Central Excise Rules, CBEC

3/9/2015 CentralExciseRules,CBEC

http://www.cbec.gov.in/excise/cxrules2002.htm 1/16

CentralExcise,Rules,2002

[NotificationNo.4/2002C.E.(N.T.),dated132002AmendedbyNotificationNo.06/2003C.E.(N.T.),dated11022003NotificationNo.12/2003C.E.(N.T.),dated01032003NotificationNo.17/2003C.E.(N.T.),dated13032003NotificationNo.24/2003C.E.(N.T.),dated25032003NotificationNo.33/2003C.E.(N.T.),dated10042003NotificationNo.48/2003C.E.(N.T.),dated17052003NotificationNo.69/2003C.E.(N.T.),dated15092003NotificationNo.01/2004C.E.(N.T.),dated08012004NotificationNo.11/2004C.E.(N.T.),dated09072004NotificationNo.18/2004C.E.(N.T.),dated06092004NotificationNo.27/2004C.E.(N.T.),dated28092004NotificationNo.34/2004C.E.(N.T.),dated01112004NotificationNo.07/2005C.E.(N.T.),dated24022005NotificationNo.12/2005C.E.(N.T.),dated01032005NotificationNo.17/2005C.E.(N.T.),dated31032005NotificationNo.13/2006C.E.(N.T.),dated01062006NotificationNo.18/2006C.E.(N.T.),dated30092006NotificationNo.26/2006C.E.(N.T.),dated28122006NotificationNo.30/2006C.E.(N.T.),dated30122006NotificationNo.03/2007C.E.(N.T.),dated08022007NotificationNo.08/2007C.E.(N.T.),dated01032007NotificationNo.34/2007C.E.(N.T.),dated11092007NotificationNo.36/2007C.E.(N.T.),dated14092007NotificationNo.08/2007C.E.(N.T.),dated01032007NotificationNo.03/2008C.E.(N.T.),dated18012008NotificationNo.07/2008C.E.(N.T.),dated25012008NotificationNo.23/2008C.E.(N.T.),dated23052008

Inexerciseofthepowersconferredbysection37oftheCentralExciseAct,1944(1of1944)andinsupersessionoftheCentralExcise(No.2)Rules,2001,exceptasrespectsthingsdoneoromittedtobedonebeforesuchsupersession,theCentralGovernmentherebymakesthefollowingrules,namely:RULE1.Shorttitle,extentandcommencement.(1)TheserulesmaybecalledtheCentralExciseRules,2002.

(2)TheyextendtothewholeofIndia.

(3)Theyshallcomeintoforceonthe1stdayofMarch,2002.



RULE2.Definitions.Intheserules,unlessthecontextotherwiserequires,

(a)ActmeanstheCentralExciseAct,1944(1of1944)

(b)assessmentincludesselfassessmentofdutymadebytheassesseeandprovisionalassessmentunderrule7

(c)assesseemeansanypersonwhoisliableforpaymentofdutyassessedoraproducerormanufacturerofexcisablegoodsoraregisteredpersonofaprivatewarehouseinwhichexcisablegoodsarestoredandincludesanauthorizedagentofsuchperson

(d)BoardmeanstheCentralBoardofExciseandCustomsconstitutedundertheCentralBoardofRevenueAct,1963(54of1963)

(e)dutymeansthedutypayableundersection3oftheAct

(ea)largetaxpayermeansapersonwho,

(i)hasoneormoreregisteredpremisesundertheCentralExciseAct,1944(1of1944)or

(ii)hasoneormoreregisteredpremisesunderChapterVoftheFinanceAct,1994(32of1994)

andisanassesseeundertheIncomeTaxAct,1961(43of1961),whoholdsaPermanentAccountNumberissuedundersection139AofthesaidAct,andsatisfiestheconditionsandobservestheproceduresasnotifiedbytheCentralGovernmentinthisregard.]

(f)notificationmeansthenotificationpublishedintheOfficialGazette

(g)TariffActmeanstheCentralExciseTariffAct,1985(5of1986)

(h)warehousemeansanyplaceorpremisesregisteredunderrule9and

(i)wordsandexpressionsusedhereinbutnotdefinedanddefinedintheActshallhavethemeaningsrespectivelyassignedtothemintheAct.

RULE3.AppointmentandjurisdictionofCentralExciseOfficers.(1)TheBoardmay,bynotification,appointsuchpersonasitthinksfittobeCentralExciseOfficertoexercisealloranyofthepowersconferredbyorundertheActandtheserules.

(2)TheBoardmay,bynotification,specifythejurisdictionofaChiefCommissionerofCentralExcise,CommissionerofCentralExciseorCommissionerofCentralExcise(Appeals)forthepurposesoftheActandtherulesmadethereunder.

(3)AnyCentralExciseOfficermayexercisethepowersanddischargethedutiesconferredorimposedbyorundertheActortheserulesonanyotherCentralExciseOfficerwhoissubordinatetohim.

RULE4.Dutypayableonremoval.(1)Everypersonwhoproducesormanufacturesanyexcisablegoods,orwhostoressuchgoodsinawarehouse,shallpaythedutyleviableonsuchgoodsinthemannerprovidedinrule8orunderanyotherlaw,andnoexcisablegoods,onwhichanydutyispayable,shallberemovedwithoutpaymentofdutyfromanyplace,wheretheyareproducedormanufactured,orfromawarehouse,unlessotherwiseprovided:

[***]

(2)Notwithstandinganythingcontainedinsubrule(1),wheremolassesareproducedinakhandsarisugarfactory,thepersonwhoprocuressuchmolasses,whetherdirectlyfromsuchfactoryorotherwise,foruseinthemanufactureofanycommodity,whetherornotexcisable,shallpaythedutyleviableonsuchmolasses,inthesamemannerasifsuchmolasseshavebeenproducedbytheprocurer.

[(3)***]



(4)Notwithstandinganythingcontainedinsubrule(1),Commissionermay,inexceptionalcircumstanceshavingregardtothenatureofthegoodsandshortageofstoragespaceatthepremisesofthemanufacturerwherethegoodsaremade,permitamanufacturertostorehisgoodsinanyotherplaceoutsidesuchpremises,withoutpaymentofdutysubjecttosuchconditionsashemayspecify.

RULE5.Datefordeterminationofdutyandtariffvaluation.(1)Therateofdutyortariffvalueapplicabletoanyexcisablegoods,otherthankhandsarimolasses,shallbetherateorvalueinforceonthedatewhensuchgoodsareremovedfromafactoryorawarehouse,asthecasemaybe.

(2)Therateofdutyinthecaseofkhandsarimolasses,shallbetherateinforceonthedateofreceiptofsuchmolassesinthefactoryoftheprocurerofsuchmolasses.

Explanation.Ifanyexcisablegoodsareusedwithinthefactory,thedateofremovalofsuchgoodsshallmeanthedateonwhichthegoodsareissuedforsuchuse.

[(3)***]

RULE6.Assessmentofduty.Theassesseeshallhimselfassessthedutypayableonanyexcisablegoods:

Providedthatincaseofcigarettes,theSuperintendentorInspectorofCentralExciseshallassessthedutypayablebeforeremovalbytheassessee.

RULE7.Provisionalassessment.(1)Wheretheassesseeisunabletodeterminethevalueofexcisablegoodsordeterminetherateofdutyapplicablethereto,hemayrequesttheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,inwritinggivingreasonsforpaymentofdutyonprovisionalbasisandtheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,mayorderallowingpaymentofdutyonprovisionalbasisatsuchrateoronsuchvalueasmaybespecifiedbyhim.

