| Date: |
07-08-2002
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| Notification No: |
Central Excise Circular No 651/2002
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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: |
Regarding Cash Recovery of Money Credit Scheme- Applicability of Section 11D of the Central Excise Act, 1944
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Regarding Cash Recovery of Money Credit Scheme- Applicability of Section
11D of the Central Excise Act, 1944
Central
Excise Circular No. 651 dated 7th August 2002
I
am directed to invite reference to Board�s Circular 216/ 50/ 96 - CX dated
4.6.96 regarding applicability of Section 11D of Central Excise Act, 1944 to the
cases in which money credit has been availed and utilised for the payment of
duty on finished excisable products. It was directed not to take precipitative
action to enforce demands as the matter was under examination by Board.
2.
The matter has been examined. Board is of the view that Section 11D of
Central Excise Act, 1944, requires a person liable to pay duty to deposit any
amount collected in excess of the duty assessed or determined and paid on any
excisable goods from the buyer of the goods in any manner as representing duty
of excise. Therefore, in cases where duty collected has been deposited with the
Government, Section 11D shall not apply. This position shall not undergo any
change if the money credit available with the manufacturer is utilised to pay
duty on any finished excisable product and this duty is collected from the
buyer. Pending cases may be finalised accordingly.
3.
Trade and field formation may be informed suitably.
4.
Receipt of the same may be acknowledged.
5.
Hindi version shall follow.
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