Circular No. 617 dated 6th
February 2002
I
am directed to refer to Central Excise (Removal of Goods at Concessional rate
of Duty for Manufacture of Excisable Goods) Rules, 2001 and to say that some
formations have expressed the difficulty in implementing the said Rules in the
following situations stating that there are no corresponding provisions as in
the erstwhile Chapter X procedure of the Central Excise Rules, 1994:
i)� Removal of goods
received duty free to another unit without payment of duty; and
ii)������ Sending
goods received under these rules outside the factory for test, repair, refining
and re-conditioning and return thereof.
2.���� The
matter has been examined by the Board. It is accordingly clarified that goods
received duty free can be removed to another eligible manufacturer under the
Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture
of Excisable Goods) Rules, 2001. However, the recipient manufacturer would
require registration under Rule 3 of the said Rules.
3.���� As
regards sending goods outside the factory for test, repair, refining, and
re-conditioning and return thereof, Commissioner of Central Excise can allow
such movement by exercising the supplementary powers as contained in Rule 31 of
Central Excise (No. 2) Rules, 2001.
4.������ The field formations may suitably be
informed.
5.������ Receipt of this Circular may please be
acknowledged.