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Excise Rules

CENTRAL EXCISE (APPEALS) RULES, 2001

CENTRAL EXCISE (APPEALS) RULES, 2001

Notification No. 32/2001-C.E. (N.T.),
dated 21-6-2001

In exercise of the powers conferred by section 37 of the Central Excise Act,
1944 (1 of 1944), the Central Government hereby makes the following rules,
namely :-


RULE 1. Short title, extent and commencement. —
(1) These rules
may be called the Central Excise (Appeals) Rules, 2001.

(2) They extent to the whole of India.

(3) They shall come into force on and from the 1st day of July, 2001.


RULE 2. Definitions. — In these rules, unless the context otherwise
requires, -

(a)    “Act” means the Central Excise
Act, 1944 (1 of 1944);

(b)    “Form” means a form appended
to these rules;

(c)     words and expressions used in
these rules and not defined but defined in the Act shall have the meanings
respectively assigned to them in the Act.


RULE 3. Form of appeal to Commissioner (Appeals). —
(1) An appeal under
sub-section (1) of section 35 of the Act to the Commissioner (Appeals) shall be
made in Form No. E.A.-1.

(2) The grounds of appeal and the form of verification as contained in Form No.
E.A.-1. shall be signed, -

(a)    in the case of an individual,
by the individual himself or where the individual is absent from India, by the
individual concerned or by any person duly authorised by him in this behalf; and
where the individual is a minor or is mentally incapacitated from attending to
his affairs, by his guardian or by any other person competent to act on his
behalf;

(b)    in the case of a Hindu
undivided family, by the Karta and, where the Karta is absent from India or is
mentally incapacitated from attending to his affairs, by any other adult member
of such family;

(c)     in the case of a company or
local authority, by the principal officer thereof;

(d)    in the case of a firm, by any
partner thereof, not being a minor;

(e)     in the case of any other
association, by any member of the association or the principal officer thereof;
and

(f)     in the case of any other
person, by that person or any person competent to act on his behalf.

(3) The form of appeal in Form No. E.A.-1 shall be filed in duplicate and shall
be accompanied by a copy of the decision or order appealed against.

RULE
4. Form of application to the Commissioner (Appeals). —

(1) An
application under sub-section (4) of section 35E of the Act to the Commissioner
(Appeals) shall be made in Form No. E.A.-2.

(2) The form of application in Form No. E.A.-2 shall be filed in duplicate and
shall be accompanied by a certified copy of the decision or order passed by the
adjudicating authority and a copy of the order passed by the Commissioner of
Central Excise directing such authority to apply to the Commissioner (Appeals).


RULE 5. Production of additional evidence before Commissioner (Appeals). —

(1) The appellant shall not be entitled to produce before the Commissioner
(Appeals) any evidence, whether oral or documentary, other than the evidence
produced by him during the course of the proceedings before the adjudicating
authority except in the following circumstances, namely :-

(a)    where the adjudicating
authority has refused to admit evidence which ought to have been admitted; or

(b)    where the appellant was
prevented by sufficient cause from producing the evidence which he was called
upon to produce by adjudicating authority; or

(c)     where the appellant was
prevented by sufficient cause from producing, before the adjudicating authority
any evidence which is relevant to any ground of appeal; or

(d)    where the adjudicating
authority has made the order appealed against without giving sufficient
opportunity to the appellant to adduce evidence relevant to any ground of
appeal.

(2) No evidence shall be admitted under sub-rule (1) unless the Commissioner
(Appeals) records in writing the reasons for its admission.

(3) The Commissioner (Appeals) shall not take any evidence produced under
sub-rule (1) unless the adjudicating authority or an officer authorised in this
behalf by the said authority has been allowed a reasonable opportunity, -

(a)    to examine the evidence or
document or to cross-examine any witness produced by the appellant; or

(b)    to produce any evidence or any
witness in rebuttal of the evidence produced by the appellant under sub-rule
(1).

(4) Nothing contained in this rule shall affect the power of the Commissioner
(Appeals) to direct the production of any document, or the examination of any
witness, to enable him to dispose of the appeal.


RULE 6. Form of appeal, etc., to the Appellate Tribunal. (1) An
appeal under sub-section (1) of section 35B of the Act to the Appellate Tribunal
shall be made in Form No. E.A.-3.

(2) A memorandum of cross-objections to the Appellate Tribunal under sub-section
(4) of section 35B of the Act shall be made in Form No. E.A.-4.

(3) Where an appeal under sub-section (1) of section 35B of the Act or a
memorandum of cross-objections under sub-section (4) of that section is made by
any person other than the Commissioner of Central Excise, the grounds of appeal,
the grounds of cross-objection and the forms of verification as contained in
Form Nos. E.A-3 and E.A-4, as the case may be, respectively shall be signed by
the person specified in sub-rule (2) of rule 3.

(4) The form of appeal in Form No. E.A.-3 and the form of memorandum of
cross-objections in Form No. E.A.-4 shall be filed in quadruplicate and shall be
accompanied by an equal number of copies of the order appealed against (one of
which at least shall be a certified copy).


RULE 7. Form of application to the Appellate Tribunal. — (1) An
application under sub-section (1) of section 35E of the Act to the Appellate
Tribunal shall be made in Form No. E.A.-5.

(2) The form of application in Form No. E.A.-5 shall be filed in quadruplicate
and shall be accompanied by an equal number of copies of the decision or order
passed by the Commissioner of Central Excise (one of which at least shall be a
certified copy) and a copy of the order passed by the Board directing such
Commissioner to apply to the Appellate Tribunal.


RULE 8. Form of application to the High Court. —
(1) An application under
sub-section (1) of section 35H of the Act requiring the High Court to direct the
Appellate Tribunal to the High Court any question of law shall be made in Form
No. E.A.-6 and such application shall be filed in quadruplicate.

(2) A memorandum of cross-objections under sub-section (3) of section 35H of the
Act to the High Court shall be made in Form No. E.A.-7 and such memorandum shall
be filed in quadruplicate.

(3) Where an application under sub-section (1) of section 35H of the Act or a
memorandum of cross-objections under sub-section (3) of that section is made by
any person other than the Commissioner of Central Excise, the application, the
memorandum or form of verification, as the case may be, contained in Form No.
E.A.-6 or Form No. E.A.-7 shall be signed by the person specified in sub-rule
(2) or rule 3.


RULE 9. Form of revision application to the Central Government. —
(1) A
revision application under sub-section (3) of section 35EE of the Act to the
Central Government shall be in Form No. E.A.-8.

(2) The grounds of revision application and the form of verification, as
contained in Form E.A.-8, shall be signed by the person specified in sub-rule
(2) of rule 3.

(3) Where the revision application is signed by the authorised representative of
the  applicant,  the  document  authorising  the  representative  to sign and
appear on behalf of the applicant shall be appended to such revision
application.

(4) The form of revision application in Form No. E.A.-8 shall be filed in
duplicate and shall be accompanied by two copies of the following documents,
namely :-

(i)     order referred to in the
first proviso to sub-section (1) of section 35B of the Act; and

(ii)    decision or order passed by
the Central Excise Officer, which was the subject matter of the order referred
to in clause (i) of this sub-rule.


RULE 10. Procedure for filing revision application. —
(1) The revision
application in Form E.A.-8 shall be presented in person to the Under Secretary,
Revision Application Unit, Government of India, Ministry of Finance, Department
of Revenue, 4th Floor, Jeevan Deep Building, Sansad Marg, New Delhi-110 001, or
sent by registered post to such officer.

(2) The revision application sent by registered post under sub-rule (1) shall be
deemed to have been submitted to the said Under Secretary on the date on which
it is received in the office of such officer.


RULE 11. Procedure for filing appeals etc. —
(1) An appeal in Form No.
E.A.-3 or a memorandum of cross-objections in Form No. E.A.-4 or Form No. E.A.-7
or an application in Form No. E.A.-5 or Form No. E.A.-6 shall be presented in
person to the Registrar or an officer authorized in his behalf by the Registrar,
or sent by registered post addressed to the Registrar or such officer.

(2) An appeal
or a memorandum of cross-objections or an application sent by post under
sub-rule (1) shall be deemed to have been presented to the Registrar or to the
officer authorized by the Registrar on the date on which it is received in the
officer of the Registrar, or, as the case may be, in the office of such officer.


RULE 12. Qualifications for authorized representatives. —
For the
purposes of clause (c) of sub-section (2) of section 35Q of the Act, an
authorized representative shall include a person who has acquired any of the
following qualifications namely :-

(a)    a Chartered Accountant within
the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or

(b)    a Cost Accountant within the
meaning of the Cost and Works Accountants Act, 1959 (23 of 1959); or

(c)     a Company Secretary within
the meaning of the Company Secretaries Act, 1980 (56 of 1980) who has obtained a
certificate of practice under section 6 of that Act; or

(d)    a post-graduate or an Honours
degree holder in Commerce or a post-graduate degree or diploma holder in
Business Administration from any recognised university; or

(e)     a person
formerly employed in the Department of Customs and Central Excise or Narcotics
and has retired or resigned from such employment after having rendered service
in any capacity in one or more of the said departments for not less than ten
years in the aggregate.


Explanation. –
In this rule “recognised University” means any of the
Universities specified below, namely :-

I.       Indian
Universities

Any Indian University incorporated
under any law for the time being in force in India;

II.      Rangoon
University;

III.    English and Welsh Universities

The Universities of Birmingham,
Bristol, Cambridge, Durham, Leeds, Liverpool, London, Manchester, Oxford,
Reading, Sheffield and Wales;

IV.    Scottish Universities

The  Universities  of  Aberdeen, 
Edinburgh,  Glasgow  and  St.   Andrews;

V.     Irish Universities

The Universities of Dublin (Trinity
College), the Queen’s University, Belfast and the National University of Dublin;

VI.    Pakistan Universities

Any Pakistan University incorporated
by any law for the time being in force;

VII.   Bangladesh Universities

Any Bangladesh
University incorporated by any law for the time being in force.


RULE 13. Authority under section 35Q(5)(b) of the Act. —
The Commissioner
of Central Excise having jurisdiction in the proceedings in which a person who
is not a legal practitioner is found guilty of misconduct in connection with
that proceeding under the Act shall be the authority for the purposes of clause
(b) of sub-section (5) of section 35Q of the Act.

CENTRAL EXCISE (ADVANCE RULINGS) RULES, 2002

CENTRAL EXCISE (ADVANCE RULINGS) RULES, 2002

[M.F. &

C.A.
(D.R.) Notification
No. 28/2002-C.E. (N.T.), dated 23-8-2002]

In exercise of the powers conferred by Section 37 read
with sub-sections (1) and (3) of section 23C, sub-section (7) of section 23D of
the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes
the following rules, namely : -

RULE 1.Short
title, extent and commencement.
– (1) These rules may be called the Central
Excise (Advance Rulings) Rules, 2002.

(2)They
extend to the whole of

India
.

(3)They
shall come into force on the date of their publication in the Official Gazette.

RULE 2.Definitions.
– In these rules, unless the context otherwise requires, -

(a)    “Act” means the Central Excise Act, 1944 (1 of 1944);

(b)    “Authority” means [the Authority for Advance Rulings
(Central Excise, Customs and Service Tax)] constituted under section 28F of the
Customs Act, 1962 (52 of 1962).

(c)     “Form-Application for Advance Rulings (Central Excise)”
means the form appended to these rules.

(d)    Words and expressions used and not defined herein but
defined in the Act shall have the meanings respectively, assigned to them in the
Act.

RULE 3.Form
and manner of application.
– (1) An application for obtaining an advance
ruling under sub-section (1) of section 23C of the Act shall be made in Form –
Application for Advance Rulings (Central Excise).

(2)The
application referred to in sub-rule (1), the verification contained therein and
all relevant documents accompanying such application shall be signed, -

(a)    in the case of an individual, by the individual himself,
or where the individual is absent from India, by the individual concerned or by
some person duly authorized by him in this behalf; and where the individual is a
minor or is mentally incapacitated from attending to his affairs, by his
guardian or by any other person competent to act on his behalf;

(b)    in the case of a Hindu undivided family, by the Karta of
that family and, where the Karta is absent from India or is mentally
incapacitated from attending to his affairs, by any other adult member of that
family;

(c)     in the case of a company or local authority, by the
principal officer thereof authorized by the company or the local authority, as
the case may be, for such purpose;

(d)    in the case of a firm, by any partner thereof, not being
a minor;

(e)     in the case of an association, by any member of the
association or the principal officer thereof; and

(f)     in the case of any other person, by that person or some
person competent to act on his behalf.

(3)Every
application shall be filed in quadruplicate and shall be accompanied by a fee of
two thousand five hundred rupees.

RULE 4.Certification
of copies of the advance rulings pronounced by the Authority.

- A copy of
the advance ruling pronounced by the Authority for Advance Rulings and duly
signed by the Members to be sent to each of the applicant and to the
Commissioner of Central Excise, under sub-section (7) of section 23D of the Act
shall be certified to be true copy of its original by the Commissioner,
Authority for Advance Rulings, or any other officer duly authorized by the
Commissioner, Authority for Advance Rulings, as the case may be.