(2)Thepaymentofdutyonprovisionalbasismaybeallowed,iftheassesseeexecutesabondintheformprescribedbynotificationbytheBoardwithsuchsuretyorsecurityinsuchamountastheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,deemfit,bindingtheassesseeforpaymentofdifferencebetweentheamountofdutyasmaybefinallyassessedandtheamountofdutyprovisionallyassessed.

(3)TheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,shallpassorderforfinalassessment,assoonasmaybe,aftertherelevantinformation,asmayberequiredforfinalizingtheassessment,isavailable,butwithinaperiodnotexceedingsixmonthsfromthedateofthecommunicationoftheorderissuedundersubrule(1):

Providedthattheperiodspecifiedinthissubrulemay,onsufficientcausebeingshownandthereasonstoberecordedinwriting,beextendedbytheCommissionerofCentralExciseforafurtherperiodnotexceedingsixmonthsandbytheChiefCommissionerofCentralExciseforsuchfurtherperiodashemaydeemfit.

(4)TheassesseeshallbeliabletopayinterestonanyamountpayabletoCentralGovernment,consequenttoorderforfinalassessmentundersubrule(3),attheratespecifiedbytheCentralGovernmentbynotificationissuedundersection11AAorsection11ABoftheActfromthefirstdayofthemonthsucceedingthemonthforwhichsuchamountisdetermined,tillthedateofpaymentthereof.

(5)Wheretheassesseeisentitledtoarefundconsequenttoorderforfinalassessmentundersubrule(3),subjecttosubrule(6),thereshallbepaidaninterestonsuchrefundattheratespecifiedbytheCentralGovernmentbynotificationissuedundersection11BBoftheActfromthefirstdayofthemonthsucceedingthemonthforwhichsuchrefundisdetermined,tillthedateofrefund.

(6)Anyamountofrefunddeterminedundersubrule(3)shallbecreditedtotheFund:

Providedthattheamountofrefund,insteadofbeingcreditedtotheFund,bepaidtotheapplicant,ifsuchamountisrelatableto

(a)thedutyofexcisepaidbythemanufacturer,ifhehadnotpassedontheincidenceofsuchdutytoanyother



personor

(b)thedutyofexcisebornebythebuyer,ifhehadnotpassedontheincidenceofsuchdutytoanyotherperson.

RULE8.Mannerofpayment.(1)Thedutyonthegoodsremovedfromthefactoryorthewarehouseduringamonthshallbepaidby[the6thdayofthefollowingmonth,ifthedutyispaidelectronicallythroughinternetbankingandbythe5thdayofthefollowingmonth,inanyothercase]:ProvidedthatincaseofgoodsremovedduringthemonthofMarch,thedutyshallbepaidbythe31stdayofMarch:Providedfurtherthatwhereanassesseeisavailingoftheexemptionunderanotificationbasedonthevalueofclearancesinafinancialyear,thedutyongoodsclearedduringacalendarmonthshallbepaidby[the16thdayofthefollowingmonth,ifthedutyispaidelectronicallythroughinternetbankingandbythe15thdayofthefollowingmonth,inanyothercase,]exceptincaseofgoodsremovedduringthemonthofMarchforwhichthedutyshallbepaidbythe31stdayofMarch.Providedalsothatanassessee,whohaspaiddutyoffiftylakhsrupeesormore,otherthantheamountofdutypaidbyutilizationofCENVATcredit,intheprecedingfinancialyear,shallthereafter,depositthedutyelectronicallythroughinternetbanking.Explanation.Forthepurposesofthisrule,

(a)thedutyliabilityshallbedeemedtohavebeendischargedonlyiftheamountpayableiscreditedtotheaccountoftheCentralGovernmentbythespecifieddate(b)iftheassesseedepositsthedutybycheque,thedateofpresentationofthechequeinthebankdesignatedbytheCentralBoardofExciseandCustomsforthispurposeshallbedeemedtobethedateonwhichthedutyhasbeenpaidsubjecttorealizationofthatcheque.

(1A)Notwithstandinganythingcontainedinsubrule(1),thedutyonthegoodsremovedfromthefactoryorthewarehouse,intheStateofGujarat,duringthesecondfortnightofFebruary,2002andthemonthofMarch,2002shallbepaidbythe31stMarch,2002:ProvidedthatwhereanassesseeintheStateofGujaratisavailingoftheexemptionunderanotificationbasedonthevalueofclearancesinafinancialyear,thedutyongoodsclearedduringthemonthofFebruary,2002shallbepaidbythe31stMarch,2002.Explanation.Forremovalofdoubts,itisherebyclarifiedthatthedutyliabilityshallbedeemedtohavebeendischargedonlyiftheamountpayableiscreditedtotheaccountoftheCentralGovernmentbythespecifieddate.(2)Thedutyofexciseshallbedeemedtohavebeenpaidforthepurposesoftheserulesontheexcisablegoodsremovedinthemannerprovidedundersubrule(1)andthecreditofsuchdutyallowed,asprovidedbyorunderanyrule.[(3)Iftheassesseefailstopaytheamountofdutybyduedate,heshallbeliabletopaytheoutstandingamountalongwithinterestattheratespecifiedbytheCentralGovernmentvidenotificationundersection11ABoftheActontheoutstandingamount,fortheperiodstartingwiththefirstdayafterduedatetillthedateofactualpaymentoftheoutstandingamount.[(3A)Iftheassesseedefaultsinpaymentofdutybeyondthirtydaysfromtheduedate,asprescribedinsubrule(1),thennotwithstandinganythingcontainedinsaidsubrule(1)andsubrule(4)ofrule3ofCENVATCreditRules,2004,theassesseeshall,payexcisedutyforeachconsignmentatthetimeofremoval,withoututilizingtheCENVATcredittillthedatetheassesseepaystheoutstandingamountincludinginterestthereonandintheeventofanyfailure,itshallbedeemedthatsuchgoodshavebeenclearedwithoutpaymentofdutyandtheconsequencesandpenaltiesasprovidedintheserulesshallfollow.[(4)Theprovisionsofsection11oftheActshallbeapplicableforrecoveryofthedutyasassessedunderrule6and



theinterestundersubrule(3)inthesamemannerastheyareapplicableforrecoveryofanydutyorothersumspayabletotheCentralGovernment.

Explanation.Forthepurposesofthisrule,theexpressionsdutyordutyofexciseshallalsoincludetheamountpayableintermsoftheCENVATCreditRules,2004.

RULE8A.Mannerofpaymentinrespectofspecifiedgoodsonwhichexcisedutyhasbeenimposedwitheffectfrom1stMarch,2002.(1)Notwithstandinganythingcontainedinrule8,thedutyonthegoods,specifiedintheAnnexuretothisrule,removedfromthefactoryorthewarehouseduringtheperiodcommencingonandfromthe1stMarch,2002andendingwithandincludingthe31stMay,2002,shallbepaidbythe15thdayofJune,2002.

Explanation.Forremovalofdoubts,itisherebyclarifiedthatthedutyliabilityshallbedeemedtohavebeendischargedonlyiftheamountpayableiscreditedtotheaccountoftheCentralGovernmentbythespecifieddate.

(2)Thedutyofexciseshallbedeemedtohavebeenpaidforthepurposesoftheserulesontheexcisablegoodsremovedinthemannerprovidedundersubrule(1)andthecreditofsuchdutyallowed,asprovidedbyorunderanyrule.

(3)Iftheassesseefailstopaytheamountofdutybyduedate,heshallbeliabletopaytheoutstandingamountalongwithinterestattheratespecifiedbytheCentralGovernmentvidenotificationissuedundersection11ABoftheActontheoutstandingamount,fortheperiodstartingwiththefirstdayafterduedatetillthedateofactualpaymentoftheoutstandingamount.

