, as may be prescribed by him in the order, relax the provisions of this sub-paragraph.

(a)    If any Central Excise Stamps are torn during examination or inspection taken up by the inspector of Superintendent of Central Excise, the said officer may order that the containers to which they are affixed shall be returned to the registered person for re-stamping and shall be replaced immediately by an equal number of boxes or booklets of the same class from the finished stock.

(b)    If examination or inspection by the Inspector or Superintendent of Central Excise shows that Central Excise Stamps of insufficient value have been affixed, the said officer may order the boxes or booklets in question to be returned to the factory, where the Central Excise Stamps Shall be removed and replaced by others of the proper value.

All boxes or booklets containing matches intended for export and on which no Central Excise Stamps have been affixed, shall be packed in cases or packets on which shall be pasted labels inscribed �Matches not affixed with Central Excise Stamps for Export� and shall be entered in daily stock account maintained under rule 10 of Central Excise (No. 2) Rules, 2001.

When it is desired to remove matches bearing Central Excise purchase on credit, the registered person shall unless he maintains an account-current with the Commissioner, pay the price of the Central Excise Stamps and no such matches may be removed until after the price of the Central Excise Stamps has been so paid or has been debited to such account-current, if any.

ANNEXURE A

BOND (WITH SURELY/ SECURITY) TO BE EXECUTED BY MATCH MANUFACTURER IN RESPECT OF CENTRAL EXCISE STAMPS OBTAINED ON CREDIT

(Delete the letter and words not applicable)

I/ we ____________________ of _________________ the owner(s) of the ________________ Match Factory situated at ___________________ [hereinafter called the obligor(s) _________________ and __________________ of ___________________ [hereinafter called the surety) am/ are jointly and severally bond to the President of India in the sum of ________________________ rupees to be paid to the President of India for which payment I/ we jointly and severally bind myself/ ourselves and my/ our legal representatives.

Whereas the obligor(s) has/ have applied to the Commissioner of Central Excise _____________________ hereinafter called the Commissioner for the supply on credit of Central Excise Stamps to be affixed to boxes and booklets of matches to be manufactured in the above named factory;

And whereas the Commissioner has agreed that the said obligor(s) may obtain from the Government Treasury at ______________

Central Excise Stamps of such kind as may be required by the said obligors(s), not exceeding in the value of sum ____________________ rupees at any one time and may form time to time obtain further Central Excise Stamps provided that the value of the Central Excise Stamps so supplied from time to time shall not exceed the value of the Central Excise Stamps on the boxes or booklets matches which may, to the satisfaction of the Commissioner, be deposited in the store-room;

And whereas the obligors(s) agrees and undertake(s) to return the said Central Excise Stamps if so required and further agree(s) and undertakes to pay to the Commissioner the value of the Central Excise Stamps not so returned, excepting such Central Excise Stamps in respect of which under the Central Excise (No. 2) Rules, 2001, the obligor(s) may be entitled to a refund form the Commissioner;

Whereas the Commissioner has required the obligor(s) to deposit as guarantee for the amount of this bond the sum of ______________ rupees in cash;

And whereas the obligors has/ have furnished such guarantee by depositing with the Commissioner the cash/ securities as aforementioned; The condition of this bond is that if the obligator(s) shall observe all the provisions of the Central Excise Act, 1944 and the Rules made thereunder and all such amendments thereto as may be issued from time to time so far as they relate to Central Excise Stamps obtained on credit.

And if the obligor(s) shall utilize the Central Excise Stamps obtained on credit only for the purpose of affixing the same to boxes or booklets of matches manufactured in the said factory;

And if the obligor(s) shall return the unused Central Excise Stamps to the Commissioner if so required;

And if the obligor(s) shall pay into the treasury approved by the Commissioner within ten days of such demand being made the full price of the Central Excise Stamps not so returned, less the price of such Central Excise Stamps in respect of which, under the Central Excise Rules, 2001, the obligors are entitled to a refund from the Commissioner;

This obligation shall be void.

Otherwise and on breach or failure in the performance of any part of this condition, the same shall be in full force.

I/ we declare that this bond is given under the orders of the Central Government for the performance of an act in which the public are interested.

Place:

Date:

Signature(s) of obligor(s)

Signature(s) of surety(ies)

Accepted by me this _______________________ day of _____________________ 200 __.

[___________________ of Central Excise]

[for and on behalf of the President of India]

Range_______________________

Circle________________________

ANNEXURE B

REQUISITION FOR SUPPLY OF CENTRAL EXCISE STAMPS ON CREDIT

To,

_______________________ of Central Excise,

Sir,

I/ we have in our possession this day the under mentioned quantity of Central Excise Stamps:

2.     Please ask the Treasury Officer at ______________________ to supply me/ us with Central Excise Stamps of the following denomination on credit for use at my/ our factory:

Place _________________

Date __________________                                                                                Signature of registered person

Memorandum No.

Forwarded to the Treasury Officer,

The quantities of Central Excise Stamps indented for are covered by a security/ surely bond executed by the registered person(s) and may be issued on credit.

Place ___________________

Date ______________________

__________________________ Signature of Central Excise

Memorandum No.

Returned to the _______________________ of Central Excise after supply of [Central Excise Stamps] to the assessee.

Place ____________________

Date _____________________                                                                   Signature of Treasury Officer ____________

(Original/ Duplicate/ Triplicate/ Quadruplicate)

ANNEXURE C

MONTHLY RETURN OF STOCKS AND RECEIPTS OF CENTRAL EXCISE STAMPS OBTAINED ON CREDIT/ CASH

Name of factory: _________________________________________________________________

Address: _______________________________________________________________________ Month: _________ 20_____

Superintendent of Central Excise: ________ Range: ____________ Address: _______________________ Division: _____________

I declare that to the best of my knowledge and belief the information furnished herein is true and complete.

Place:

Date:

Signature of assessee

[Note: For Central Excise Stamps purchased on cash, only Part lll should be filled]

2.     This notification will come into force on 1^st July, 2001.