AUTHORITY FOR ADVANCE RULINGS (PROCEDURE) RULES, 2003

AUTHORITY FOR ADVANCE RULINGS FOR CUSTOMS AND CENTRAL EXCISE
(SALARIES, ALLOWANCES AND TERMS AND CONDITIONS OF SERVICE OF CHAIRPERSON AND
MEMBERS) RULES, 2003

[Notification GSR 948 (E), dated 16-12-2003]

In exercise of the powers
conferred by sub-section (3) of section 28F of the Customs Act, 1962 (52 of
1962) read with clause (e) of section 23A of the Central Excise Act, 1944 (1 of
1944), the Central Government hereby makes the following rules, regulating the
salaries and allowances and terms and conditions of service of Chairperson and
Members of the Authority for Advance Rulings for Customs and Central Excise,
namely :-

1. Short title and
commencement.
– (1) These rules may be called the Authority for Advance
Rulings for Customs and Central Excise (Salaries, allowances and terms and
conditions of service of Chairperson and Members) Rules, 2003.

(2)They
shall come into force on the date of their publication in the Official Gazette.

2. Definitions. - In these
rules, unless the context otherwise requires, -

(a)     ‘Act’ means the Customs Act,
1962 (52 of 1962) and the Central Excise Act, 1944 (1 of 1944);

(b)     “Authority” means the
Authority for Advance Rulings for Customs and Central Excise constituted under
sub-section (1) of section 28F of the Customs Act, 1962 and clause (e) of
section 23A of the Central Excise Act, 1944;

(c)     ‘Chairperson’ means the
Chairperson of the Authority;

(d)     ‘Member’ means a Member of
the Authority.

3. Salary, Allowances etcetera
of the Chairperson.
– (1) The Chairperson shall be entitled to a monthly
salary at the same rate as is admissible to a Judge of the Supreme Court.

Provided that such salary, together
with the pension and pension equivalent of any other form of retirement benefit,
shall not exceed the last pay drawn by him before retirement as a Judge of the
Supreme Court.

(2) The Chairperson shall be
entitled to such allowances and other benefits as are admissible to a serving
Judge of the Supreme Court.

4. Pay and Allowances etcetera
of Members. -
A Member shall receive pay in the scale of Rs. 22,400 – 600 –
26,000 per month :

Provided that the aforementioned pay
shall be reduced by the amount of pension and pension equivalent of gratuity,
employer’s contribution to the Contributory Provident Fund or other form of
retirement benefits, if any, drawn or to be drawn by him.

5. Dearness Allowance and City
Compensatory Allowance. -
A Member shall receive dearness allowance and city
compensatory allowance at the rates admissible to Group ‘A’ officers of the
Central Government drawing an equivalent pay.

6. Leave. – A person
appointed as Chairperson or Member shall be entitled to such leave as is
admissible to an officer of the Central Government under Central Civil Service
(Leave) Rules, 1972.

Provided that the encashment of leave
taken on retirement from Government by a Member and the leave to be encashed at
the end of the tenure in the Authority shall be restricted to a total of 300
days.

7. Leave Sanctioning Authority.
– The Chairperson shall be the authority competent to sanction leave to a Member
and the President of India shall be the authority competent to sanction leave to
the Chairperson.

8. Term of Office. – (1)
The Chairperson or a Member shall hold office as such for a term of three years
from the date on which he enters upon his office but shall be eligible for
re-appointment for another term of three years :

Provided that no Chairperson or
Member shall hold office as such after he has attained -

(a) in the case of any Chairperson,
the age of seventy years, and

(b) in the case of any Member, the
age of sixty two years.

(2)A
person, when appointed as a Member, shall seek retirement and shall be deemed to
have retired from Government service before he enters upon his office as a
Member.

9. Contribution to Contributory
Provident Fund. -
The Chairperson and Members shall be entitled to make
contributions to the Contributory Provident Fund from the date of their
appointment in accordance with the Contributory Provident Fund Rules (India),
1962, subject to such conditions as are applicable to re-employed Central
Government servants.

10. Other Conditions of Service.
– (1) The conditions of service of Chairperson, for which no provision is made
in these rules, shall be governed by the Supreme Court Judges (Conditions of
Service) Act, 1958 (41 of 1958), and the Supreme Court Judges (Travelling
Allowance) Rules, 1959 and the Rules framed under the above mentioned Act. The
Chairperson shall also be entitled to all allowances, perquisites, privileges,
amenities and facilities as are admissible to sitting Judges of the Supreme
Court from time to time

(2)The
conditions of service of Members in respect of matters for which no provision is
made in these rules, shall be the same as may be applicable to other equivalent
officers of the Government of India.

11. Residuary Provisions.
Matters relating to the conditions of service of the Chairperson or the Members
with respect to which no express provision has been made in these rules shall be
referred in each case to the Central Government for its decision and the
decision of the Central Government thereon shall be binding on the Chairperson
or the Members.

12. Powers to Relax. – The
Central Government shall have the power to relax the provisions of any of these
rules in respect of any class or categories of persons.

 

AUTHORITY FOR ADVANCE RULINGS (CUSTOMS, CENTRAL EXCISE AND SERVICE TAX) PROCEDURE REGULATIONS, 2005

AUTHORITY FOR ADVANCE RULINGS
(CUSTOMS, CENTRAL EXCISE AND SERVICE TAX) PROCEDURE REGULATIONS, 2005

M.F. (D.R.) Notification No.
1/2005-AAR, dated 7-1-2005

In exercise of the powers conferred by section 28M
of the Customs Act, 1962 (52 of 1962), section 23H of the Central Excise Act,
1944 (1 of 1944) and section 96H of the Finance Act, 1994 (32 of 1994) and in
supersession of the Authority for Advance Rulings (Procedural) Rules, 2003,
except as respects things done or omitted to be done before such supersession,
the Authority for Advance Rulings (Customs, Central Excise and Service Tax)
hereby makes the following regulations to regulate its own procedure in all
matters arising out of  the exercise of its powers under the said Acts, namely
:-

1. Short title and commencement. – (1) These
regulations may be called the Authority for Advance Rulings (Customs, Central
Excise and Service Tax) Procedure Regulations, 2005 [ “AARUL (CEST) Procedure
Regulations”].

(2) They shall come into force on the 26th January,
2005.

2. Definitions. - In these regulations,
unless the context otherwise requires, -

(a)      “advance ruling” means an advance ruling as
defined in clause (b) of section 28E of the Customs Act, 1962 (52 of 1962)
(hereinafter referred to as the Customs Act) or clause (b) of section 23A of the
Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the Central
Excise Act) or clause (a) of section 96A in Chapter VA of the Finance Act, 1994
(32 of 1994)  (Chapters V and VA of the said Act referred to herein as the
Service Tax Provisions), as the case may be;

(b)      “applicant” means an applicant as defined
in clause (c) of section 28E of the Customs Act or clause (c) of section 23A of
the Central Excise Act or  clause (b) of section 96A of the Service Tax
Provisions,  as the case may be;

(c)      “application” means an application under
sub-section (1) of section 28H of the  Customs Act or sub-section (1) of section
23C of the Central Excise Act or sub-section (1) of section 96C of the Service
Tax Provisions,  as the case may be;

(d)     “authorized representative”, -

(i)       in relation to an applicant means an
authorized representative as defined in sub-section (2) of section 146A of the
Customs Act or sub-section (2) of section 35Q of the Central Excise Act or
referred to in sub-section (5) of section 96D of the Service Tax Provisions, as
the case may be;

(ii)     in relation to a Commissioner, means a
person -

(A)     authorized in writing by the Commissioner to
act as an authorized representative; or

(B)     appointed by the Central Government as
authorized representative or authorized by the Central Board of Excise and
Customs to appear, plead and act for the Commissioner in any proceeding before
the Authority;

(e)      “Authority” means the Authority for Advance
Rulings constituted under section 28F of the Customs Act and referred to in
clause (e) of section 23A of the Central Excise Act and clause (d) of section
96A of the Service Tax Provisions;

(f)       “Chairperson” means the Chairperson of the
Authority;

(g)      “Commissioner”, in respect of an
application, means -

(i)       the Commissioner of Customs or the
Commissioner  of Central Excise, as the case may be, specified in the
application; or

(ii)     the Commissioner designated by the Chairman
of the Central Board of Excise and Customs in respect of the application ;

(h)     “Member” means a Member of the Authority and
includes the Chairperson;

(i)       “petition” means any petition of
interlocutory, incidental or ancillary nature or representation filed in a
pending or disposed of application;

(j)       “Rules” means the Customs (Advance
Rulings) Rules, 2002 or the Central Excise (Advance Rulings) Rules, 2002 or the
Service Tax (Advance Rulings) Rules, 2003, as the case may be;

(k)      “Secretary” means a Commissioner of Customs
or Commissioner of  Central Excise designated as  Secretary by the Authority and
includes an Additional Commissioner or a Joint Commissioner of Customs or of 
Central Excise, so designated;

(l)       words and expressions used and not defined
herein but defined in the Customs Act or the Central Excise Act or the Service
Tax Provisions, as the case may be, shall have the meanings respectively
assigned to them in that enactment.

3. Language of the Authority. – (1) The
language of the Authority shall be Hindi/English.

(2) Where any document is in a language other than
Hindi or English, a Hindi/English translation thereof duly attested shall be
filed along with the original document.

4. Powers of the Authority. - (1) The
Authority shall have the power to hear and determine all applications and
petitions.

(2) The Authority may, if any difficulty arises in
giving effect to its order/advance ruling, either suo motu or on a
petition made by the applicant or the Commissioner within a period of three
months of noticing the difficulty, by appropriate order remove such difficulty,
and pass such other order as it considers just and necessary in the
circumstances of the case.

(3) The Authority may reopen the hearing of any
case, before pronouncement of its order/advance ruling, for sufficient cause.

(4) The Authority may, in an appropriate case,
direct -

(i)       examination of any records and submission
of report;

(ii)     conduct of any technical, scientific or
market enquiry of any goods or services and submission of report and may also
call for reports from experts and order such further investigation as may be
necessary for effectual disposal of the application.

(5) The Authority shall have all the powers of a
civil court in regard to the following matters, namely :-

(i)       discovery and inspection;

(ii)     enforcing the attendance of any person and
examining him on oath;

(iii)    issuing commissions; and

(iv)    compelling production of books of account
and other records.

5. Powers and functions of the Secretary. - 
(1)  The Secretary shall be in overall charge of the office of the Authority and
shall function under direct supervision of the Chairperson.

(2) The Secretary shall -

(a)      have custody of the records and the
official seal of the Authority;

(b)      receive all applications and petitions
filed before the Authority;

(c)      scrutinize applications and petitions and
point out omissions and defects in the application/petition and require the
applicant/petitioner to make good the omissions or remove the defects within the
time granted by the Secretary and in case of non-compliance place such
application/petition before the Authority for appropriate orders;

(d)     forward a copy of the application along with
its enclosures to the Commissioner to transmit records of the case, if any, and
to offer his comments on the application;

(e)      place all the applications before the
Authority for appropriate orders under sub-section (2) of section 28-I of the
Customs Act or sub-section (2) of section 23D of the Central Excise Act  or
sub-section (2) of section 96D of the Service Tax Provisions,  as the case may
be;

(f)       issue notices or other processes, as may
be ordered by the Authority;

(g)      verify service of notices or other
processes on the parties to the application/petition and obtain necessary orders
of the Chairperson in case of defective service;

(h)     requisition records from the custody of any
person, on the orders of the Authority;

(i)       return original records to the person from
whose custody they were requisitioned;

(j)       allow inspection of the records of the
Authority;

(k)      carry out any amendment of the records of
the Authority to  conform to its directions ;

(l)       grant to the parties to the
application/petition certified copies of the orders/advance rulings and
documents filed in the proceedings before the Authority;

(m)    preserve records of every
application/petition and other materials for a period of five years from the
date of disposal of the application and to weed out/destroy the same thereafter
unless otherwise directed by the Authority; and

(n)     discharge any other function as may be
assigned by the Authority by special or general order.

6. Signing of notices, etc. (1) Every
requisition, direction, letter, authorization, or notice to be issued on behalf
of the Authority, shall be signed by the Secretary or by any other officer
authorized by him.

(2) Nothing contained in sub-regulation (1) shall
apply to any direction which the Authority may issue to an applicant or a
Commissioner or an authorized representative present during the course of the
hearing.

7. Mode of service of notices, etc. - (1) The
service of every notice or other document required to be served on or delivered
to, any person in compliance with the orders of the Authority shall be in the
manner specified hereunder.

(2) The service of notice or document shall be made
by hand delivery or by registered post with acknowledgement due or by speed post
or by courier service or by any other means of transmission of documents
including e-mail/fax.

(3) Notices or documents required to be served on
the parties to the application/petition shall be deemed to have been served, if
delivered at the address indicated in the application/petition and in the case
of a Commissioner at the Office of the Commissioner.