(4)Iftheassesseedefaultsinpaymentofdutybythe15thdayofJune,2002,then,theassesseeshallforfeitthefacilitytopaytheduesininstalmentsasprovidedundersubrule(1)ofrule8fortheclearancesmadeafterthe1stdayofJune,2002foraperiodoftwomonths,commencingonandfromthedateofcommunicationoftheorderpassedbytheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,inthisregard,ortillsuchdateonwhichtheduesarepaid,whicheverislater,andduringthisperiodtheassesseeshallberequiredtopayexcisedutyforeachconsignmentbydebitingtotheaccountcurrentandintheeventofanyfailuretodoso,itshallbedeemedthatsuchgoodshavebeenclearedwithoutpaymentofdutyandtheconsequencesandpenaltiesasprovidedintheserules,shallfollow.

Annexure

(1)AllgoodsspecifiedatS.Nos.9to50oftheTabletothenotificationoftheGovernmentofIndia,MinistryofFinance(DepartmentofRevenue)No.10/2002CentralExcise,datedthe1stMarch,2002publishedintheGazetteofIndiavidenumberG.S.R.131(E),datedthe1stMarch,2002,whichwereexemptfromwholeofthedutyleviablethereonimmediatelypriorto1stMarch,2002andonwhichdutyhasbecomeleviablewitheffectfrom1stMarch,2002,attherateof4%advalorem,subjecttotheconditionsspecifiedinthatnotificationor,asthecasemaybe,attherateof16%advalorem.

(2)GranitefallingunderheadingNo.68.07manufacturedbyunitswhichwouldhavebeeneligibleforexemptionfromdutywhetherinwholeorinpartundernotificationNo.8/2001CentralExciseorNo.9/2001CentralExcise,datedthe1stMarch,2001,astheyexistedbefore1stMarch,2002andgranitefallingunderheadingNo.68.07manufacturedbyunitswhichwouldhavebeeneligibleforexemptionwhetherinwholeorinpartifsuchexemptionhadnotbeenwithdrawnunderNotificationNo.8/2002CentralExciseor,asthecasemaybe,underNotificationNo.9/2002CentralExcise,bothdatedthe1stMarch,2002.

(3)Wovenfabricsofcotton,fallingunderChapter52,whensubjectedtoanyoneormoreofthefollowingprocesses,namely:

(a)flanelleteraising

(b)stentering

(c)dampingongreyandbleachedsorts

(d)backfillingongreyandbleachedsorts



(e)singeing,thatistosay,burningawayofknotsandlooseendsinthefabrics

(f)croppingorbuttacutting

(g)curingorheatsetting

(h)padding,thatistosay,applyingstarchorfattymaterialononeorbothsidesofthefabricor

(i)expanding,

if such fabrics are processed in a factory which does not have the facilities (including plant and equipment) forcarryingoutbleaching,dyeingorprintingoranyoneormoreoftheseprocesseswiththeaidofpowerorsteamandsuch fabricswereexempt fromwholeof theduties leviable thereonunder theFirstSchedule to theCentralExciseTariffAct,1985(5of1986)andtheFirstScheduletotheAdditionalDutiesofExcise(GoodsofSpecialImportance)Act,1957(58of1957),immediatelyprior to1stMarch,2002andonwhichdutieshavebecomeleviablewitheffectfrom1stMarch,2002attherateof12%advalorem.

(4)Wovenfabricsofmanmadefibres,fallingunderChapter54orChapter55,whensubjectedtoanyoneormoreofthefollowingprocesses,namely:

(a)singeing,thatistosay,burningawayofknotsandlooseendsinthefabrics

(b)padding,thatistosay,applicationofnaturalstarchtooneorbothsidesofthefabrics

(c)backfilling,thatistosay,applicationofstarchtoonesideofthefabrics

(d)cropping,thatistosay,cuttingawaymechanicallyoflooseendsfromthefabricsor

(e)theprocessofblowing(steampressing)carriedoutonwovenfabricsofacrylicfibre,

if such fabrics are processed in a factory which does not have the facilities (including plant and equipment) forcarryingoutbleaching,dyeingorprintingoranyoneormoreoftheseprocesseswiththeaidofpowerorsteam,andsuch fabricswereexempt fromwholeof theduties leviable thereonunder theFirstSchedule to theCentralExciseTariffAct,1985(5of1986)andtheFirstScheduletotheAdditionalDutiesofExcise(GoodsofSpecialImportance)Act,1957(58of1957), immediatelypriorto1stMarch,2002andonwhichdutieshavebecome leviablewitheffectfrom1stMarch,2002,attherateof12%advalorem.]

RULE9.Registration.(1)Everyperson,whoproduces,manufactures,carriesontrade,holdsprivatestoreroomorwarehouseorotherwiseusesexcisablegoods,shallgetregistered:

Providedthataregistrationobtainedunderrule174oftheCentralExciseRules,1944orrule9oftheCentralExcise(No.2)Rules,2001shallbedeemedtobeasvalidastheregistrationmadeunderthissubruleforthepurposeoftheserules.

(2)TheBoardmaybynotificationandsubjecttosuchconditionsorlimitationsasmaybespecifiedinsuchnotification,specifypersonorclassofpersonswhomaynotrequiresuchregistration.

(3)Theregistrationundersubrule(1)shallbesubjecttosuchconditions,safeguardsandprocedureasmaybespecifiedbynotificationbytheBoard.

RULE10.Dailystockaccount.(1)Everyassesseeshallmaintainproperrecords,onadailybasis,inalegiblemannerindicatingtheparticularsregardingdescriptionofthegoodsproducedormanufactured,openingbalance,quantityproducedormanufactured,inventoryofgoods,quantityremoved,assessablevalue,theamountofdutypayableandparticularsregardingamountofdutyactuallypaid.

(2)Thefirstpageandthelastpageofeachsuchaccountbookshallbedulyauthenticatedbytheproducerorthemanufacturerorhisauthorisedagent.

(3)Allsuchrecordsshallbepreservedforaperiodoffiveyearsimmediatelyafterthefinancialyeartowhichsuchrecordspertain.



RULE11.Goodstoberemovedoninvoice.(1)Noexcisablegoodsshallberemovedfromafactoryorawarehouseexceptunderaninvoicesignedbytheownerofthefactoryorhisauthorizedagentandinthecaseofcigarettes,eachsuchinvoiceshallalsobecountersignedbytheInspectorofCentralExciseortheSuperintendentofCentralExcisebeforethecigarettesareremovedfromthefactory.

[ProvidedthatamanufacturerofyarnsorfabricsfallingunderChapter50,51,52,53,54,55,58or60orreadymadegarmentsfallingunderChapter61or62ofFirstScheduletotheTariffActmayremovethesaidgoodsunderaproformainvoicesignedbyhimorhisauthorisedagent.Theprovisionsofsubrules(2)to(5)shallapplytotheproformainvoiceexceptthatthesaidinvoiceshallnotcontainthedetailsofthedutypayable.Themanufacturershall,withinfiveworkingdaysfromtheissuanceoftheproformainvoicepreparetheinvoiceintermsofthisruleaftermakingadjustmentsinrespectofthegoodsrejectedandreturnedbythebuyer.Theproformainvoiceandtheinvoiceissuedintermsofthissubruleshallhavecrossreferencetoeachotherbywayoftheirserialnumbers.]

