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Regarding Central Excise - Procedure for despatch of one consignment of
more than one vehicle
Circular
No. 252
dated 16th October 1996
Representations
have been received by the Board regarding difficulties faced by the
manufacturers in documentation where a consignment of capital goods like heavy
machinery etc. which are first assembled by the manufacturer and are later dis-
assembled only for the convenience of transport is loaded in more than one
vehicle and travel separately.
2.
Following difficulties have been experienced in this regard:
(a)
It is not possible to load on the entire machinery in one vehicle.
(b)
Duty in such cases is paid on the whole consignment as excisable goods on
total value and therefore it is not possible to
indicate separate value for each part consignment.
3.
It is observed that issue of single invoice is permissible under Rule 52A
(4) and Rule 57GG (&) for a consignment which is loaded on more than one
vehicle provided all such vehicles travel together as a convoy.
4.
Where such a consignment is loaded in more than one vehicle, which travel
separately or at intervals, the following procedure should be followed:
4.1
The manufacturer will intimate, on case to case basis, his option to
avail this special procedure in writing for the complete machinery sought to be
cleared in a number of individual part consignments after first being assembled
to the Jurisdictional Assistant Commissioner of Central Excise with a copy to
the Jurisdictional Range Superintendent of Central Excise along with the
description of such machinery/equipment giving reference to the declaration
filed under Rule 173 B of Central Excise Rules, 1944, its tariff classification
and the list of components of such machinery/ equipment in dis-assembled form
and its value and an undertaking as given in Annexure-A. These intimations shall
be given at least 48 hours prior to removal on any working day.
4.2
Though separate verification need not necessarily be made for each and
every consignment, before the removal of the first consignment Assistant
Commissioner should verify the relevant declaration filed under Rule 173B within
a fortnight of its filing and should satisfy himself that the various part
consignments are indeed constituents of the complete machinery which has been
first assembled.
4.3
A separate invoice shall be made out in respect of each conveyance on
which the part consignment is loaded.
4.4
The manufacturer will pay the entire duty on the first such invoice
(hereinafter referred to as "Parent Invoice") on the basis of the
entire value of the machinery unit/ equipment. This parent invoice shall be
prepared quoting all vehicle numbers, total value/ duty of the consignment. An
inventory shall be annexed to the invoice giving detailed item-wise description
as loaded in different vehicles.
4.5
On subsequent part invoices, the Serial Number of the Parent Invoice and
the PLA debit entry number/ RG23A Part -II/ RG23C Part-II debit entry number
through which the duty is paid on the said parent invoice, should be mentioned.
Such part invoices should be endorsed as "Part Invoices of Parent Invoice
No. ................. ".
4.6
Photocopy of the duplicate copy of parent invoice duly attested by the
authorised signatory of the Company shall accompany each conveyance.
4.7
Credit shall be taken only on receipt of parent invoice and the entire
consignment.
4.8
Other provisions of Central Excise Rules, 1944 regarding availment of
credit shall be applicable as usual.
5.
It is clarified that where the part consignments travelling in a convoy
or separately do not constitute "complete machinery" falling under a
single heading or sub-heading each such consignment will be classified on merits
say, as 'parts' and also a separate invoice showing the separate value arrived
at under section 4 of Central Excise Act, 1944 and the duty must accompany each
such consignment.
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