8.Procedure for filing applications. -
(1) Every application filed before the Authority shall be in the prescribed
form, that is it to say, Form – AAR (CUS) of the Customs (Advance Rulings)
Rules, 2002 or Form – AAR (CE) of the Central Excise (Advance Rulings) Rules,
2002 or Form – AAR (ST) of the Service Tax (Advance Rulings) Rules, 2003, as the
case may be.

(2) The application shall be filed in quadruplicate
and presented by the applicant in person or by an authorized representative to
the Secretary or any other officer authorized by the Secretary in this  behalf
or sent by registered post or by courier service or by speed post addressed to
the Secretary along with a fee of two thousand five hundred Indian Rupees in the
form of demand draft drawn in favour of “Authority for Advance Rulings (Customs,
Central Excise and Service Tax)” payable at New Delhi.

(3) Applications for advance ruling shall be
received between 10:00 a.m. and 1:00 p.m. and between 2:00 p.m. and 5:00 p.m. on
any working day.

(4) Every application, its verification, annexures,
statements and supporting documents shall be signed in the manner set out in the
Rules.

(5) The application shall be accompanied by evidence
that the person who has signed the application, verification and other documents
is authorized/ competent to sign under the Rules.

(6) Every application, its verification, annexures,
statements and supporting documents shall be on A-4 size paper and should be
neatly and legibly written, typed or printed leaving a left margin of 5 cms. and
only on one side of a page in double-line spacing.

(7) An application under sub-regulation (1) shall be
deemed to have been filed on the date on which it is received in the office of
the Authority.

(8) If the applicant is not based in India, he
shall, inter alia,   indicate in a separate annexure to the application –

(a)      his postal and e-mail address abroad;

(b)      the name and address including e-mail
address of his representative in India, if any, authorized to act on his behalf
and to receive notices or other documents sent by the Authority.

9. Procedure on receipt of an application. –
(1) The officer receiving the application shall put his initials and the stamp
of the Authority thereon together with the date and time of receipt thereof and
shall also acknowledge its receipt and he shall also enter the particulars of
the application in the register of daily filing, maintained for that purpose.

(2) The application shall be scrutinized by the
officer authorized by the Secretary for that purpose for any deficiency/defect
and any deficiency/defect noticed in the application or annexures thereof shall
be communicated to the applicant at the earliest.

(3) The applicant shall be required to rectify the
deficiency/defect within the time granted by the Secretary and such application
shall be deemed to have been received on the date when it is re-submitted after
removal of such deficiency/defect, for the purposes of sub-section (6) of
section 28-I of the Customs Act or sub-section (6) of section 23D of the Central
Excise Act or sub-section (6) of section 96D of the Service Tax Provisions, as
the case may be.

(4) Date of receipt of an application free from any
defect or deficiency in the secretariat of the Authority shall be deemed to be
the date of the application for the purposes of sub-section (4) of section 28H
of the Customs Act or sub-section (4) of section 23C of the Central Excise Act
or sub-section (4) of section 96C of the Service Tax Provisions.

(5) When an application is free from any
defect/deficiency, an endorsement “examined and registered” shall be made
thereon and a serial number allotted thereto.

(6) In case the defect/deficiency is not
removed/made good within the time granted under sub-regulation (3), the
application shall be placed before the Authority for appropriate orders.

(7) On allotment of serial number to an application
under sub-regulation (5), a copy of the application shall be forwarded to the
concerned Commissioner of Customs/Central Excise for furnishing relevant records
with comments, if any.

(8) On receipt of the relevant records/comments from
the concerned Commissioner under sub-regulation (7) or after expiry of two weeks
or such further period as may be allowed by the Authority, the application shall
be placed before the Authority for passing orders in terms of sub-section (2) of
section 28-I of the Customs Act or sub-section (2) of section 23D of the Central
Excise Act or sub-section (2) of section 96D of the Service Tax Provisions, as
the case may be.

(9) In a case where the Authority considers that
prima facie
the application is liable for rejection, a notice shall be
issued to the applicant indicating the reasons therefor together with the
comments, if any, of concerned Commissioner, giving an opportunity to the
applicant of being heard in person or through an authorized representative and a
copy of the notice shall be endorsed to the concerned Commissioner.

(10) On the date fixed for hearing or such other
date to which the case is adjourned, the Authority may pass an order either
allowing or rejecting the application under sub-section (2) of section 28-I of
the Customs Act or sub-section (2) of section 23D of the Central Excise Act or
sub-section (2) of section 96D of the Service Tax Provisions, as the case may
be, and a copy of the order passed by the Authority shall be sent to the
applicant and the concerned Commissioner.

(11) Where an application is allowed, the comments
of the concerned Commissioner and further material, if any, shall accompany a
copy of the order sent to the applicant drawing his attention to the statutory
provisions that he has a right to be heard, if he so desires, before
pronouncement of advance ruling and the response of the applicant should reach
the Authority within two weeks of receipt of the copy of the order.

(12) Hearing of the application shall normally be
held between 11:00 a.m. and 5:00 p.m. on a working day in the court-room of the
Authority or an alternative place fixed by the Authority.

(13) In the absence of request for personal hearing
from the applicant, advance ruling shall be pronounced after hearing the
concerned Commissioner or his authorized representative, if present, on the date
of hearing and on the basis of records available with the Authority.

(14) Where the Authority reserves an application for
consideration, the advance ruling or such other order as the Authority may deem
fit shall be pronounced in the open court under intimation to the applicant and
the concerned Commissioner and a copy of the advance ruling/order shall be
served upon the parties to the application.

10.Commissioner to be designated by the
Board. –
Where in an application there is no Commissioner specified by the
applicant, a copy of the application and enclosures thereto shall be forwarded
by the Authority to the Chairman of the Central  Board of Excise and Customs
calling upon him  to  designate, within such period as may be fixed by the
Authority, a Commissioner for the purposes of the application, failing which the
application shall be proceeded with in the absence of a Commissioner.

11.Additional facts by way of a petition.
(1) The Authority may, at its discretion, either suo motu or on a
petition made to this effect by a party to the application, permit or require
the applicant or the Commissioner to submit such additional facts as may be
necessary to enable it to pronounce its advance ruling.

(2) The additional facts sought to be brought on
record, by the petitioner shall be supported by necessary documents, if any,
duly verified.

12.Questions not specified in the
application. –
(1) The applicant shall not, except with the leave of the
Authority, urge or be heard in respect of any question other than the question
specified in the application but in pronouncing an advance ruling on the
question set forth in the application, the Authority may at its discretion
consider such other aspects as may be necessary to pronounce the advance ruling
on the question specified in the application.

(2) On a petition made by an applicant, the
Authority may permit amendment of a question, in appropriate cases.

13.Authorization to be filed. – (1)
An authorized representative appearing for the applicant/Commissioner shall 
before the commencement of the hearing, file before the Secretary, a document
authorizing him to appear for the applicant/Commissioner.

(2) Every authorized representative appearing on
behalf of the applicant/Commissioner shall notify to the Secretary the address
of his office, before the commencement of the hearing.

(3) Any change of an authorized representative shall
be intimated by the concerned party to the Secretary as well as to the other
party to the application.

(4) No person other than an applicant or the
concerned Commissioner or their authorized representative, shall be heard in
person save by special leave of the Authority.

14.Continuation of proceedings after the
death, etc., of the applicant. -
Where the applicant, being an individual,
dies, or being a company or association of persons, whether incorporated or not,
is  wound up or dissolved or disrupted or amalgamated or succeeded to by any
other person or otherwise comes to an end, the application shall not abate and
the proceedings in the application may be continued by the executor,
administrator, liquidator, receiver or assignee or other legal representative of
the applicant, as the case may be, on a petition  made in this behalf, if the
Authority considers that the circumstances so justify.

15.Hearing of application. – (1) On
the day fixed for hearing or any other day to which the case is adjourned, the
Authority shall hear the applicant or his authorized representative in cases
where it is proposed to reject the application or where the applicant seeks an
opportunity of being heard; the Authority may also hear the Commissioner or his
authorized representative, if it considers it necessary, before pronouncing its
advance ruling.

(2) In an appropriate case, the Authority may call
upon any person to depose or to supply such material/document, as it may
consider necessary to arrive at a decision.

(3) The Authority may, in an appropriate case where
an important question of law arises, issue notice to a Law Officer of the
Central Government including the Attorney General and Solicitor General to
assist the Authority in the matter.

(4) It will also be open to the Authority to appoint
an advocate as amicus curie to assist the Authority in an application.

(5) The Authority may, on such conditions as the
circumstances of the case require, adjourn the hearing of the application.

16.Hearing of application ex parte.
 Where on the day fixed for hearing or any other day to which the case is
adjourned, the applicant or the Commissioner does not appear in person or
through an authorized representative when the application is called for hearing,
the Authority may dispose of the application ex parte on merits :

Provided that where an application has been
disposed of  under this regulation  and the applicant or the Commissioner, as
the case may be, applies within seven days of receipt of a copy of the
order/advance ruling  and the Authority is satisfied that there was sufficient
cause for his non-appearance when the application was called for hearing, the
Authority may, after allowing the opposite party a reasonable opportunity of
being heard, make an order setting aside the ex parte order/advance
ruling and restore the application for fresh hearing.

17.Withdrawal of application. - The
applicant may withdraw his  application within thirty days from the date of such
application and thereafter only with the leave of the Authority.

18. Modification of the order/advance ruling. -
The Authority may suo motu or on a petition by the applicant or the
Commissioner, but before pronouncement of an advance ruling or before an advance
ruling pronounced has been given effect to, on being satisfied that an
order/advance ruling was pronounced under mistake of law or fact, modify such
order/advance ruling in such respects as it considers appropriate, after
allowing the applicant and the Commissioner a reasonable opportunity of being
heard.

19. Rectification of mistakes. - (1) The
Authority may, with a view to rectifying any mistake apparent from the record,
amend any advance ruling pronounced by it before such ruling has been given
effect to.

(2) Such amendment may be made suo motu or
when the mistake is brought to the notice of the Authority by the applicant or
the Commissioner, but only after allowing the applicant and the Commissioner a
reasonable opportunity of being heard.

20. Amendment of the records. - If at any
stage of the proceedings it is brought to the notice of the  Authority that
there is any factual or material error in the records, the Authority  may permit
amendment of the records after hearing the applicant and the Commissioner.

21. Supply of certified copies. – The
Secretary may grant certified copies  of documents, orders or advance rulings 
to the applicant or the Commissioner on a written request.

22. Inspection of records. - (1) The
applicant or the Commissioner or his authorized representative may be allowed to
inspect the records of an application/petition on making a written request to
the Secretary subject to the condition that only those documents shall be made
available for inspection that are relied upon in the proceedings before the
Authority.

(2) Inspection shall be allowed only in the presence
of an officer of the Authority and taking of notes and not copies of the
documents shall be permitted.

23. Declaration of advance ruling to be void in
certain circumstances. -
(1) Where it is brought to the notice of the
Authority on a representation made by the Commissioner or otherwise that an
advance ruling pronounced by it has been obtained by the applicant by fraud or
misrepresentation of facts, the matter shall be examined by the Authority and
any such representation shall be supported by an affidavit duly attested and
accompanied with attested copies of documents relied upon.

(2) If the Authority after examining  the
representation is prima facie of the view that the advance ruling appears
to have been obtained by the applicant by fraud or misrepresentation of facts,
the applicant shall be given a notice to explain as to why the ruling should not
be declared void ab initio under sub-section (1) of section 28K of the
Customs Act or sub-section (1) of section 23F of the Central Excise Act or
sub-section (1) of section 96F of the Service Tax Provisions, as the case may
be.

(3) Such notice to the applicant shall be in writing
-

(a)      informing him of the grounds on which it is
proposed to declare the advance ruling as void ab initio;

(b)      enclosing copies of the documents, if any,
sought to be relied upon;

(c)      giving an opportunity of making a
representation in writing within such reasonable time as may be specified in the
notice against the grounds for declaring the advance ruling void ab initio;
and

(d)     giving a reasonable opportunity of being
heard in person or through an authorized representative in the matter.

(4) A copy of the notice with enclosures shall also
be forwarded to the Commissioner for comments, if any, and a reasonable
opportunity shall also be allowed to the Commissioner or his authorized
representative of being heard before passing any order.

(5) Where the Authority finds that the advance
ruling was obtained by the applicant by fraud or misrepresentation of facts, the
same shall be declared void ab initio.

24. Proceedings open to the public. –
Proceedings before the Authority shall be open to the public and where the
applicant/Commissioner so requests the Authority may order in a given case that
no person other than the applicant, the Commissioner or their authorized
representatives shall remain present during such proceedings.

25. Publication of orders/advance rulings. –
Such of the orders/advance rulings of the Authority, as the Chairperson deems
fit for publication in any authoritative report or the press, may be released
for such publication on such terms and conditions as the Chairperson may
specify.

26. Authentication and communication of
orders/advance rulings. –
(1) Every order/advance ruling  of the Authority 
shall be duly signed by the Chairperson and the Members of the Authority
pronouncing the order/advance ruling  and bear the official seal of the
Authority.

(2) A certified copy each of order/advance ruling of
the Authority shall be communicated to the applicant and the Commissioner under
the signature of the Secretary or another officer of the Authority authorized by
the Secretary in this behalf and bear the official seal of the Authority.

