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Regarding monthly payment of Central Excise Duty by Small Scale
industries - Instructions
Circular
No. 547 dated 11th September 2000
I
am directed to say that certain doubts have been raised as to mode of payment of
duty by a manufacture claiming to be in the small scale sector which may be
having one or more than one unit specially where he may be manufacturing branded
goods for others on job work basis in one or both of the units. It is pertinent
to note that where as for the rate of duty purposes, the value of clearances of
one or more units is clubbed under SSI exemption scheme (like Notification no.
9/1999-Central Excise prior to 1.3.2000 and Notification no. 9/2000-Central
Excise thereafter), in so far as mode of payment is concerned duty liability had
to be determined and discharged for production and clearances unit-wise, as per
the Central Excise Law, depending upon duty liability for clearances effected
from each unit. Thus, if for goods produced in the same unit, manufacturers
availed/ avail of the benefit of exemption under Notification No. 9/1999-Central
Excise prior to 1.3.2000 and Notification No. 9/2000-Central Excise and also
had/has to pay duty on branded goods manufactured for others at normal rates
outside the SSI exemption, then he would/will be eligible to discharge duty on
monthly payment basis for all the clearances effected from the same factory/
unit. Rule 173GG prior to 1.4.2000 (effective from 1st June, 1999) and rule
173G(1) thereafter, is attracted in this case and there is no intention to deny
the benefit of monthly payments (by 15th of the following month) to branded
goods cleared from the same unit.
2.
It may, however, be mentioned that if in any unit, which may also be
owned by small scale manufacturer, only branded goods for others are
manufactured on which normal rate of duty is payable, then benefit of Rule
173GG/173G(1) cannot be claimed as for that unit the manufacturer is not
availing of the exemption based upon value of clearances in a financial year.
Such manufacturing units should be treated at par with "other than SSI
units" and duty payment provisions applied accordingly.
3.
The Board desires that the Commissioners should carefully examine the
provisions made in the law and ensure proper implementation. Any difficulties
noticed should be intimated to the Board at the earliest.
4.
Receipt of this Circular may please be acknowledged.
5.
Trade and field formations may be suitably informed.
6.
Hindi version will follow.
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