[Providedfurtherthatthesaidperiodoffiveworkingdays,asreferredtointhefirstproviso,maybeextendeduptoaperiodnotexceedingtwentyonedays,inclusiveofthesaidperiodoffiveworkingdays,bytheCommissionerofCentralExcise,onreceiptofarequestfromthesaidmanufacturer.]

[(2)Theinvoiceshallbeseriallynumberedand[shallcontaintheregistrationnumber,addressoftheconcernedCentralExciseDivision,]nameoftheconsignee,description,classification,timeanddateofremoval,modeoftransportandvehicleregistrationnumber,rateofduty,quantityandvalue,ofgoodsandthedutypayablethereon.]

[ProvidedthatincaseofaproprietaryconcernorabusinessownedbyHinduUndividedFamily,thenameoftheproprietororHinduUndividedFamily,asthecasemaybe,shallalsobementionedintheinvoice.]

(3)Theinvoiceshallbepreparedintriplicateinthefollowingmanner,namely:

(i)theoriginalcopybeingmarkedasORIGINALFORBUYER

(ii)theduplicatecopybeingmarkedasDUPLICATEFORTRANSPORTER

(iii)thetriplicatecopybeingmarkedasTRIPLICATEFORASSESSEE.

(4)Onlyonecopyofinvoicebookshallbeinuseatatime,unlessotherwiseallowedbytheAssistantCommissionerofCentralExcise,ortheDeputyCommissionerofCentralExcise,asthecasemaybe,inthespecialfactsandcircumstancesofeachcase.

(5)TheownerorworkingpartnerortheManagingDirectorortheCompanySecretaryoranypersondulyauthorisedforthispurposeshallauthenticateeachfoiloftheinvoicebook,beforebeingbroughtintouse.

(6)Beforemakinguseoftheinvoicebook,theserialnumbersofthesameshallbeintimatedtotheSuperintendentofCentralExcisehavingjurisdiction.

(7)Theprovisionsofthisruleshallapplymutatismutandistogoodssuppliedbyafirststagedealerorasecondstagedealer:

[Providedthatincaseofthefirststagedealerreceivingimportedgoodsunderaninvoicebearinganindicationthatthecreditofadditionaldutyofcustomsleviedonthesaidgoodsundersubsection(5)ofsection3oftheCustomsTariffAct,1975(51of1975)shallnotbeadmissible,thesaiddealershallontheresaleofthesaidimportedgoods,indicateontheinvoiceissuedbyhimthatnocreditoftheadditionaldutyleviedundersubsection(5)ofsection3oftheCustomsTariffAct,1975shallbeadmissible

Providedfurtherthatincaseofthesecondstagedealerreceivingimportedgoodsunderaninvoicebearinganindicationthatthecreditofadditionaldutyofcustomsleviedonthesaidgoodsundersubsection(5)ofsection3oftheCustomsTariffAct,1975(51of1975)shallnotbeadmissible,thesaiddealershallontheresaleofsuchimportedgoods,indicateontheinvoiceissuedbyhimthatnocreditoftheadditionaldutyleviedundersubsection(5)ofsection3oftheCustomsTariffAct,1975shallbeadmissible.]

Explanation.Forthepurposesofthisrule,firststagedealerandsecondstagedealershallhavethemeaningsassignedtotheminCENVATCreditRules,2002.

RULE12.Filingofreturn.[(1)]EveryassesseeshallsubmittotheSuperintendentofCentralExciseamonthlyreturnintheformspecifiedbynotificationbytheBoard,ofproductionandremovalofgoodsandotherrelevant



particulars,withintendaysafterthecloseofthemonthtowhichthereturnrelates:

[Providedthatanassessee,manufacturingpanmasalafallingundertariffitem21069020orpanmasalacontainingtobaccofallingundertariffitem24039990,shallalsofile,alongwiththereturn,forthemonthtowhichthesaidreturnrelates,astatementsummarizing,

(i)thepurchaseinvoicesforthemonthwiththenamesandaddressesofthesuppliersofbetelnut,tobaccoandpackingmaterialalongwiththequantityofthesaidgoodspurchasedand

(ii)thesalesinvoicesforthemonthwiththenamesandaddressesofthebuyers,description,quantityandvalueofgoodssoldbytheassessee.

Explanation.Whenthegoodsarenotsoldfromthefactory,theaddressofthepremisestowhichthegoodsaredispatchedfromthefactoryshallalsobeprovided:]

[Providedfurtherthatwhereanassesseeis,

(a)availingtheexemptionunderanotificationbasedonvalueofclearancesinafinancialyearor

(b)manufacturingprocessedyarn,unprocessedfabricsfallingunderChapter50,51,52,53,54,55,58or60ofFirstScheduletotheTariffActor

(c)manufacturingreadymadegarmentsfallingunderChapter61or62ofFirstScheduletotheTariffAct,whichpriorto1stdayofApril,2003wereeligibleforanexemptionunderanotificationbasedonvalueofclearancesinafinancialyear,

heshallfileaquarterlyreturnintheformspecifiedbynotificationbytheBoard,ofproductionandremovalofgoodsandotherrelevantparticulars,withintwentydaysafterthecloseofthequartertowhichthereturnrelates.]

[Providedalsothat,whereanassesseeisavailingtheexemptionnotificationoftheGovernmentofIndia,MinistryofFinance(DepartmentofRevenue)No.49/2003CentralExcise,datedthe10thJune,2003videnumberG.S.R.471(E),publishedintheGazetteofIndia,Extraordinary,PartII,section3,subsection(i)datedthe10thJune,2003orNo.50/2003CentralExcise,datedthe10thJune,2003videnumberG.S.R.472(E),publishedintheGazetteofIndia,Extraordinary,PartII,section3,subsection(i),datedthe10thJune,2003,heshallfileaquarterlyreturnwiththejurisdictionalCommissionerofCentralExcise,intheformspecifiedbynotificationbytheBoard,ofproductionandremovalofgoodsandotherrelevantparticulars,withintwentydaysafterthecloseofthequartertowhichthereturnrelatesandincaseofgoodsproducedandremovedduringthequarterendingonthe31stdayofDecember,2007,suchreturnshallbesubmittedbythe20thFebruary,2008.]

[(2)(a)Notwithstandinganythingcontaininginsubrule(1),everyassesseeshallsubmittotheSuperintendentofCentralExcise,anAnnualFinancialInformationStatementfortheprecedingfinancialyeartowhichthestatementrelatesintheformspecifiedbynotificationbytheBoardby30thdayofNovemberofthesucceedingyear.

(b)TheCentralGovernmentmay,bynotification,andsubjecttosuchconditionsorlimitationsasmaybespecifiedinsuchnotification,specifyassesseeorclassofassesseeswhomaynotrequiretosubmitsuchanAnnualFinancialInformationStatement.]

[(3)Theproperofficermayonthebasisofinformationcontainedinthereturnfiledbytheassesseeundersubrule(1),andaftersuchfurtherenquiryashemayconsidernecessary,scrutinizethecorrectnessofthedutyassessedbytheassesseeonthegoodsremoved,inthemannertobeprescribedbytheBoard.

(4)Everyassesseeshallmakeavailabletotheproperofficerallthedocumentsandrecordsforverificationasandwhenrequiredbysuchofficer.]

RULE12A.Filingofreturninrespectofspecifiedgoodsonwhichexcisedutyhasbeenimposedonandfromthe1stMarch,2002.Notwithstandinganythingcontainedinrule12,everyassesseeshallsubmit,inrespectofgoodsspecifiedintheAnnexuretorule8A,totheSuperintendentofCentralExciseareturnforthemonthsofMarch,AprilandMay,2002,intheformspecifiedbynotificationbytheBoard,ofproductionandremovalofthesaidgoodsandotherrelevantparticulars,bythe10thdayofJune,2002.]