27. Proceedings of Authority. - (1) When one
or both of the Members of the Authority other than the Chairperson is unable to
discharge his functions owing to absence, illness or any other cause or in the
event of occurrence of any vacancy or vacancies in the office of the Members,
the Chairperson alone or the Chairperson and the remaining Member may function
as the Authority.

(2) Subject to the provisions of sub-regulation (3),
in case there is difference of opinion among the Members hearing an application,
the opinion of the majority of Members shall prevail and order/advance ruling of
the Authority shall be expressed in terms of the view of the majority but any
Member dissenting from the majority view may record his reasons separately.

(3) Where the Chairperson and one other Member hear
a case under sub-regulation (1) and are divided in their opinion, the opinion of
the Chairperson shall prevail.

28. Procedure in case of petition. – The
provisions contained in these regulations for hearing and disposal of an
application shall apply, mutatis mutandis, to the hearing and disposal of
all petitions before the Authority.

29. Dress regulation. - (1) An authorized
representative shall appear before the Authority in dress prescribed for the
members of his profession by the competent professional body, if any.

(2) All other persons appearing before the Authority
shall be properly dressed.

30. Prohibition of arms, mobile phones etc. -
No person shall be allowed to bring mobile phones, sticks, arms or other weapons
in the room where the Authority conducts the proceedings.

 

CENTRAL EXCISE (COMPOUNDING OF OFFENCES) RULES, 2005

CENTRAL EXCISE (COMPOUNDING OF
OFFENCES) RULES, 2005

[M.F. (D.R.) Notification No. 37/2005-C.E. (N.T.), dated
30-12-2005]

In exercise of the powers conferred by clause (id) of
sub-section (2) of section 37 read with sub-section (2) of section 9A of the
Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the
following rules, namely :

RULE 1. Short title and commencement. -

(i)     These rules may be called the Central Excise
(Compounding of Offences) Rules, 2005.

(ii)    They shall come into force on the date of their
publication in the Official Gazette.

RULE
2. Definitions. -
In these rules, unless the context otherwise requires,

(a)    “Act” means the Central
Excise Act, 1944 (1 of 1944);

(b)    “applicant” means any
assessee or any other person, but shall not include officers of Central Excise
as appointed by Board or Commissioner of Central Excise under Rule 3 of the
Central Excise Rules, 2002;

(c)     “compounding authority”
means the Chief Commissioner of Central Excise, having jurisdiction over the
place where the offence under the Central Excise Act, 1944, have been or alleged
to have been committed;

(d)    “form” means the form
appended to these rules;

(e)     “reporting authority”
means, the Commissioner of Central Excise, having jurisdiction over the
factory/place where the offences under the Act have been or are alleged to have
been committed or any other officer as may be authorized in this regard by the
Chief Commissioner of Central Excise having jurisdiction over the place where
such offences under the Act have been or are alleged to have been committed;

(f)     ”section” means a section
of the Act; and

(g)    words and expressions used
in these rules and not defined but defined in the Act shall have the respective
meanings assigned to them in the Act.

RULE 3. Form and manner of application. – (1) An
applicant may, either before or after institution of prosecution, make an
application under sub-section 2 of section 9A in the form appended to these
rules, to the Compounding authority to compound the offence :

Explanation. - Where an offence under
the Act has been committed at more than one place falling under the jurisdiction
of more than one compounding authority, then the Chief Commissioner of Central
Excise having jurisdiction over such place where the value of goods seized, or
the amount of duty evaded or attempted to be evaded is more than the others
shall be the competent authority.

RULE 4. Procedure on receipt of application under rule 3
(1) On receipt of an application under rule 3, the compounding authority
shall call for a report from the reporting authority with reference to the
particulars furnished in the application, or any other information, which may be
considered relevant for examination of such application.

(2) Such report shall be
furnished by the reporting authority within a period of one month or within such
extended period as may be allowed by the compounding authority, from the date of
receipt of communication from the compounding authority.

(3) The
compounding authority, after taking into account the contents of the said
application, may, by order, either allow the application indicating the
compounding amount in terms of rule 5 and grant him immunity from prosecution in
terms of rule 6 or reject such application :

Provided
that application shall not be rejected unless an opportunity has been given to
the applicant of being heard and the grounds of such rejection are mentioned in
such order.

[Provided
further that application shall not be allowed unless the duty, penalty and
interest liable to be paid have been paid for the case for which application has
been made.]

(4) A copy
of every order under sub-rule (3) shall be sent to the applicant.

(5) The
applicant shall, within a period of thirty days from the date of receipt of
order under sub-rule (3) allowing the compounding of offences, pay the
compounding amount, as ordered to be paid by the compounding authority and shall
furnish the proof of such payment to the compounding authority.

(6) The
compounding amount once paid shall not be refunded except in cases where the
court rejects grant of immunity from prosecution.

(7) The
applicant cannot claim, as of right, that his offence shall be compounded.

[RULE 5. Fixation of the compounding amount. – For
the purpose of compounding of offences under the provisions of the Act, the
compounding amount shall be as provided in the following Table, namely :-

TABLE


Sl. No.


Offence


Compounding amount

(1)

(2)

(3)

1.

Offence specified under section 9(1)(a) of the Act

Rupees fifty thousand for the first offence and to be
increased by hundred per cent of this amount for each subsequent offence.

2.

Offence specified under section 9(1)(b) of the Act

Up to fifty per cent of the amount of duty evasion,
subject to minimum of ten per cent of duty evasion.

3.

Offence specified under section 9(1)(bb) of the Act

Upto fifty per cent of the amount of duty evasion,
subject to minimum of ten per cent of duty evasion.

4.

Offence specified under section 9(1) (bbb) of the Act

Upto twenty five per cent of the amount of duty
evasion, subject to minimum of ten per cent of duty evasion.

5.

Offence specified under section 9(1)(bbbb) of the Act

Upto fifty per cent of the amount of CENVAT Credit
wrongly taken or utilized, subject to minimum often per cent of said
amount.

6.

Offence specified under section 9(1)(c) of the Act

Rupees fifty thousand for the first offence and to be
increased by hundred per cent of this amount for each subsequent offence.

7.

Offence specified under section 9(1)(d) of the Act

Upto twenty five per of the amount of duty evasion,
subject to minimum of ten per cent of duty evasion.

Provided
that if a person has, in respect of same goods, committed offences falling under
more than one category specified above and where amount of duty evasion or
amount of CENVAT Credit wrongly taken or utilized is same for all such offences,
the compounding amount, in such cases, shall be the amount determined for the
offence for which a higher compounding amount has been prescribed.]

RULE
6. Power of Compounding authority to grant immunity from prosecution. –
The
compounding authority, if he is satisfied that any person who has made the
application for compounding of offence under these rules has co-operated in the
proceedings before him and has made full and true disclosure of facts relating
to the case, grant to such person, subject to such conditions as he may think
fit to impose, immunity from prosecution for any offence under the Central
Excise Act, 1944 with respect to the case covered by the compounding of offence.

RULE
7. Withdrawal of Immunity from prosecution in certain conditions. –

(1) An
immunity granted to a person under rule 6 shall stand withdrawn if such person
fails to pay any sum specified in the order of compounding passed by the
compounding authority, under sub-rule (3) of rule 4 within the time specified in
such order or fails to comply with any other condition subject to which the
immunity was granted and thereupon the provisions of the Central Excise Act,
1944 shall apply as if no such immunity had been granted.

(2) An
immunity granted to a person under sub-rule (1) above may, at any time, be
withdrawn by the Compounding authority, if he is satisfied that such person had,
in the course of the compounding proceedings, concealed any particulars,
material or had given false evidence, and thereupon such person may be tried for
the offence with respect to which immunity was granted or for any other offence
that appears to have been committed by him in connection with the compounding
proceedings and thereupon the provisions the Central Excise Act, 1944 shall
apply as if no such immunity had been granted.

CENTRAL EXCISE (SETTLEMENT OF CASES) RULES, 2007

CENTRAL EXCISE (SETTLEMENT OF CASES) RULES, 2007

[Notification No. 28/2007-C.E. (N.T.), dated 28-5-2007]

In exercise of the powers conferred by section 37 of the
Central Excise Act, 1944 (1 of 1944) and in supersession of the Central Excise
(Settlement of Cases) Rules, 2001, except as respects things done or omitted to
be done before such supersession, the Central Government hereby makes the
following rules, namely :-

RULE 1. Short title and commencement. — (1) These
rules may be called the Central Excise (Settlement of Cases) Rules, 2007.

(2) They shall come into force on and from the 1st day of
June, 2007.

RULE 2. Definitions. — In these rules, unless the
context otherwise requires, -

(a)    “Act” means the Central Excise Act, 1944 (1 of 1944);

(b)    “Form SC(E)-1” means the form appended to these rules;

(c)     ‘section’ means section of the Act;

(d)    words and expressions used herein and not defined but
defined in the Act, shall have the meanings respectively assigned to them in the
Act.

RULE 3. Form and manner of Application. — (1) An
application under sub-section (1) of section 32E shall be made in the Form SC(E)-1.

(2) The application referred to in sub-rule (1), the
verification contained therein and all relevant documents accompanying such
application shall be signed, -

(a)    in the case of an individual, by the individual himself
or where the individual is absent from India, by the individual concerned or by
some person duly authorized by him in this behalf; and where the individual is a
minor or is mentally incapacitated from attending to his affairs, by his
guardian or by any other person competent to act on his behalf;

(b)    in the case of a Hindu undivided family, by the Karta
of such family and, where the Karta is absent from

India
or is
mentally incapacitated from attending to his affairs, by any other adult member
of such family;

(c)     in the case of a company or local authority, by the
principal officer thereof;

(d)    in the case of a firm, by any partner thereof, not being
a minor;

(e)     in case of any other association, by any member of the
association or the principal officer thereof; and

(f)     in the case of any other person, by that person or some
person competent to act on his behalf.

(3) Every application in Form SC(E)-1 shall be filed in
quintuplicate and shall be accompanied by a fee of one thousand rupees.

(4) The additional amount of excise duty accepted by the
applicant under sub-section (1) of section 32E, along with interest due thereon,
shall be deposited by him in any of the authorized bank under TR-6 challan in
quintuplicate.

RULE 4. Disclosure of information in the application for
settlement of cases.
— The Settlement Commission shall, while calling for a
report from the Commissioner of Central Excise under sub-section (3) of section
32F, forward a copy of the application referred to in sub-rule (1) of rule 2
along with the annexure to the application and the statements and other
documents accompanying such annexure.

RULE 5. Manner of Provisional Attachment of Property.
— (1) Where the Settlement Commission orders attachment of property under
sub-section (1) of section 32G, it shall send a copy of such order to the
Commissioner of Central Excise having jurisdiction over the place in which the
applicant owns any movable or immovable property or resides or carries on his
business or has his bank account.

(2)On
receipt of the order referred to in sub-rule (1), the Commissioner may authorise
any officer subordinate to him and not below the rank of an Assistant
Commissioner of Central Excise to take steps to attach such property of the
applicant.

(3) The officer authorised under sub-rule (2) shall prepare
an inventory of the property attached and specify in it, in the case of the
immovable property the description of such property sufficient to identify it
and in case of the movable property, the place where such property is lodged or
kept and shall hand over a copy of the same to the applicant or to the person
from whose charge the property is attached.

(4) The officer authorised under sub-rule (2) shall send a
copy of the inventory so prepared each to the Commissioner of Central Excise and
the Settlement Commission.

RULE 6. Fee for Copies of reports. — Any person who
makes an application under section 32J , for obtaining copies of reports made by
any Central Excise Officer, shall pay a fee of five rupees per page of each
report or part thereof.

CONSUMER WELFARE FUND RULES, 1992

CONSUMER WELFARE FUND RULES, 1992

[M.F. (D.R.) Notification No.
29/92-C.E. (N.T.), dated 25-11-1992 as amended]

In exercise of the powers conferred by sub-section (2) of section 37, read with
section 12D of the Central Excises and Salt Act, 1944 (1 of 1944), the Central
Government, hereby makes the following rules, namely :-

1. Short title and commencement :-

(1) These rules
may be called the Consumer Welfare Fund Rules, 1992.

(2) They shall
come into force on the date of their publication in the
   Official Gazette.

