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Monthly payment of excise duty by SSI
Circular
No. 528 dated 3rd May 2000
It
is directed say that Rule 173 GG of the Central Excise Rules, 1944, which
provided for the special procedure for monthly payment of duty by manufacturers
availing of the exemption under a notification based on value of clearances in a
financial year (Small Scale Industries), has been omitted with effect from 1st
April, 2000. The modified provision relating to monthly payment of duty by the
Small Scale Industries has now been incorporated in rule 173G. it has therefore,
been decided to withdraw the Circular No. 458/24/99-CX dated 24th
May, 1999, (which was based on the erstwhile rule 173 GG) with effect from 1st
April, 2000.
2.
The trade interests and field formation may suitably be informed.
CENVAT
Rules
Dated:
5th May 2000
I
am directed to say that certain changes have been made in relation to the CENVAT
rules. These are contained in notification 37/2000-Central Excise (N.T) dated 3rd
May 2000. Copy of the notification is being sent separately. However, this can
be downloaded from the web site of the Ministry of Finance. The changes made are
highlighted below.
a.
CENVAT credit in respect of SED paid on goods falling under sub heading
Nos. 2404. 40 and 2404.50 has been allowed. Further, such credit can be taken by
an assessee in respect of these inputs received in his factory on or after the 1st
of March, 2000.
b.
Provision has been made to allow assesses to take credit of the amounts
debited by them when sending inputs to a job worker in accordance with the
provisions of the erstwhile rule 57F (4), and where such inputs have been
received back in the factory on or after the 1st of April 2000.
c.
In terms of the provisions of rule 57ACK, an assessee can avail credit in
respect of duty paid on capital goods to the extent of 50 per cent of such duty
in the financial year in which he receives the capital goods. The balance credit
may be taken in a subsequent financial year subject to the capital goods still
being in the use and possession of the assessee. It had been represented that
this condition could not be satisfied in respect of certain capital gods like
components, spares and accessories, grinding wheels, refractory materials. These
representations have been considered and rule 57AC has been amended to allow
credit in respect of the balance 50 per cent of the duty in respect of these
capital goods (namely, components, spares and accessories, refractories and
refractory materials and goods falling under heading 68.02 and sub-heading
6801.10) in a subsequent financial year without the condition of these goods
being in the use and possession of the assessee in the subsequent year. The
effect of this amendment would be that the assessee would avail credit of 50 per
cent of the duty paid on components, spares and accessories, refractories and
refractory materials and goods falling under heading 68.02 and sub-heading
6801.10 in the financial year in which he receives these goods in his factory;
the balance 50 per cent credit may be availed by him in a subsequent financial
year even if these goods have been used by him, and are no longer available in
such subsequent financial year. It would be pertinent to mention that if he
components, spare and accessories, refractories and refractory materials and
goods falling under heading 68.02 and sub-heading 6801.10 have been removed by
the assessee from his factory without being used, then the provisions of clause
(b) of sub-rule (1) of rule 57 AB would apply, and the assessee would be
required to pay duty on them accordingly. In such cases no credit would be
admissible in respect of the balance 50 per cent in the subsequent financial
years. This is subject to the condition that such goods are not sold without use
or after use before taking the second instalment of 50 per cent credit.
Illustration
1: An assessee receives certain components
in his factory on the 2nd of June 2000. The duty paid on these is
Rs. 10000. The assessee can take credit of Rs. 5000 on 2nd June
2000 itself. He then uses these components in his factory, and these get
completely used up by 1st December 2000. The assessee will still be
allowed to take credit of the balance Rs. 5000 on or after 1st
April, 2001.
Illustration-2:
An assessee receives certain components in his factory on the 2nd
of June 2000. The duty paid on these is Rs. 10000. The assessee can take
credit of Rs. 5000 on 2nd June 2000 itself. He does not, however,
use these components, and he removes them from his factory on 17th
September 2000. The assessee will be required to pay duty due on these
components when he clears them on 17th September. He will also not
be allowed to take credit of the balance Rs. 5000 because these goods have
been removed from his factory.
2.
Attention is also invited to notification 36/2000-CE (NT) dated 28th
April 2000. The form. The form of the monthly return required to be submitted by
assesses in terms of the provisions of rule57AE has been prescribed by assesses
in terms of the provisions of rule 57Ae has been prescribed by this
notification. It may be noted that this is a simple format, which has been
devised keeping in view the requirement of capturing the information on the
computer system of the department, so that the same could be used to exercise
meaningful control over the utilization CENVAT credit. It is envisaged that in
due course this monthly return may be merged with the RT-12 or any other monthly
return required to be filed by the assesses.
3.
The procedure for claiming refund of credit in respect of goods, which
have been exported, has been issued in terms of the new rule 57AC vide
notification 35/2000-Central Excise (N.T.) dated 28th April, 2000.
The procedure is otherwise the same as earlier contained in notification
85/87-CE(N>T) dated 1st March, 1987 issued under the erstwhile
rule 57F.
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