RULE12AA.Jobworkinarticleofjewellery.(1)Notwithstandinganythingcontainedintheserules,everyperson(notbeinganexportorientedunitoraunitlocatedinspecialeconomiczone)whogetsarticleofjewelleryfall



ingunderheading7113oftheFirstScheduletotheCentralExciseTariffAct,1985(5of1986)(hereinafterreferredtoastheTariffAct),producedormanufacturedonhisbehalf,onjobworkbasis,(hereinafterreferredtoasthesaidperson)shallobtainregistration,maintainaccounts,paydutyleviableonsuchgoodsandcomplywithalltherelevantprovisionsoftheserules,asifheisanassessee:

Providedthatthejobworkermay,athisoption,agreetoobtainregistration,maintainaccounts,paythedutyleviableonsuchgoods,preparetheinvoiceandcomplywiththeotherprovisionsoftheserulesandinsuchacasetheprovisionsoftheserulesshallnotapplytothesaidperson.

(2)Ifthesaidpersondesiresclearanceofexcisablegoodsforhomeconsumptionorforexportsfromthepremisesofthejobworker,heshallpaydutyonsuchexcisablegoodsandprepareaninvoice,inthemannerreferredtoinrules8and11respectivelyexceptformentioningthedateandtimeofremovalofgoodsonsuchinvoice.

(3)Theoriginalandtheduplicatecopyoftheinvoicesopreparedshallbesentbyhimtothejobworkerfromwhosepremisestheexcisablegoodsaftercompletionofjobworkareintendedtobecleared,beforethegoodsareclearedfromthepremisesofthejobworker.

(4)Thejobworkershallfilluptheparticularsofdateandtimeofremovalofgoodsbeforetheclearanceofgoodsandaftersuchclearancethejobworkershallintimatetothesaidperson,thedateandtimeoftheclearanceofgoodsforcompletionoftheparticularsbythesaidpersoninthetriplicatecopyoftheinvoice.

(5)Thesaidpersonmaysupplyorcausetosupplytoajobworker,thefollowinggoods,namely:

(a)inputsinrespectofwhichhemayormaynothaveavailedCENVATcreditintermsoftheCENVATCreditRules,2004,withoutreversalofthecreditthereonor

(b)goodsmanufacturedinthefactoryofthesaidpersonwithoutpaymentofduty

underachallan,consignmentnoteoranyotherdocument(hereinreferredtoasdocument)withsuchinformationasspecifiedinsubrule(2)ofrule11oftheCentralExciseRules,2002,dulysignedbyhimorhisauthorisedagent.

(6)Theresponsibilityinrespectofaccountabilityofthegoods,referredtoinsubrule(5)shalllieonthesaidperson.

(7)Notwithstandinganythingcontainedintheserules,thejobworkershallnotberequiredtogethimselfregisteredorshallnotberequiredtomaintainanyrecordevidencingtheprocessesundertakenforthesolepurposesofundertakingjobworkundertheserulesunlesshehasexercisedhisoptionintermsoftheprovisotosubrule(1).

(8)Thejobworker,withorwithoutcompletingthejobworkmay,

(i)returnthegoodswithoutpaymentofdutytothesaidpersonor

(ii)clearthegoodsforhomeconsumptionorforexports

subjecttoreceiptofaninvoicefromthesaidperson,asmentionedinsubrule(4).

(9)Thejobworkershallclearthegoodsafterfillingininvoicethetimeanddateofremovalandauthenticationofsuchdetails.Therateofdutyonsuchgoodsshallbetherateinforceondateofremovalofsuchgoodsfromthepremisesofthejobworkerandnoexcisablegoodsshallberemovedexceptundertheinvoice.

Explanation1.Forthepurposeofthisrule,jobworkermeansapersonengagedinmanufactureorprocessingonbehalfandundertheinstructionsofthesaidpersonfromanyinputsorgoodssuppliedbythesaidpersonorbyanyotherpersonauthorizedbythesaidperson,soastocompleteapartorwholeoftheprocessresultingultimatelyinmanufactureofarticlesofjewelleryfallingunderheading7113oftheFirstScheduletotheCentralExciseTariffAct,1985,andthetermjobworkshallbeconstruedaccordingly.

Explanation2.Forthepurposesofthisrule,articleofjewelleryshallmeanarticlesofjewelleryonwhichbrandnameortradenameisindeliblyaffixedorembossedonitself.

Explanation3.Forthepurposesofthisnotification,brandnameortradenamemeansabrandnameortradename,whetherregisteredornot,thatistosay,anameoramark,suchasasymbol,monogram,label,signatureorinventedwordsoranywritingwhichisusedinrelationtoaproduct,forthepurposeofindicating,orsoastoindicate,



aconnectioninthecourseoftradebetweentheproductandsomepersonusingsuchnameormarkwithorwithoutanyindicationoftheidentityofthatperson.

Explanation4.Fortheremovalofdoubts,itisherebyclarifiedthatifanygoodsorpartthereofislost,destroyed,foundshortatanytimebeforetheclearanceofarticlesofjewelleryfallingunderheading7113oftheFirstScheduletotheTariffActorwaste,byproductsorlikegoodsarisingduringthecourseofmanufactureofsuchgoods,thesaidpersonshallbeliabletopaydutythereonasifsuchgoodswereclearedforhomeconsumption.]

RULE[12B.***]

RULE12BB.Procedureandfacilitiesforlargetaxpayer.Notwithstandinganythingcontainedintheserules,thefollowingprocedureshallapplytoalargetaxpayer.(1)Alargetaxpayermayremoveexcisablegoods,exceptmotorspirit,commonlyknownaspetrol,highspeeddieselandlightdieseloil(hereinafterreferredtoastheintermediategoods),withoutpaymentofdutiesofexcise,underthecoverofatransferchallanorinvoice,fromanyofhisregisteredpremises,(hereinafterreferredtoasthesenderpremises)wheresuchgoodsareproduced,manufacturedorwarehousedtohisotherregisteredpremises,otherthanapremisesofafirstorsecondstagedealer(hereinafterreferredtoastherecipientpremises),forfurtheruseinthemanufactureorproductionofsuchotherexcisablegoods(hereinafterreferredtoasthesubjectgoods)inrecipientpremisessubjecttoconditionthat

(a)thesubjectgoodsaremanufacturedorproducedusingthesaidintermediategoodsandclearedonpaymentofappropriatedutiesofexciseleviablethereonwithinaperiodofsixmonths,fromthedateofreceiptoftheintermediategoodsintherecipientpremisesor

(b)thesubjectgoodsaremanufacturedorproducedusingthesaidintermediategoodsandexportedoutofIndia,underbondorletterofundertakingwithinaperiodofsixmonths,fromthedateofreceiptoftheintermediategoodsintherecipientpremises,

andthatanyotherconditionsprescribedbytheCommissionerofCentralExcise,largetaxpayerunitinthisregardaresatisfied.

Explanation1.Thetransferchallanorinvoiceshallbeseriallynumberedandshallcontaintheregistrationnumber,name,addressofthelargetaxpayer,description,classification,timeanddateofremoval,modeoftransportandvehicleregistrationnumber,quantityofthegoodsandregistrationnumberandnameoftheconsignee.

ProvidedthatifthesubjectgoodsmanufacturedorproducedusingthesaidintermediategoodsarenotclearedonpaymentofappropriatedutiesofexciseleviablethereonorarenotexportedoutofIndiawithinthesaidperiodofsixmonths,dutiesofexcisepayableonsuchintermediategoodsshallbepaidbytherecipientpremiseswithinterestinthemannerandratespecifiedundersection11ABoftheAct.