2.Definitions. – In these rules, unless
the context otherwise requires, -

(a) “Act” means the [Central Excise
Act, 1944] (1 of 1944), or, as the case may be, the Customs Act, 1962 (52 of
1962);

[(b) “Applicant” means any agency/organisation
engaged in consumer welfare acitivities for a period of three years registered
under the Companies Act, 1956 (1 of 1956) or under any other law for the time
being in force, including village/ mandal/samiti level co-operatives of
consumers especially Women, Scheduled Castes and Scheduled Tribes, or any
industry as defined in the Industrial Disputes Act, 1947 (14 of 1947)
recommended by the Bureau to be engaged for a period of five years in viable and
useful research activity which has made, or is likely to make, significant
contribution in formulation of standard mark of the products of mass
consumption, [the Central Government or State Government], and includes a
consumer for the purpose of reimbursing legal expenses as referred to in clause
(d) of rule 8 of these rules;]

(c) “Application” means an
application in Form AI, appended to these rules;

(d) “Bureau” means the Bureau of
Indian Standards constituted under the Bureau of Indian Standards Act, 1986 (63
of 1986);

(e) “Central Consumer Protection
Council” means the Central Consumer Protection Council established under
sub-section (1) of section 4 of the Consumer Protection Act, 1986 (68 of 1986),
for promotion and protection of rights of consumers;

(f) “Committee” means the Committee
constituted under rule 5;

(g) “Consumer” has the same meaning
as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer
Protection Act, 1986 (68 of 1986), and includes consumer of goods on which duty
has been paid;

(h) “Consumer Welfare Fund” means the
fund established by the Central Government under sub-section (1) of section 12C
of the [Central Excise Act, 1944] (1 of 1944);

(i) “Duty” means the duty paid under
the Act;

[(ia) “Proper Officer” means the
officer having the power under the Act to make an order that the whole or any
part of the duty is refundable;]

(j) “Standard mark” shall have the
same meaning as assigned to it in clause (t) of section 2 of the Bureau of
Indian Standards Act, 1986 (63 of 1986);

(k) “Welfare of the Consumers”
includes promotion and protection of rights of consumers;

(l) Words and expressions used in the
rules and not defined but defined in the Consumer Protection Act, 1986 (68 of
1986) shall have the meanings respectively assigned to them in that Act.

3. Establishment of Consumer Welfare Fund :-

There shall be
established a Consumer Welfare Fund with the Central Government into which
credits of amounts of duty and income from investment along with other monies
specified in sub-section (2) of section 12C of the [Central Excise Act, 1944] (1
of 1944) shall be accredited :

Provided that
any amount having been credited to the Fund is ordered or directed as payable to
any claimant by orders of proper officer, appellate authority or court, shall be
paid from the Fund.

4. Maintenance of accounts and records of Consumer
Welfare Fund :-

Proper and
separate accounts in relation to the Consumer Welfare Fund shall be maintained
by the Central Government and shall be subject to audit by the Comptroller and
Auditor General of India.

5. Constitution of the Committee :-

(1) The Committee constituted by the
Central Government under sub-rule (2), shall make recommendations for proper
utilisation of the money credited to the Consumer Welfare Fund for the welfare
of the consumers, to carry out the purposes of these rules.


(2)
The
Committee shall consist of the following Members, namely :-


[(a)  
The
Secretary, Department of Consumer Affairs, who shall be the Chairman of the
Committee;

[(b)   Secretary, Department of Expenditure in the Ministry of Finance or the
Financial Adviser, Department of Consumer Affairs in the Ministry of Food, Civil
Supplies and Public Distribution, who shall be the Vice-Chairman of the
Committee;

(c)      Chairman, Central Board of Excise and Customs or an officer not below
the rank of a Joint Secretary in the Department of Revenue of Ministry of
Finance;

(d)     Member (Central Excise) of the Central Board of Excise and Customs or an
officer not below the rank of a Joint Secretary in the Department of Revenue of
Ministry of Finance;

(e)      Secretary/Joint Secretary/Economic Adviser (Monitoring) Department of
Rural Development];

[(f) Director General, Bureau of Indian Standards;

[(g) [The Additional Secretary or Joint Secretary incharge of Consumer Welfare
Fund, in the Department of Consumer Affairs, who shall also be the
Member-Secretary of the Committee] :]


[Provided that the Chairman or Vice-Chairman, as the case may be, may invite
representatives of the State Governments concerned and a nominee of the Consumer
Co-ordination Council to the meetings as and when necessary.]

(3) The Committee shall be a Standing
Committee.

[6. Procedure for conduct of business :-]


(1)
The
Committee shall meet as and when necessary, but not more than three months shall
intervene between any two meetings.

(2) The Committee shall meet at such
time and place as the Chairman, or in his absence the Vice-Chairman of the
Committee may deem fit.

(3) The meeting of the Committee
shall be presided over by the Chairman, and in the absence of the Chairman, the
Vice-Chairman shall preside over the meetings of the Committee.

(4) Each meeting of the Committee
shall be called, by giving notice in writing to every member of not less than
ten days from the date of issue of such notice.

(5) Every notice of the meeting of
the Committee shall specify the place and the day and hour of the meeting and
shall contain statement of business to be transacted thereat.

(6) No proceeding of the Committee
shall be valid, unless it is presided over by the Chairman or Vice-Chairman and
a minimum of [three] other members are present.

7. Powers and functions of the Committee :-


(1)
The
Committee shall have powers :-

(a) to require any applicant to produce before it, or
before a duly authorised Officer of the Central Government, or as the case may
be, the State Government, such books, accounts, documents, instruments, or
commodities in custody and control of the applicant, as may be necessary for
proper evaluation of the application;

(b) to require any applicant to allow entry and inspection of any premises, from
which activities claimed to be for the welfare of Consumers, are stated to be
carried on, to a duly authorised officer of the Central Government or, as the
case may be, State Government;

(c) to get the accounts of the applicants audited, for ensuring proper
utilisation of the grant;

(d) to require any applicant, in case of any default, or suppression of material
information on his part, to refund in lump-sum, the sanctioned grant to the
Committee, and to be subject to prosecution under the Act;

(e) to recover any sum due from any applicant in accordance with the provisions
of the Act;

(f) to require any applicant, or class of applicants to submit a periodical
report, indicating proper utilisation of the grant;

(g) to reject an application placed before it on the basis of involvement of
factual inconsistency, or inaccuracy in the material particulars;

(h) to recommend minimum financial assistance, by way of grant to an applicant,
having regard to his financial status, and importance and utility of nature of
activity under pursuit, after ensuring that the financial assistance provided
shall not be misutilised;

(i) to require Central Consumer Protection Council or the Bureau, to formulate
broad guidelines for considering the projects/ proposals for the purpose of
incurring expenditure from the Consumer Welfare Fund;

(j) to identify beneficial and safe sectors, where investments out of Consumer
Welfare Fund may be made and make recommendations, accordingly.

[(k)  to relax the conditions required for the period of engagement in consumer
welfare activities of an applicant as specified in clause (b) of rule 2;

(l)       to make guidelines for the management and administration of the
Consumer Welfare Fund.]

(2) The Committee shall not consider
an application, unless it has been inquired into, in material details and
recommended for consideration accordingly, by the Member-Secretary.

8. Specification of purposes for utilisation of
credits available in Consumer Welfare Fund :-

The Committee shall make
recommendations :-

(a)    for making available grants to
any applicant;

(b)    for making available grants
recommended by the Bureau for activities relating to standard marks, which may
be considered essential by the Central Government, for the welfare of the
consumers;

(c)     for investment of the money
available in the Consumer Welfare Fund;

(d)    for making available grants,
[on a selective basis] for reimbursing legal expenses incurred by a complainant,
or class of complainants in a consumer dispute, after its final adjudication;

(e)     for making available grants
for any other purpose recommended by the Central Consumer Protection Council,
[as may be considered appropriate by the Committee.]

[FORM – AI

[See Rule 2 (c) of Consumer
Welfare Fund Rules, 1992]



IMPORTANT :


Please fill up this form, furnishing
correct details sought for, based on verifiable true state of affairs
without causing suppression of any material information which, if resorted
to, shall entail prosecution under the Act.



Note :

All applications must be submitted along with
their enclosures in duplicate duly attested by any gazetted officer of the
Central or State Government.

1.


Name and full postal address of
the applicant


:

2.

Status of the applicant under
clause (b) of Rule 2

:

3.

Date of establishment

:

4.

Whether registered under the
Societies Registration Act, 1860 (21 of 1860) or any other relevant Act

:

5.

If yes, number and year of
registration (Attested copy of registration certificate to be enclosed)

:

6.

Whether the organisation is of
national or State level

:


7.

Number of Managing Committee
members together with list of names, addresses and occupation of the office
bearers

:

8.

Brief details of the
organisation, objectives and activities during the last three years

:

9.

Purpose for which the amount is
required (please state the details of the project and its proposed
implementation)

:

10.

Amount of grant required –
itemwise details under non-recurring, recurring to be enclosed

:

11.

Time Schedule of the activities
arranged

:

12.

The total amount incurred or
invested by the applicant, or likely to be incurred by the applicant

:

13.

Sources of funding of balance amount whether
the organisation is getting financial assistance from any other official or
non-official source, if yes, give details

:

14.

Details of prosecution, if any,
in a court of law launched against the applicant, during the last five years

:

15.

Copies of the following
documents (duly attested by a gazetted officer of the Central or State
Government) to be attached) -

:

(i)   Constitution of the organisation and Articles
of Association.

(ii)  Annual
reports of the organisation for last three years (please furnish separate Annual
Reports for each year).

(iii) Annual
Audited Statement of accounts for each of last 3 years duly signed by Chartered
Accountant. These Statements must bear the registration number and official seal
or stamp of the Chartered Accountant.


DECLARATION


(To be
signed by the applicant or its authorised agent)

The particulars heretofore given, are true and
correct. Nothing material has been suppressed. It is certified that I/we have
read the guidelines, terms and conditions governing the scheme and undertake to
abide by them on behalf of our organisation/institution. The financial
assistance, if provided, shall be put to the declared use, for promotion and
protection of rights of consumers or for standard marks. (Strike out whichever
is inapplicable).

                          APPLICANT

Dated  :
Station :

To

Member-Secretary

Committee (Consumer Welfare Fund)

Krishi Bhawan

New Delhi

         Recommendation of
Member-Secretary

Factual details furnished in the application have been verified in consultation
with Ministry/Department of agency who is/are administratively concerned in the
matter and found to be correct/incorrect. The claims of the applicant are
recommended for consideration by the Committee (Please give reasons in support
of your recommendation).

Member-Secretary
Committee (Consumer Welfare Fund)

Recommendation of the Committee

Recommended for grant of Rs. _____________ Rupees
________________ _______________________ (in words) from the Consumer Welfare
Fund as discussed in the meeting held on ___________ (date).


Chairman

Committee.
]

[Notification No. 47/99-C.E. (N.T.), dated 6-7-1999]

CENTRAL EXCISE (DETERMINATION OF RETAIL SALE PRICE OF EXCISABLE GOODS) RULES, 2008


CENTRAL EXCISE (DETERMINATION OF RETAIL

SALE
PRICE OF EXCISABLE GOODS)
RULES, 2008

[Notification No. 13/2008-C.E. (N.T.), dated 1-3-2008]

In exercise of the powers
conferred by section 37 read with sub-section (4) of section 4A of the Central
Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following
rules, namely :-


RULE 1.
(1) These rules may
be called the Central Excise (Determination of Retail Sale Price of Excisable
Goods) Rules, 2008.

(2)    They shall
come into force on the date of their publication in the Official Gazette.


RULE 2.
In
these rules, unless the context otherwise requires, -

(a)    ‘Act’
means the Central Excise Act, 1944 (1 of 1944);

(b)    ‘retail
sale price’ means the retail sale price as defined in section 4A of the Act; and

(c)     words and
expressions used in these rules and not defined but defined in the Act or any
other rules made under the Act shall have the meaning as assigned therein.


RULE 3. 
The retail sale
price of any excisable goods under sub-section (4) of section 4A of the Act,
shall be determined in accordance with these rules.

RULE 4. Where
a manufacturer removes the excisable goods specified under sub-section (1) of
section 4A of the Act, -

(a)    without
declaring the retail sale price on the packages of such goods; or

(b)    by
declaring the retail sale price, which is not the retail sale price as required
to be declared under the provisions of the Standards of Weights and Measures
Act, 1976 (60 of 1976) or rules made thereunder or any other law for the time
being in force; or

(c)     by
declaring the retail sale price but obliterates the same after their removal
from the place of manufacture,

then, the retail
sale price of such goods shall be ascertained in the following manner, namely :-

(i) if the
manufacturer has manufactured and removed identical goods, within a period of
one month, before or after removal of such goods, by declaring the retail sale
price, then, the said declared retail sale price shall be taken as the retail
sale price of such goods :

(ii) if the
retail sale price cannot be ascertained in terms of clause (i), the retail sale
price of such goods shall be ascertained by conducting the enquiries in the
retail market where such goods have normally been sold at or about the same time
of the removal of such goods from the place of manufacture :

Provided
that if more than one retail sale price is ascertained under clause (i) or
clause (ii), then, the highest of the retail sale price, so ascertained, shall
be taken as the retail sale price of all such goods.


Explanation.
– For the purposes of this rule, when retail sale price is
required to be ascertained based on market inquiries, the said inquiries shall
be carried out on sample basis.


RULE 5. 
Where a
manufacturer alters or tampers the retail sale price declared on the package of
goods after their removal from the place of manufacture, resulting into increase
in the retail sale price, then such increased retail sale price shall be taken
as the retail sale price of all goods removed during a period of one month
before and after the date of removal of such goods :


Provided
that where the
manufacturer alters or tampers the declared retail sale price resulting into
more than one retail sale price available on such goods, then, the highest of
such retail sale price shall be taken as the retail sale price of all such
goods.


