| Date: |
01-07-2006
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| Notification No: |
Central Excise Draft Circular No /2006
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Allowance of maximum permissible error on net quantity by weight declared in packages of cement.
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As per Standards of Weights and Measures (packages) Rules, 1977 cement is required to be packed by electronic or mechanical automatic packaging machines in bags containing 50 Kgs.These automatic packaging machines are approved for the purposes of calibration by the authority mentioned in Standards of Weights and Measures Act, 1976. It has to be ensured that the bag is not less than 50Kgs. However, references have been received from the trade and industry stating that due to the very nature of the commodity and type of packing used, there may be cases of marginal variance of weight of cement in the bags. Therefore, they have requested for allowing maximum permissible error on net quantity by weight declared in packages of cement.
2. The matter has been examined. It is observed that while packing of cement, there may be cases of excess or short quantity packed in individual bags of cement. However, a manufacturer cannot afford to supply excess quantity of cement in all such bags and neither will buyers accept short quantity in all such bags. In other words, there are likely to be only few cases wherein such excess or short quantity has been supplied. But over a period of a time for instance one month, the total quantity supplied after due adjustment of the excess or shortage in each bag, should be more or less equal to the total quantity sold by a manufacturer. Therefore, keeping in view the said commercial practice, it has been decided that at the end of the month, the manufacturer shall calculate the net variation in total quantity actually delivered in a month and the quantity on which duty has been paid and if the net quantity delivered (after adjusting the excess and shortages in each individual bag) is more, he should then pay duty on the said excess quantity. Records of actual weighment of bags such as weighment slip, production records etc. should be maintained by the manufacturer so as to enable verification at the time of audit or other checks. It is also clarified that if duty is not paid on the said excess quantity along with the monthly duty liability, then interest as applicable is liable to be paid. The said excess quantity on which duty is paid shall also be reflected in the monthly returns being filed by the manufacturer.
3. Trade & field formations may please be informed suitably.
4. Receipt of the Circular may be acknowledged.
5. Hindi version will follow.
F.No. 224/39/04-CX-6
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