Illustration.Excisedutyispayableonintermediategoods,namely,electronicsgoods,manufacturedbyfactoryAwhichareremovedwithoutpaymentofdutiesofexciseforuseinthemanufactureofsubjectgoods,namely,machines,infactoryBofthelargetaxpayer.Incasesuchmachinesarenotexportedorareremovedwithoutpaymentofdutiesofexcise,thenfactoryBshallpaydutiesofexcisepayableontheelectronicgoodssoclearedalongwithinterest:

Providedfurtherthatifanydutyofexciseispayableonsuchintermediategoodsandifthesaiddutyisnotpayableonsuchsubjectgoods,thesaiddutyofexciseasequivalenttothetotalamountpayableonsuchintermediategoodsalongwithinterestundersection11ABoftheActshallbepaidbytherecipientpremises.

Illustration.NationalCalamityContingentdutyispayableonintermediategoodsnamely,polyesteryarnmanufacturedbyfactoryA.Suchyarnisremovedwithoutpaymentofdutyofexciseforuseinthemanufactureofsubjectgoods,namely,greyfabricsinfactoryBofalargetaxpayer,(onwhichsuchNationalCalamityContingentdutyisnotpayable),thenfactoryBshallpayanamountequivalenttotheNationalCalamityContingentdutythatwouldhavebeenpayableonthepolyesteryarnalongwithinterestundersection11ABoftheAct.

Explanation2.Thedutypayableunderthefirstandsecondprovisosshallbethedutypayableonthedateandtimeofremovaloftheintermediategoodsfromthesenderspremises:

ProvidedalsothatnothingcontainedinthissubruleshallbeapplicableiftherecipientpremisesisavailingfollowingnotificationsofGovernmentofIndiaintheMinistryofFinance(DepartmentofRevenue),



(i)No.32/99CentralExcise,datedthe8thJuly,1999[G.S.R.508(E),dated8thJuly,1999](ii)No.33/99CentralExcise,datedthe8thJuly,1999[G.S.R.509(E),dated8thJuly,1999](iii)No.39/2001CentralExcise,datedthe31stJuly,2001[G.S.R.565(E),datedthe31stJuly,2001](iv)No.56/2002CentralExcise,datedthe14thNovember,2002[G.S.R.764(E),datedthe14thNovember,2002](v)No.57/2002CentralExcise,dated14thNovember,2002[G.S.R.765(E),datedthe14thNovember,2002](vi)No.56/2003CentralExcise,datedthe25thJune,2003[G.S.R.513(E),datedthe25thJune,2003]and(vii)No.71/2003CentralExcise,datedthe9thSeptember,2003[G.S.R.717(E),datedthe9thSeptember,2003]:

ProvidedalsothatnothingcontainedinthissubruleshallbeapplicabletoaexportorientedunitoraunitlocatedinaElectronicHardwareTechnologyParkorSoftwareTechnologyPark.

Explanation3.Ifalargetaxpayerfailstopayanyamountdueintermsofthefirstandsecondprovisos,itshallberecoveredalongwithinterestinthesamemannerasprovidedundersection11Aandsection11ABrespectivelyoftheAct.

(2)WherearegisteredpremisesofalargetaxpayermanufacturingexcisablegoodshaspaidtothecreditofCentralGovernmentanydutyofexciseinexcessofdutyofexcisepayableonaccountofarithmeticalerror,thesaidlargetaxpayermayadjusttheexcessdutysopaidbyhim,againsthisdutyliabilityforthesubsequentperiodsubjecttothelimitationsprescribedunderclause(b)ofsubrule(7)ofrule3oftheCENVATCreditRules,2004:

Providedthatsuchadjustmentshallbeadmissibleonlyifthesaidregisteredpremiseshasnotpassedontheincidenceofsuchexcessdutysopaidtoanyotherperson,andtheconsigneedoesnotavailcreditofsuchdutyunderthesaidCENVATCreditRules,2004.

(3)AnynoticeissuedbutnotadjudgedbyanyoftheCentralExciseofficeradministeringtheActorrulesmadethereunderimmediatelybeforethedateofgrantofacceptancebytheChiefCommissionerofCentralExcise,largetaxpayerunit,shallbedeemedtohavebeenissuedbyCentralExciseofficersofthesaidUnit.

(4)Alargetaxpayershallsubmitthemonthlyreturns,asprescribedundertheserules,foreachoftheregisteredpremises.

(5)Alargetaxpayer,ondemand,mayberequiredtomakeavailablethefinancial,production,storesandCENVATcreditrecordsinelectronicmedia,suchas,compactdiscortapeforthepurposesofcarryingoutanyscrutinyandverificationasmaybenecessary.

(6)Alargetaxpayermay,withintimationofatleastthirtydaysinadvance,optouttobealargetaxpayerfromthefirstdayofthefollowingfinancialyear.

(7)Provisionsoftheserules,insofarastheyarenotinconsistentwiththeprovisionsofthisruleshallmutatismutandisapplyincaseofalargetaxpayer.]

RULE12C.Maintenanceofrecordsandpaymentofdutybytheindependentweaverofunprocessedfabrics.AnindependentweaverofunprocessedfabricsfallingunderChapter50,51,52,53,54,55,58or60oftheFirstScheduletotheTariffAct,may,athisoption,authorizeanotherperson,onhisbehalf,tomaintainaccounts,payduty,prepareinvoiceandcomplywithanyoftheprovisionsoftheserulesexceptthatofrule9:

Providedthatprimaryresponsibilitytocomplywiththeprovisionsoftheserulesshallliewiththesaidindependentweaverandincaseofshortpaymentornonpaymentofdutyonsuchunprocessedfabrics,consequencesandpenaltiesshallapplybothtothesaidindependentweaverandhisauthorizedagent.

Explanation.Independentweavermeansaweaverwhoworksonhisown,purchasestheyarnhimselfandsellsthegreyfabricsmanufacturedbyhim.]

RULE12CC.Powertoimposerestrictionsincertaintypesofcases.Notwithstandinganythingcontainedintheserules,wheretheCentralGovernment,havingregardtotheextentofevasionofduty,natureandtypeof



offencesorsuchotherfactorsasmayberelevant,isoftheopinionthatinordertopreventevasionof,anddefaultinpaymentof,exciseduty,itisnecessaryinthepublicinteresttoprovideforcertainmeasuresincludingrestrictionsonamanufacturer,firststageandsecondstagedealeroranexporter,maybyanotificationintheOfficialGazette,specifynatureofrestrictionsincludingsuspensionofregistrationincaseofadealer,typesoffacilitiestobewithdrawnandprocedureforissueofsuchorderbyanofficerauthorizedbytheBoard.]

RULE[13.***]

RULE[13A.***]

RULE[14.***]

RULE15.Specialprocedureforpaymentofduty.(1)TheCentralGovernmentmay,bynotification,specifythegoodsinrespectofwhichanassesseeshallhavetheoptiontopaythedutyofexciseonthebasisofsuchfactorsasmayberelevanttoproductionofsuchgoodsandatsuchrateasmaybespecifiedinthesaidnotification,subjecttosuchlimitationsandconditions,includingthoserelatingtointerestorpenalty,asmaybespecifiedinsuchnotification.

(2)TheCentralGovernmentmayalsospecifybynotificationthemannerofmakinganapplicationforavailingofthespecialprocedureforpaymentofduty,theabatement,ifany,thatmaybeallowedonaccountofclosureofafactoryduringanyperiod,andanyothermatterincidentalthereto.