RULE 6. 
If the retail sale
price of any excisable goods cannot be ascertained under these rules, the retail
sale price shall be ascertained in accordance with the principles and the
provisions of section 4A of the Act and the rules aforesaid.

CENVAT CREDIT RULES, 2004


CENVAT CREDIT RULES, 2004

[Notification No. 23/2004-C.E. (N.T.), dated 10-9-2004 as
amended]

In exercise of the powers conferred by section 37 of the
Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32
of 1994) and in supersession of the CENVAT Credit Rules, 2002 and the Service
Tax Credit Rules, 2002, except as respects things done or omitted to be done
before such supersession, the Central Government hereby makes the following
rules, namely :-

RULE 1. Short title, extent,
and commencement.
— (1) These rules may be called the CENVAT Credit Rules,
2004.

(2) They extend to the whole of

India
.

Provided that nothing
contained in these rules relating to availment and utilization of credit of
service tax shall apply to the State of

Jammu and Kashmir
.

(3) They shall come into force
from the date of their publication in the Official Gazette.

RULE 2. Definitions.

In these rules, unless the  context  otherwise requires, –

(a) ”capital goods” means :-

 (A)   the
following goods, namely :-

(i)    all goods falling under
Chapter 82, Chapter 84, Chapter 85, Chapter 90, [heading 6805, grinding wheels
and the like, and parts thereof falling under heading 6804] of the First
Schedule to the Excise Tariff Act;

(ii)   pollution control equipment;

(iii) components, spares and
accessories of the goods specified at (i) and (ii);

(iv)  moulds and dies, jigs and
fixtures;

(v)   refractories and refractory
materials;

(vi)  tubes and pipes and fittings
thereof; and

(vii)                storage tank,

used -

(1)      in the factory of the
manufacturer of the final products, but does not include any equipment or
appliance used in an office; or

(2)      for providing output
service;

(B)    motor vehicle registered in
the name of provider of output service for providing taxable service as
specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause
(105) of section 65 of the Finance Act;

[(C) dumpers or tippers, falling
under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985 (5
of 1986), registered in the name of provider of output service for providing
taxable services as specified in sub-clauses (zzza) and (zzzy) of clause (105)
of section 65 of the said Finance Act;]

(b) “Customs Tariff Act” means
the Customs Tariff Act, 1975 (51 of 1975);

(c) “Excise Act” means the
Central Excise Act, 1944 (1 of 1944);

(d) “exempted goods” means
excisable goods which are exempt from the whole of the duty of excise leviable
thereon, and includes goods which are chargeable to “Nil” rate of duty;

(e) “exempted services” means
taxable services which are exempt from the whole of the service tax leviable
thereon, and includes services on which no service tax is leviable under section
66 of the Finance Act;

(f) “Excise Tariff Act” means
the Central Excise Tariff Act, 1985 (5 of 1986);

(g) “Finance Act” means the
Finance Act, 1994 (32 of 1994);

(h) “final products“ means
excisable goods manufactured or produced  from input, or using input service;

(ij) “first stage dealer” means
a dealer, who purchases the goods directly from, -

(i)      the
manufacturer under the cover of an invoice issued in terms of the provisions of
Central Excise Rules, 2002 or from the depot of the said manufacturer, or from
premises of the consignment agent of the said manufacturer or from any other
premises from where the goods are sold by or on behalf of the said manufacturer,
under cover of an invoice; or

(ii)    an importer or from the
depot of an importer or from the premises of the consignment agent of the
importer, under cover of an invoice;

(k) ”input”
means -

(i)      all
goods, except light diesel oil, high speed diesel oil and motor spirit, commonly
known as petrol, used in or in relation to the manufacture of final products
whether directly or indirectly and whether contained in the final product or not
and includes lubricating oils, greases, cutting oils, coolants, accessories of
the final products cleared along with the final product, goods used as paint, or
as packing material, or as fuel, or for generation of electricity or steam used
in or in relation to manufacture of final products or for any other purpose,
within the factory of production;

(ii)    all goods, except light
diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and
motor vehicles, used for providing any output service;


Explanation
1. – The light diesel oil, high speed diesel oil or
motor spirit, commonly known as petrol, shall not be treated as an input for any
purpose whatsoever.


Explanation 2. – Input include goods used in the
manufacture of capital goods which are further used in the factory of the
manufacturer [but shall not include cement, angles, channels, Centrally Twisted
Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used
for construction of factory shed, building or laying of foundation or making of
structures for support of capital goods];

(l)“input
service” means any service, -

(i)      used by a
provider of taxable service for providing an output service, or

(ii)    used by the manufacturer,
whether directly or indirectly, in or in relation to the manufacture of final
products and [clearance of final products upto the place of removal,]

and includes
services used in relation to setting up, modernization, renovation or repairs of
a factory, premises of provider of output service or an office relating to such
factory or premises, advertisement or sales promotion, market research, storage
upto the place of removal, procurement of inputs, activities relating to
business, such as accounting, auditing, financing, recruitment and quality
control, coaching and training, computer networking, credit rating, share
registry, and security, inward transportation of inputs or capital goods and
outward transportation upto the place of removal;

(m) “input
service distributor” means an office of the manufacturer or producer of final
products or pro-vider of output service, which receives invoices issued under
rule 4A of the Service Tax Rules, 1994 towards pur-chases of input services and
issues invoice, bill or, as the case may be, challan for the purposes of
distributing the credit of service tax paid on the said services to such
manufacturer or producer or provider, as the case may be;

(n) “job
work” means processing or working upon of raw material or  semi-finished goods
supplied to the job worker, so as to complete a part or whole of the process
resulting in the manufacture or finishing of an article or any operation which
is essential for aforesaid process and the expression “job worker” shall be
construed accordingly;

[(na) “large
tax payer” shall have the meaning assigned to it in the Central Excise Rules,
2002;]

[[(naa)]
“manufacturer” or “producer” in relation to articles of jewellery falling under
heading 7113 of the First Schedule to the Excise Tariff Act, includes a person
who is liable to pay duty of excise leviable on such goods under sub-rule (1) of
rule 12AA of the Central Excise Rules, 2002;]

(o) “notification” means the notification published in the Official Gazette;

(p) “output
service” means [any taxable service, excluding the taxable service referred to
in sub-clause (zzp) of clause (105) of section 65 of the Finance Act, provided
by the provider of taxable service], to a customer, client, subscriber, policy
holder or any other person, as the case may be, and the expressions ‘provider’
and ‘provided’ shall be construed accordingly;

[*      *      *      *      *]

(q) “person
liable for paying service tax” has the meaning as assigned to it in clause (d)
of sub-rule (1) of rule 2 of the Service Tax Rules, 1994;

(r) “provider of taxable service” include a person liable for paying service
tax;

(s) “second
stage dealer” means a dealer who purchases the goods from a first stage dealer;

(t) words
and expressions used in these rules and not defined but defined in the Excise
Act or the Finance Act shall have the meanings respectively assigned to them in
those Acts.

RULE 3. CENVAT
credit.
— (1) A manufacturer or producer of final products or a provider of
taxable service shall be allowed to take credit (hereinafter referred to as the
CENVAT credit) of -

(i)         the
duty of excise specified in the First Schedule to the Excise Tariff Act,
leviable under the Excise Act;

(ii)       the
duty of excise specified in the Second Schedule to the Excise Tariff Act,
leviable under the Excise Act;

(iii)      the
additional duty of excise leviable under section 3 of the Additional Duties of
Excise (Textile and Textile Articles) Act, 1978 (40 of 1978);

(iv)      the
additional duty of excise leviable under section 3 of the Additional Duties of
Excise (Goods of Special Importance) Act, 1957 (58 of 1957);

(v)        the
National Calamity Contingent duty leviable under section 136 of the Finance Act,
2001 (14 of 2001);

(vi)      the
Education Cess on excisable goods leviable under section 91 read with section 93
of the Finance (No. 2) Act, 2004 (23 of 2004);

[(via) the
Secondary and Higher Education Cess on excisable goods leviable under section
136 read with section 138 of the Finance Act, 2007 (22 of 2007);]

(vii)     the
additional duty leviable under section 3 of the Customs Tariff Act, equivalent
to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) [,
(vi) and (via)];

[(viia) the
additional duty leviable under sub-section (5) of section 3 of the Customs
Tariff Act [ * * * ] :


Provided that a provider of taxable service shall not be eligible to take
credit of such additional duty;]

(viii) the
additional duty of excise, leviable under section 157 of the Finance Act, 2003
(32 of 2003);

(ix)      the
service tax leviable under section 66 of the Finance Act;

(x)        the
Education Cess on taxable services leviable under section 91 read with section
95 of the Finance (No. 2) Act, 2004 (23 of 2004); and

[(xa) the
Secondary and Higher Education Cess on taxable services leviable under section
136 read with section 140 of the Finance Act, 2007 (22 of 2007); and]

[(xi) the
additional duty of excise leviable under [section 85 of Finance Act, 2005 (18 of
2005)].] :

[Provided
that the CENVAT credit shall be allowed to be taken of the amount equal to
central excise duty paid on the capital goods at the time of debonding of the
unit in terms of the para 8 of notification No. 22/2003-Central Excise,
published in the Gazette of India, part II, Section 3, sub-section (i), vide
number G.S.R. 265(E), dated, the 31st March, 2003.]

paid on -

(i)         any
input or capital goods received in the factory of manufacture of final product
or premises of the provider of output service on or after the 10th day of
September, 2004; and

(ii)       any
input service received by the manufacturer of final product or by the provider
of output services on or after the 10th day of September, 2004,

including the
said duties, or tax, or cess paid on any input or input service, as the case may
be, used in the manufacture of intermediate products, by a job-worker availing
the benefit of exemption specified in the notification of the Government of
India in the Ministry of Finance (Department of Revenue), No. 214/86-Central
Excise, dated the 25th March, 1986, published in the Gazette of India vide
number G.S.R. 547(E), dated the 25th March, 1986, and received by the
manufacturer for use in, or in relation to, the manufacture of final product, on
or after the 10th day of September, 2004.


Explanation.
For the removal of doubts it is clarified that the
manufacturer of the final products and the provider of output service shall be
allowed CENVAT credit of additional duty leviable under section 3 of the Customs
Tariff Act on goods falling under heading 9801 of the First Schedule to the
Customs Tariff Act.

(2) Notwithstanding anything contained in sub-rule (1), the manufacturer or
producer of final products shall be allowed to take CENVAT credit of the duty
paid on inputs lying in stock or in process or inputs contained in the final
products lying in stock on the date on which any goods manufactured by the said
manufacturer or producer cease to be exempted goods or any goods become
excisable.

(3) Notwithstanding anything contained in sub-rule (1), in relation to a service
which ceases to be an exempted service, the provider of the output service shall
be allowed to take CENVAT credit of the duty paid on the inputs received on and
after the 10th day of September, 2004 and lying in stock on the date on which
any service ceases to be an exempted services and used for providing such
service.

(4) The CENVAT credit may be utilized for payment of -

(a)        any duty of excise on any final product; or

(b)        an amount equal to CENVAT credit taken on inputs if such inputs are
removed as such or after being partially processed; or

(c)        an amount equal to the CENVAT credit taken on capital goods if such
capital goods are removed as such; or

(d)        an amount under sub-rule (2) of rule 16 of Central Excise Rules,
2002; or

(e)        service tax on any output service :


Provided that while paying duty of excise or service tax, as the case may
be, the CENVAT credit shall be utilized only to the extent such credit is
available on the last day of the month or quarter, as the case may be, for
payment of duty or tax relating to that month or the quarter, as the case may be
:


Provided further that the CENVAT credit of the duty, or service tax, paid
on the inputs, or input services, used in the manufacture of final products
cleared after availing of the exemption under the following notifications of
Government of India in the Ministry of Finance (Department of Revenue), -

(i)         No.
32/99-Central Excise, dated the 8th July, 1999 [G.S.R. 508(E), dated 8th July,
1999];

(ii)       No.
33/99-Central Excise, dated the 8th July,  1999 [G.S.R. 509(E), dated 8th July,
1999];

(iii)      No.
39/2001-Central Excise, dated the 31st July, 2001 [G.S.R. 565 (E), dated the
31st July, 2001];

(iv)      No.
56/2002-Central Excise, dated the 14th November, 2002 [G.S.R. 764(E), dated the
14th November, 2002];

(v)        No.
57/2002-Central Excise, dated 14th November, 2002 [G.S.R. 765(E), dated the 14th
November, 2002];

(vi)      No.
56/2003-Central Excise, dated the 25th June, 2003 [G.S.R. 513 (E), dated the
25th June, 2003]; and

(vii)     No.
71/2003-Central Excise, dated the 9th September, 2003 [G.S.R. 717 (E), dated the
9th September, 2003],

shall, respectively, be utilized
only for payment of duty on final products, in respect of which exemption under
the said respective notifications is availed of :

[Provided also that no credit of the additional duty leviable under
sub-section (5) of section 3 of the Customs Tariff Act, [ * * * ] shall be
utilised for payment of service tax on any output service :

[Provided also that the CENVAT credit of any duty specified in sub-rule
(1), except the National Calamity Contingent duty in item (v) thereof, shall not
be utilized for payment of the said National Calamity Contingent duty on goods
falling under tariff items 8517 12 10 and 8517 12 90 respectively of the First
Schedule of the Central Excise Tariff :]

[Provided also that the CENVAT credit of any duty specified in sub-rule
(1) shall not be utilized for payment of the Clean Energy Cess leviable under
section 83 of the Finance Act, 2010 (14 of 2010):]


Provided also that the CENVAT credit of any duty mentioned in sub-rule
(1), other than credit of additional duty of excise leviable under [section 85
of Finance Act, 2005 (18 of 2005)], shall not be utilised for payment of said
additional duty of excise on final products.]

