Circular No. 565 dated 12^th January 2001

I am directed to enclose copy of Notification No.1/2001-Central Excise (N.T.) dated 11^th January 2001, whereby clause (e) of sub-rule (1) of rule 49 and clause (e) of sub-rule (1) of rule 173G have been amended. Instances have come to notice where certain Central Excise assessees did not pay substantial dues relating to earlier period even after being debarred for two months and were again eligible for the facility of fortnightly payment.

2.     In order to safeguard revenue, amendments have been made in the rules mentioned above so as to provide that in case where a manufacturer forfeits the facility to pay the dues in instalments on account of sub-clauses (i) & (ii) of clause (e) of sub-rule (1) of rule 49 and sub-clauses (i) & (ii) of clause (e) of sub-rule (1) of rule 173G, for a period of two months starting from the date of communication of an order passed by the proper officer in this regard, and if he still fails to make full payment of the outstanding amount before the end of this period, such manufacturer shall continue to forfeit the facility to pay the dues in instalments till the date all outstanding amounts are paid. For the sake of clarify, it is mentioned that where a manufacturer pays the outstanding amount before the end of the said two months� period, he can resume to avail the facility immediately after the completion of the two months period.

3.     The trade and field formations may suitably be informed.

4.     Receipt of the Circular may please be acknowledged.