RULE16.Creditofdutyongoodsbroughttothefactory.(1)Whereanygoodsonwhichdutyhadbeenpaidatthetimeofremovalthereofarebroughttoanyfactoryforbeingremade,refined,reconditionedorforanyotherreason,theassesseeshallstatetheparticularsofsuchreceiptinhisrecordsandshallbeentitledtotakeCENVATcreditofthedutypaidasifsuchgoodsarereceivedasinputsundertheCENVATCreditRules,2002andutilisethiscreditaccordingtothesaidrules.

(2)Iftheprocesstowhichthegoodsaresubjectedbeforebeingremoveddoesnotamounttomanufacture,themanufacturershallpayanamountequaltotheCENVATcredittakenundersubrule(1)andinanyothercasethemanufacturershallpaydutyongoodsreceivedundersubrule(1)attherateapplicableonthedateofremovalandonthevaluedeterminedundersubsection(2)ofsection3orsection4orsection4AoftheAct,asthecasemaybe.

[Explanation.TheamountpaidunderthissubruleshallbeallowedasCENVATcreditasifitwasadutypaidbythemanufacturerwhoremovesthegoods.]

(3)Ifthereisanydifficultyinfollowingtheprovisionsofsubrule(1)andsubrule(2),theassesseemayreceivethegoodsforbeingremade,refined,reconditionedorforanyotherreasonandmayremovethegoodssubsequentlysubjecttosuchconditionsasmaybespecifiedbytheCommissioner.

RULE[16A.Removalofgoodsforjobwork,etc.Anyinputsreceivedinafactorymayberemovedassuchorafterbeingpartiallyprocessedtoajobworkerforfurtherprocessing,testing,repair,reconditioningoranyotherpurposesubjecttothefulfilmentofconditionsspecifiedinthisbehalfbytheCommissionerofCentralExcisehavingjurisdiction.]

RULE[16B.Specialprocedureforremovalofsemifinishedgoodsforcertainpurposes.TheCommissionerofCentralExcisemaybyspecialorderandsubjecttoconditionsasmaybespecifiedbytheCommissionerofCentralExcise,permitamanufacturertoremoveexcisablegoodswhichareinthenatureofsemifinishedgoods,forcarryingoutcertainmanufacturingprocesses,tosomeotherpremisesandtobringbacksuchgoodstohisfactory,withoutpaymentofduty,ortosomeotherregisteredpremisesandallowthesegoodstoberemovedonpaymentofdutyorwithoutpaymentofdutyforexportfromsuchotherregisteredpremises.]

RULE[16C.Specialprocedureforremovalofexcisablegoodsforcarryingoutcertainprocesses.TheCommissionerofCentralExcisemay,byspecialorderandsubjecttosuchconditionsasmaybespecifiedbyhim,permitamanufacturertoremoveexcisablegoodsmanufacturedinhisfactory,withoutpaymentofduty,forcarryingouttestsoranyotherprocessnotamountingtomanufacture,toanyotherpremises,whetherornotregistered,andaftercarryingoutsuchtestsoranysuchotherprocessmayallow,

(a)bringingbacksuchgoodstothesaidfactorywithoutpaymentofduty,forsubsequentclearanceforhome



consumptionorexport,asthecasemaybe,or

(b)removalofsuchgoodsfromthesaidotherpremises,forhomeconsumptiononpaymentofdutyleviablethereonorwithoutpaymentofdutyforexport,asthecasemaybe:

Providedthatthisruleshallnotapplytothegoodsknownasprototypeswhicharesentoutfortrialordevelopmenttest.]

RULE[17.RemovalofgoodsbyaHundredpercent.ExportOrientedUndertakingforDomesticTariffArea.] (1)Whereanygoodsare removed fromahundred per cent. exportoriented undertaking todomestic tariffarea,such removal shall bemade under an invoice by following the procedure specified in rule 11, and the dutyleviableonsuchgoodsshallbepaidbyutilizingtheCENVATcreditorbycreditingthedutypayabletotheaccountoftheCentralGovernmentinthemannerspecifiedinrule8.

(2)TheunitshallmaintainintheformspecifiedbynotificationbytheBoardappropriateaccountrelatingtoproduction,descriptionofgoods,quantityremoved,andthedutypaid.

[(3)Theunitshallsubmitamonthlyreturn,intheformspecified,bynotification,bytheBoard,totheSuperintendentofCentralExcise,withintendaysfromthecloseofthemonthtowhichthereturnrelates,inrespectofexcisablegoodsmanufacturedin,andreceiptofinputsandcapitalgoodsin,theunit.]

(4)Theproperofficermayonthebasisofinformationcontainedinthereturnfiledbytheunitundersubrule(3),andaftersuchfurtherenquiryashemayconsidernecessary,scrutinisethecorrectnessofthedutyassessedbytheassesseeonthegoodsremoved,inthemannertobeprescribedbytheBoard.(5)Everyassesseeshallmakeavailabletotheproperofficerallthedocumentsandrecordsforverificationasandwhenrequiredbysuchofficer.

RULE18.Rebateofduty.Whereanygoodsareexported,theCentralGovernmentmay,bynotification,grantrebateofdutypaidonsuchexcisablegoodsordutypaidonmaterialsusedinthemanufactureorprocessingofsuchgoodsandtherebateshallbesubjecttosuchconditionsorlimitations,ifany,andfulfilmentofsuchprocedure,asmaybespecifiedinthenotification.

Explanation.Exportincludesgoodsshippedasprovisionorstoresforuseonboardashipproceedingtoaforeignportorsuppliedtoaforeigngoingaircraft.

RULE19.Exportwithoutpaymentofduty.(1)Anyexcisablegoodsmaybeexportedwithoutpaymentofdutyfromafactoryoftheproducerorthemanufacturerorthewarehouseoranyotherpremises,asmaybeapprovedbytheCommissioner.

(2)Anymaterialmayberemovedwithoutpaymentofdutyfromafactoryoftheproducerorthemanufacturerorthewarehouseoranyotherpremises,foruseinthemanufactureorprocessingofgoodswhichareexported,asmaybeapprovedbytheCommissioner.

(3)Theexportundersubrule(1)orsubrule(2)shallbesubjecttosuchconditions,safeguardsandprocedureasmaybespecifiedbynotificationbytheBoard.

RULE20.Warehousingprovisions.(1)TheCentralGovernmentmaybynotification,extendthefacilityofremovalofanyexcisablegoodsfromthefactoryofproductiontoawarehouse,orfromonewarehousetoanotherwarehousewithoutpaymentofduty.

(2)Thefacilityundersubrule(1)shallbeavailablesubjecttosuchconditions,includingpenaltyandinterest,limitations,includinglimitationwithrespecttotheperiodforwhichthegoodsmayremaininthewarehouse,andsafeguardsandprocedure,includinginthemattersrelatingtodispatch,movement,receipt,accountalanddisposalofsuchgoods,asmaybespecifiedbytheBoard.

(3)Theresponsibilityforpaymentofdutyonthegoodsthatareremovedfromthefactoryofproductiontoawarehouseorfromonewarehousetoanotherwarehouseshallbeupontheconsignee.



(4)Ifthegoodsdispatchedforwarehousingorrewarehousingarenotreceivedinthewarehouse,theresponsibilityforpaymentofdutyshallbeupontheconsignor.