(5) When inputs or capital goods, on which CENVAT credit has been taken, are
removed as such from the factory, or premises of the provider of output service,
the manufacturer of the final products or provider of output service, as the
case may be, shall pay an amount equal to the credit availed in respect of such
inputs or capital goods and such removal shall be made under the cover of an
invoice referred to in rule 9 :


Provided that such payment shall not be required to be made where any
inputs [or capital goods] are removed outside the premises of the provider of
output service for providing the output service :

[ *  *  *  * ]

[Provided further that if the capital goods, on which CENVAT Credit has
been taken, are removed after being used, the manufacturer or provider of output
services shall pay an amount equal to the CENVAT Credit taken on the said
capital goods reduced by the percentage points calculated by straight line
method as specified below for each quarter of a year or part thereof from the
date of taking the CENVAT Credit, namely :-

(a) for computers and computer peripherals :

for each quarter in the first year @ 10%

for each quarter in the second year @ 8%

for each quarter in the third year @5%

for each quarter in the fourth and fifth year @1%

(b) for capital goods, other than computers and computer peripherals @ 2.5% for
each quarter.]

[(5A) If the capital goods are cleared as waste and scrap, the manufacturer
shall pay an amount equal to the duty leviable on transaction value.]

[(5B) If the value of any,

(i)      input, or

(ii)    capital goods before being put to use,

on which
CENVAT credit has been taken is written off fully or where any provision to
write off fully has been made in the books of account, then the manufacturer or
service provider, as the case may be, shall pay an amount equivalent to the
CENVAT credit taken in respect of the said input or capital goods :


Provided that if the said input or capital goods is subsequently used in
the manufacture of final products or the provision of taxable services, the
manufacturer or output service provider, as the case may be, shall be entitled
to take the credit of the amount equivalent to the CENVAT credit paid earlier
subject to the other provisions of these rules.]

[(5C) Where on any goods manufactured or produced by an assessee, the payment of
duty is ordered to be remitted under rule 21 of the Central Excise Rules, 2002,
the CENVAT credit taken on the inputs used in the manufacture or production of
said goods shall be reversed.]

(6) The amount paid under [sub-rule (5) and sub-rule (5A)] shall be eligible as
CENVAT credit as if it was a duty paid by the person who removed such goods
under [sub-rule (5) and sub-rule (5A)].

(7)Notwithstanding anything
contained in sub-rule (1) and sub-rule (4), -

 (a)       CENVAT credit in respect of inputs or capital goods produced or
manufactured, by a hundred per cent. export-oriented undertaking or by a unit in
an Electronic Hardware Technology Park or in a Software Technology Park other
than a unit which pays excise duty levied under section 3 of the Excise Act read
with serial numbers 3, 5, 6 and 7 of notification No. 23/2003-Central Excise,
dated the 31st March, 2003, [G.S.R.  266(E), dated the 31st March, 2003] and
used in the manufacture of the final products or in providing an output service,
in any other place in India, in case the unit pays excise duty under section 3
of the Excise Act read with serial number 2 of the notification No.
23/2003-Central Excise, dated the 31st March, 2003, [G.S.R. 266(E), dated the
31st March, 2003],  shall be admissible equivalent to the amount calculated in
the following manner namely :-

             Fifty per cent. of [X multiplied by {(l+BCD/100) multiplied by (CVD/100)}],
where BCD and CVD denote ad valorem rates, in per cent., of basic customs
duty and additional duty of customs leviable on the inputs or the capital goods
respectively and X denotes the assessable value :

             [Provided that the CENVAT credit in respect of inputs and
capital goods cleared on or after 1st March, 2006 from an export oriented
undertaking or by a unit in Electronic Hardware Technology Park or in a Software
Technology Park, as the case may be, on which such unit pays excise duty under
section 3 of the Excise Act read with serial number 2 of the notification no.
23/2003-Central Excise dated 31st March, 2003 [G.S.R. 266(E), dated the 31st
March, 2003] shall be equal to [X multiplied by [(1+BCD/200) multiplied by (CVD/100)]]
:

[Provided further that the CENVAT credit in respect of inputs and capital
goods cleared on or after the 7th September, 2009 from an export-oriented
undertaking or by a unit in
Electronic
Hardware
Technology
Park or in a

Software
Technology
Park
, as the case may be,
on which such undertaking or unit has paid -

(A)  excise
duty leviable under section 3 of the Excise Act read with serial number 2 of the
notification no. 23/2003-Central Excise, dated 31st March, 2003 [G.S.R. 266(E),
dated the 31st March, 2003]; and

(B)   the
Education Cess leviable under section 91 read with section 93 of the Finance
(No. 2) Act, 2004 and the Secondary and Higher Education Cess leviable under
section 136 read with section 138 of the Finance Act, 2007, on the excise duty
referred to in (A),

shall be
the aggregate of -

(I)    that portion of excise duty
referred to in (A), as is equivalent to -

(i)     the additional duty leviable under sub-section (1) of section 3 of the
Customs Tariff Act, which is equal to the duty of excise under clause (a) of
sub-section (1) of section 3 of the Excise Act;

(ii)    the additional duty leviable under sub-section (5) of section 3 of the
Customs Tariff Act; and

(II)   the Education Cess and the
Secondary and Higher Education Cess referred to in (B).]

[(b) CENVAT
credit in respect of -

(i)      the
additional duty of excise leviable under section 3 of the Additional Duties of
Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(ii)    the
National Calamity Contingent duty leviable under section 136 of the Finance Act,
2001 (14 of 2001);

(iii)   the
education cess on excisable goods leviable under section 91 read with section 93
of the Finance (No. 2) Act, 2004 (23 of 2004);

[(iiia) the
Secondary and Higher Education Cess on excisable goods leviable under section
136 read with section 138 of the Finance Act, 2007 (22 of 2007);]

(iv)   the
additional duty leviable under section 3 of the Customs Tariff Act, equivalent
to the duty of excise specified under items (i), (ii) and (iii) above;

(v)     the
additional duty of excise leviable under section 157 of the Finance Act, 2003
(32 of 2003);

(vi)   the
education cess on taxable services leviable under section 91 read with section
95 of the Finance (No. 2) Act, 2004 (23 of 2004); and

[(via) the
Secondary and Higher Education Cess on taxable services leviable under section
136 read with section 140 of the Finance Act, 2007 (22 of 2007); and]

(vii)  the
additional duty of excise leviable under [section 85 of Finance Act, 2005 (18 of
2005)],

[shall be
utilised towards payment of duty of excise or as the case may be, of service tax
leviable under the said Additional Duties of Excise (Textiles and Textile
Articles) Act, 1978 or the National Calamity Contingent duty leviable under
section 136 of the Finance Act, 2001 (14 of 2001), or the education cess on
excisable goods leviable under section 91 read with section 93 of the said
Finance (No. 2) Act, 2004 (23 of 2004), or the Secondary and Higher Education
Cess on excisable goods leviable under section 136 read with section 138 of the
Finance Act, 2007 (22 of 2007) or the additional duty of excise leviable under
section 157 of the Finance Act, 2003 (32 of 2003), or the education cess on
taxable services leviable under section 91 read with section 95 of the said
Finance (No. 2) Act, 2004 (23 of 2004), or the Secondary and Higher Education
Cess on taxable services leviable under section 136 read with section 140 of the
Finance Act, 2007 (22 of 2007), or the additional duty of excise leviable under
section 85 of the Finance Act, 2005 (18 of 2005) respectively, on any final
products manufactured by the manufacturer or for payment of such duty on inputs
themselves, if such inputs are removed as such or after being partially
processed or on any output service :]

[Provided that the credit of the education cess on excisable goods and
the education cess on taxable services can be utilized, either for payment of
the education cess on excisable goods or for the payment of the education cess
on taxable services :


Provided further that the credit of the Secondary and Higher Education
Cess on excisable goods and the Secondary and Higher Education Cess on taxable
services can be utilized, either for payment of the Secondary and Higher
Education Cess on excisable goods or for the payment of the Secondary and Higher
Education Cess on taxable services.]


Explanation. - For the removal of doubts, it is hereby
declared that the credit of the additional duty of excise leviable under section
3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58
of 1957) paid on or after the 1st day of April, 2000, may be utilised towards
payment of duty of excise leviable under the First Schedule or the Second
Schedule to the Excise Tariff Act.]

(c)        the CENVAT credit, in respect of additional duty
leviable under section 3 of the Customs Tariff Act, paid on marble slabs or
tiles falling under [tariff items 2515 12 20 and 2515 12 90 respectively] of the
First Schedule to the Excise Tariff Act shall be allowed to the extent of thirty
rupees per square meter;


Explanation. - Where the provisions of any other rule or
notification provide for grant of whole or part exemption on condition of
non-availability of credit of duty paid on any input or capital goods, or of
service tax paid on input service, the provisions of such other rule or
notification shall prevail over the provisions of these rules.


RULE 4. Conditions for allowing CENVAT credit.
— (1) The CENVAT credit in
respect of inputs may be taken immediately on receipt of the inputs in the
factory of the manufacturer or in the premises of the provider of output service
:

[Provided
that in respect of final products, namely, articles of jewellery falling under
heading 7113 of the First Schedule to the Excise Tariff Act, the CENVAT credit
of duty paid on inputs may be taken immediately on receipt of such inputs in the
registered premises of the person who get such final products manufactured on
his behalf, on job work basis, subject to the condition that the inputs are used
in the manufacture of such final product by the job worker.]

(2)(a) The
CENVAT credit in respect of capital goods received in a factory or in the
premises of the provider of output service at any point of time in a given
financial year shall be taken only for an amount not exceeding fifty per cent.
of the duty paid on such capital goods in the same financial year :

Provided
that the CENVAT credit in respect of capital goods shall be allowed for the
whole amount of the duty paid on such capital goods in the same financial year
if such capital goods are cleared as such in the same financial year.

[Provided
further that the CENVAT credit of the additional duty leviable under sub-section
(5) of section 3 of the Customs Tariff Act, [ *  *  *  *] in respect of capital
goods shall be allowed immediately on receipt of the capital goods in the
factory of a manufacturer.]

[Provided
also that where an assessee is eligible to avail of the exemption under a
notification based on the value of clearances in a financial year, the CENVAT
credit in respect of capital goods received by such assessee shall be allowed
for the whole amount of the duty paid on such capital goods in the same
financial year.


Explanation.
- For the removal of doubts, it is hereby clarified that an
assessee shall be “eligible” if his aggregate value of clearances of all
excisable goods for home consumption in the preceding financial year computed in
the manner specified in the said notification did not exceed rupees four hundred
lakhs.]

(b) The
balance of CENVAT credit may be taken in any financial year subsequent to the
financial year in which the capital goods were received in the factory of the
manufacturer, or in the premises of the provider of output service, if the
capital goods, other than components, spares and accessories, refractories and
refractory materials, moulds and dies and goods falling under [heading 6805,
grinding wheels and the like, and parts thereof falling under heading 6804] of
the First Schedule to the Excise Tariff Act, are in the possession of the
manufacturer of final products, or provider of output service in such subsequent
years.


Illustration. -
A manufacturer received machinery on the 16th day of April,
2002 in his factory. CENVAT of two lakh rupees is paid on this machinery. The
manufacturer can take credit up to a maximum of one lakh rupees in the financial
year 2002-2003, and the balance in subsequent years.

(3) The
CENVAT credit in respect of the capital goods shall be allowed to a
manufacturer, provider of output service even if the capital goods are acquired
by him on lease, hire purchase or loan agreement, from a financing company.

(4) The
CENVAT credit in respect of capital goods shall not be allowed in respect of
that part of the value of capital goods which represents the amount of duty on
such capital goods, which the manufacturer or provider of output service claims
as depreciation under section 32 of the Income-tax Act, 1961 (43 of 1961).

(5)(a) The
CENVAT credit shall be allowed even if any inputs or capital goods as such or
after being partially processed are sent to a job worker for further processing,
testing, repair, re-conditioning [, or for the manufacture of intermediate goods
necessary for the manufacture of final products] or any other purpose, and it is
established from the records, challans or memos or any other document produced
by the manufacturer or provider of output service taking the CENVAT credit that
the goods are received back in the factory within one hundred and eighty days of
their being sent to a job worker and if the inputs or the capital goods are not
received back within one hundred eighty days, the manufacturer or provider of
output service shall pay an amount equivalent to the CENVAT credit attributable
to the inputs or capital goods by debiting the CENVAT credit or otherwise, but
the manufacturer or provider of output service can take the CENVAT credit again
when the inputs or capital goods are received back in his factory or in the
premises of the provider of output service.

