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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.

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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)***]

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(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

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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,duri