RULE21.Remissionofduty.WhereitisshowntothesatisfactionoftheCommissionerthatgoodshavebeenlostordestroyedbynaturalcausesorbyunavoidableaccidentorareclaimedbythemanufacturerasunfitforconsumptionorformarketing,atanytimebeforeremoval,hemayremitthedutypayableonsuchgoods,subjecttosuchconditionsasmaybeimposedbyhimbyorderinwriting:

Providedthatwheresuchdutydoesnotexceed[tenthousandrupees,]theprovisionsofthisruleshallhaveeffectasiffortheexpressionCommissioner,theexpressionSuperintendentofCentralExcisehasbeensubstituted:

Providedfurtherthatwheresuchdutyexceeds[tenthousandrupees]butdoesnotexceed[onelakhrupees],theprovisionsofthisruleshallhaveeffectasiffortheexpressionCommissioner,theexpressionAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,hasbeensubstituted:

Providedalsothatwheresuchdutyexceeds[onelakhrupees]butdoesnotexceed[fivelakhruppes],theprovisionsofthisruleshallhaveeffectasiffortheexpressionCommissioner,theexpressionJointCommissionerofCentralExciseorAdditionalCommissionerofCentralExcise,asthecasemaybe,hasbeensubstituted.

RULE22.Accesstoaregisteredpremises.(1)AnofficerempoweredbytheCommissionerinthisbehalfshallhaveaccesstoanypremisesregisteredundertheserulesforthepurposeofcarryingoutanyscrutiny,verificationandchecksasmaybenecessarytosafeguardtheinterestofrevenue.

[(2)Everyassessee,andfirststageandsecondstagedealershallfurnishtotheofficerempoweredundersubrule(1),alistinduplicate,of

(i)alltherecordspreparedandmaintainedforaccountingoftransactioninregardtoreceipt,purchase,manufacture,storage,salesordeliveryofthegoodsincludinginputsandcapitalgoods,asthecasemaybe

(ii)alltherecordspreparedandmaintainedforaccountingoftransactioninregardtopaymentforinputservicesandtheirreceiptorprocurementand

(iii)allthefinancialrecordsandstatements(includingtrialbalanceoritsequivalent).]

(3)[Everyassessee,andfirststageandsecondstagedealer]shall,ondemandmakeavailabletotheofficerempoweredundersubrule(1)ortheauditpartydeputedbytheCommissionerortheComptrollerandAuditorGeneralofIndia,

(i)therecordsmaintainedorpreparedbyhimintermsofsubrule(2)

(ii)thecostauditreports,ifany,undersection233BoftheCompaniesAct,1956(1of1956)and

(iii)theIncometaxauditreport,ifany,undersection44ABoftheIncometaxAct,1961(43of1961),

forthescrutinyoftheofficerorauditparty,asthecasemaybe.

[Explanation.Forthepurposesofthisrule,firststagedealerandsecondstagedealershallhavethemeaningsassignedtotheminCENVATCreditRules,2004.]

RULE23.Powertostopandsearch.AnyCentralExciseOfficer,maysearchanyconveyancecarryingexcisablegoodsinrespectofwhichhehasreasontobelievethatthegoodsarebeingcarriedwiththeintentionofevadingduty.

RULE24.Powertodetainorseizegoods.IfaCentralExciseOfficer,hasreasontobelievethatanygoods,whichareliabletoexcisedutybutnodutyhasbeenpaidthereonorthesaidgoodswereremovedwiththeintentionofevadingthedutypayablethereon,theCentralExciseOfficermaydetainorseizesuchgoods.

RULE25.Confiscationandpenalty.(1)Subjecttotheprovisionsofsection11ACoftheAct,ifanyproducer,



manufacturer,registeredpersonofawarehouseoraregistereddealer,

(a)removesanyexcisablegoodsincontraventionofanyoftheprovisionsoftheserulesorthenotificationsissuedundertheserulesor

(b)doesnotaccountforanyexcisablegoodsproducedormanufacturedorstoredbyhimor

(c)engagesinthemanufacture,productionorstorageofanyexcisablegoodswithouthavingappliedfortheregistrationcertificaterequiredundersection6oftheActor

(d)contravenesanyoftheprovisionsoftheserulesorthenotificationsissuedundertheseruleswithintenttoevadepaymentofduty,

then, all such goods shall be liable to confiscation and the producer or manufacturer or registered person of thewarehouseor a registereddealer, as the casemaybe, shall be liable to a penalty not exceeding the duty on theexcisablegoodsinrespectofwhichanycontraventionofthenaturereferredtoinclause(a)orclause(b)orclause(c)orclause(d)hasbeencommitted,or[rupeestwothousand],whicheverisgreater.

(2)Anorderundersubrule(1)shallbeissuedbytheCentralExciseOfficer,followingtheprinciplesofnaturaljustice.

RULE26.Penaltyforcertainoffences.[(1)]Anypersonwhoacquirespossessionof,orisinanywayconcernedintransporting,removing,depositing,keeping,concealing,sellingorpurchasing,orinanyothermannerdealswith,anyexcisablegoodswhichheknowsorhasreasontobelieveareliabletoconfiscationundertheActortheserules,shallbeliabletoapenaltynotexceedingthedutyonsuchgoodsor*[twothousandrupees],whicheverisgreater.

[(2)Anyperson,whoissues

(i)anexcisedutyinvoicewithoutdeliveryofthegoodsspecifiedthereinorabetsinmakingsuchinvoiceor

(ii)anyotherdocumentorabetsinmakingsuchdocument,onthebasisofwhichtheuserofsaidinvoiceordocumentislikelytotakeorhastakenanyineligiblebenefitundertheActortherulesmadethereunderlikeclaimingofCENVATcreditundertheCENVATCreditRules,2004orrefund,shallbeliabletoapenaltynotexceedingtheamountofsuchbenefitorfivethousandrupees,whicheverisgreater.]

RULE27.Generalpenalty.Abreachoftheserulesshall,wherenootherpenaltyisprovidedhereinorintheAct,bepunishablewithapenaltywhichmayextendtofivethousandrupeesandwithconfiscationofthegoodsinrespectofwhichtheoffenceiscommitted.

RULE28.ConfiscatedpropertytovestinCentralGovernment.(1)Whenanygoodsareconfiscatedundertheserules,suchthingshallthereuponvestintheCentralGovernment.

(2)TheCentralExciseOfficeradjudgingconfiscationshalltakeandholdpossessionofthethingsconfiscated,andeveryOfficerofPolice,ontherequisitionofsuchCentralExciseOfficer,shallassisthimintakingandholdingsuchpossession.

RULE29.Disposalofconfiscatedgoods.Confiscatedgoodsinrespectofwhichtheoptionofpayingafineinlieuofconfiscationhasnotbeenexercised,shallbesold,destroyedorotherwisedisposedofinsuchmannerastheCommissionermaydirect.

RULE30.Storagechargesinrespectofgoodsconfiscatedandredeemed.Iftheownerofthegoods,theconfiscationofwhichhasbeenadjudged,exerciseshisoptiontopayfineinlieuofconfiscation,hemayberequiredtopaysuchstoragechargesasmaybedeterminedbytheadjudicatingofficer.

RULE31.Powertoissuesupplementaryinstructions.(1)TheBoardortheChiefCommissionerortheCommissioner,mayissuewritteninstructionsprovidingforanyincidentalorsupplementalmatters,consistentwiththeprovisionsoftheActandtheserules.

RULE[32.Restrictionsonremovalofgoods.***]



RULE33.Transitionalprovision.Anynotification,circular,instruction,standingorder,tradenoticeorotherorderissuedundertheCentralExcise(No.2)Rules,2001bytheBoard,theChiefCommissionerortheCommissionerofCentralExcise,andinforceasonthe28thdayofFebruary,2002,shall,totheextentitisrelevantandconsistentwiththeserules,bedeemedtobevalidandissuedunderthecorrespondingprovisionsoftheserules.

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