Central Excise Circular No. 629 dated 19^th March 2002

I am directed to state that there are a number of Government holidays in the last week of this month, which is also the last month of the Financial year 2002-2002. Furthermore, the last day of this month/ Financial Year i.e. 31.3.2002 happens to fall on a Sunday, on which day the Banks are normally closed. The field formations have reported that on account of this it is likely that the duty due this Financial Year may not get collected on time.

2.     The matter has been examined by the Board. In terms of rule 8 of the Central Excise Rules 2002, an assessee availing facility of fortnightly payment of duty has to deposit the duty for the second fortnight of March by 31^st day of the month. Further, as per explanation to the rule, duty liability is deemed to be discharged only when the amount payable is credited to the account of the Government by the specified date. Hence, duty is to be paid by 31.3.2002 and not on the last date of the month. Secondly, duty should be credit to the Government account by 31.3.2002. Thus, the assessees should ensure the duty is paid by 31.3.2002 otherwise the clearances would be treated as non-duty paid. Incidentally, last year it was provided that assessee would determine the duty for the last 5 days of the month (of March) on pro rata basis and pay the same by the 31^st day of the month. Hence, this year assessees should calculate their duty liability upto 31.3.2002 and credit it to the Government account by 31.3.2002.

3.     It is desired by the Board that suitable Trade Notices may be immediately issued alerting the Trade to the fact that 31.3.2002 falls on a Sunday and in view of provisions of rule 8 they must deposit (credit) the duty well in time, by 31.3.2002 (including for clearances on 31.3.2002).