[(b) The
CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and
dies sent by a manufacturer of final products to,-

(i)         another manufacturer for
the production of goods; or

(ii)       a job worker for the
production of goods on his behalf,

according to his specifications.]

(6) The
[Deputy Commissioner of Central Excise or the Assistant Commissioner of Central
Excise, as the case may be,] having jurisdiction over the factory of the
manufacturer of the final products who has sent the input or partially processed
inputs outside his factory to a job-worker may, by an order, which shall be
valid for a financial year, in respect of removal of such input or partially
processed input, and subject to such conditions as he may impose in the interest
of revenue including the manner in which duty, if leviable, is to be paid, allow
final products to be cleared from the premises of the job-worker.

(7) The CENVAT
credit in respect of input service shall be allowed, on or after the day which
payment is made of the value of input service and the service tax paid or
payable as is indicated in invoice, bill or, as the case may be, challan
referred to in rule 9.

RULE
[5. Refund of CENVAT credit.
– Where any input or input service is used in
the manufacture of final product which is cleared for export under bond or
letter of undertaking, as the case may be, or used in the intermediate product
cleared for export, or used in providing output service which is exported, the
CENVAT credit in respect of the input or input service so used shall be allowed
to be utilized by the manufacturer or provider of output service towards payment
of,

(i)         duty of excise on any final product cleared for home consumption or
for export on payment of duty; or

(ii)       service tax on output service,

and where for any
reason such adjustment is not possible, the manufacturer or the provider of
output service shall be allowed refund of such amount subject to such
safeguards, conditions and limitations, as may be specified, by the Central
Government, by notification :

Provided
that no refund of credit shall be allowed if the manufacturer or provider of
output service avails of drawback allowed under the Customs and Central Excise
Duties Drawback Rules, 1995, or claims rebate of duty under the Central Excise
Rules, 2002, in respect of such duty; or claims rebate of service tax under the
Export of Service Rules, 2005 in respect of such tax.

Provided
further that no credit of the additional duty leviable under sub-section (5) of
section 3 of the Customs Tariff Act shall be utilised for payment of service tax
on any output service.


Explanation :

For the purposes of this rule, the words ‘output service
which is exported’ means the output service exported in accordance with the
Export of Services Rules, 2005.]

RULE [5A.Refund
of CENVAT credit to units in specified areas.
— Notwithstanding anything
contrary contained in these rules, where a manufacturer has cleared final
products in terms of notification of the Government of India in the Ministry of
Finance (Department of Revenue) No. 20/2007-Central Excise, dated the 25th
April, 2007 and is unable to utilize the CENVAT credit of duty taken on inputs
required for manufacture of final products specified in the said notification,
other than final products which are exempt or subject to nil rate of duty, for
payment of duties of excise on said final products, then the Central Government
may allow the refund of such credit subject to such procedure, conditions and
limitations, as may be specified by notification.


Explanation :
For the purposes of this rule, “duty” means the duties
specified in sub-rule (1) of rule 3 of these rules.]

RULE
6. Obligation of manufacturer of dutiable and exempted goods and provider of
taxable and exempted services.
— (1) The CENVAT credit shall not be allowed
on such quantity of input or input service which is used in the manufacture of
[exempted goods or for provision of exempted services,] except in the
circumstances mentioned in sub-rule (2).

[Provided
that the CENVAT credit on inputs shall not be denied to job worker referred to
in rule 12AA of the Central Excise Rules, 2002, on the ground that the said
inputs are used in the manufacture of goods cleared without payment of duty
under the provisions of that rule.]

(2) Where a
manufacturer or provider of output service avails of CENVAT credit in respect of
any inputs or input services, [ * * * ], and manufactures such final products or
provides such output service which are chargeable to duty or tax as well as
exempted goods or services, then, the manufacturer or provider of output service
shall maintain separate accounts for receipt, consumption and inventory of input
and input service meant for use in the manufacture of dutiable final products or
in providing output service and the quantity of input meant for use in the
manufacture of exempted goods or services and take CENVAT credit only on that
quantity of input or input service which is intended for use in the manufacture
of dutiable goods or in providing output service on which service tax is
payable.

[(3) Notwithstanding anything contained in sub-rules (1) and (2), the
manufacturer of goods or the provider of output service, opting not to maintain
separate accounts, shall follow either of the following options, as applicable
to him, namely :-

[(i)   the manufacturer of goods shall pay an amount equal to five per cent. of
value of the exempted goods and the provider of output service shall pay an
amount equal to six per cent. of value of the exempted services; or]

(ii)       the manufacturer of goods or the provider of output service  shall
pay an amount equivalent to the CENVAT credit attributable to inputs and input
services used in, or in relation to, the manufacture of exempted goods or for
provision of exempted services subject to the conditions and procedure specified
in sub-rule (3A).


Explanation I. – If the manufacturer of goods or the provider of
output service, avails any of the option under this sub-rule, he shall exercise
such option for all exempted goods manufactured by him or, as the case may be,
all exempted services provided by him, and such option shall not be withdrawn
during the remaining part of the financial year.


Explanation II. – For removal of doubt, it is hereby clarified
that the credit shall not be allowed on inputs and input services used
exclusively for the manufacture of exempted goods or provision of exempted
service.

(3A) For
determination and payment of amount payable under clause (ii) of sub-rule (3),
the manufacturer of goods or the provider of output service shall follow the
following procedure and conditions, namely :-

(a)        while
exercising this option, the manufacturer of goods or the provider of output
service shall intimate in writing to the Superintendent of Central Excise giving
the following particulars, namely :-

(i)      name,
address and registration No. of the manufacturer of goods or provider of output
service;

(ii)    date from
which the option under this clause is exercised or proposed to be exercised;

(iii)  
description of dutiable goods or taxable services;

(iv)   description
of exempted goods or exempted services;

(v)     CENVAT
credit of inputs and input services lying in balance as on the date of
exercising the option under this condition;

(b)        the
manufacturer of goods or the provider of output service shall, determine and
pay, provisionally, for every month,-

(i)      the
amount equivalent to CENVAT credit attributable to inputs used in or in relation
to manufacture of exempted goods, denoted as A;

(ii)    the amount
of CENVAT credit attributable to inputs used for provision of exempted services
(provisional)= (B/C) multiplied by D, where B denotes the total value of
exempted services provided during the preceding financial year, C denotes the
total value of dutiable goods manufactured and removed plus the total value of
taxable services provided plus the total value of exempted services provided,
during the preceding financial year and D denotes total CENVAT credit taken on
inputs during the month minus A;

(iii)   the amount
attributable to input services used in or in relation to manufacture of exempted
goods or provision of exempted services (provisional) = (E/F) multiplied by G,
where E denotes total value of exempted services provided plus the total value
of exempted goods manufactured and removed during the preceding financial year,
F denotes total value of taxable and exempted services provided, and total value
of dutiable and exempted goods manufactured and removed, during the preceding
financial year, and G denotes total CENVAT credit taken on input services during
the month;

(c)        the
manufacturer of goods or the provider of output service, shall determine finally
the amount of CENVAT credit attributable to exempted goods and exempted services
for the whole financial year in the following manner, namely:-

(i)      the amount of CENVAT
credit attributable to inputs used in or in relation to manufacture of exempted
goods, on the basis of total quantity of inputs used in or in relation to
manufacture of said exempted goods, denoted as H;

(ii)    the amount of CENVAT credit
attributable to inputs used for provision of exempted services = (J/K)
multiplied by L, where J denotes the total value of exempted services provided
during the financial year, K denotes the total value of dutiable goods
manufactured and removed plus the total value of taxable services provided plus
the total value of exempted services provided, during the financial year and L
denotes total CENVAT credit taken on inputs during the financial year minus H;

(iii)   the amount attributable to
input services used in or in relation to manufacture of exempted goods or
provision of exempted services = (M/N) multiplied by P, where [M] denotes total
value of exempted services provided plus the total value of exempted goods
manufactured and removed during the financial year, 1[N] denotes
total value of taxable and exempted services provided, and total value of
dutiable and exempted goods manufactured and removed, during the financial year,
and 1[P] denotes total CENVAT credit taken on input services during
the financial year;

(d)       the
manufacturer of goods or the provider of output service, shall pay an amount
equal to the difference between the aggregate amount determined as per condition
(c) and the aggregate amount determined and paid as per condition (b), on or
before the 30th June of the succeeding financial year, where the amount
determined as per condition (c) is more than the amount paid;

(e)        the
manufacturer of goods or the provider of output service, shall, in addition to
the amount short-paid, be liable to pay interest at the rate of twenty-four per
cent. per annum from the due date, i.e., 30th June till the date of payment,
where the amount short-paid is not paid within the said due date;

(f)         where
the amount determined as per condition (c) is less than the amount determined
and paid as per condition (b), the said manufacturer of goods or the provider of
output service may adjust the excess amount on his own, by taking credit of such
amount;

(g)        the manufacturer of
goods or the provider of output service shall intimate to the jurisdictional
Superintendent of Central Excise, within a period of fifteen days from the date
of payment or adjustment, as per condition (d) and (f) respectively, the
following particulars, namely :-

(i)      details of CENVAT credit
attributable to exempted goods and exempted services, monthwise, for the whole
financial year, determined provisionally as per condition (b),

(ii)    CENVAT credit attributable
to exempted goods and exempted services for the whole financial year, determined
as per condition (c),

(iii)   amount short paid
determined as per condition (d), alongwith the date of payment of the amount
short-paid,

(iv)   interest payable and paid,
if any, on the amount short-paid, determined as per condition (e), and

(v)     credit taken on account of
excess payment, if any, determined as per condition (f);

(h)       where the amount
equivalent to CENVAT credit attributable to exempted goods or exempted services
cannot be determined provisionally, as prescribed in condition (b), due to
reasons that no dutiable goods were manufactured and no taxable service was
provided in the preceding financial year, then the manufacturer of goods or the
provider of output service is not required to determine and pay such amount
provisionally for each month, but shall determine the CENVAT credit attributable
to exempted goods or exempted services for the whole year as prescribed in
condition (c) and pay the amount so calculated on or before 30th June of the
succeeding financial year.

(i)         where the amount
determined under condition (h) is not paid within the said due date, i.e., the
30th June, the manufacturer of goods or the provider of output service shall, in
addition to the said amount, be liable to pay interest at the rate of twenty
four per cent. per annum from the due date till the date of payment.



Explanation
I.
– “Value” for the purpose of
sub-rules (3) and (3A) shall have the same meaning assigned to it under section
67 of the Finance Act, 1994 read with rules made thereunder or, as the case may
be, the value determined under section 4 or 4A of the Central Excise Act, 1944
read with rules made thereunder.

Explanation
II.
– The amount mentioned in sub-rules (3) and (3A), unless specified
otherwise, shall be paid by the manufacturer of goods or the provider of output
service by debiting the CENVAT credit or otherwise on or before the 5th day of
the following month except for the month of March, when such payment shall be
made on or before the 31st day of the month of March.

Explanation
III.
- If the manufacturer of goods or the provider of output
service fails to pay the amount payable under sub-rule (3) or as the case may be
sub-rule (3A), it shall be recovered, in the manner as provided in rule 14, for
recovery of CENVAT credit wrongly taken.]

(4) No CENVAT credit shall be
allowed on capital goods which are used exclusively in the manufacture of
exempted goods or in providing exempted services, other than the final products
which are exempt from the whole of the duty of excise leviable thereon under any
notification where exemption is granted based upon the value or quantity of
clearances made in a financial year.

(5) Notwithstanding anything
contained in sub-rules (1), (2) and (3), credit of the whole of service tax paid
on taxable service as specified in sub-clause (g), (p), (q), (r), (v), (w), (za),
(zm), (zp), (zy), (zzd), (zzg), (zzh), (zzi), (zzk), (zzq) and (zzr) of clause
(105) of section 65 of the Finance Act shall be allowed unless such service is
used exclusively in or in relation to the manufacture of exempted goods or
providing exempted services.

(6) The provisions of sub-rules
(1), (2), (3) and (4) shall not be applicable in case the excisable goods
removed without payment of duty are either -

[(i) cleared to a unit in a special
economic zone or to a developer of a special economic zone for their authorized
operations; or]

(ii)       cleared to a hundred per
cent. export-oriented undertaking; or

(iii)      cleared to a unit in an
Electronic
Hardware
Technology
Park or

Software
Technology
Park
; or

(iv)      supplied to the United
Nations or an international organization for their official use or supplied to
projects funded by them, on which exemption of duty is available under
notification of the Government of India in the Ministry of Finance (Department
of Revenue) No. 108/95-Central Excise, dated the 28th August, 1995, number G.S.R.
602 (E), dated the 28th August, 1995; or

[(iva)
supplied for the use of foreign diplomatic missions or consular missions
or career consular offices or diplomatic agents in terms of the provisions of
notification No. 6/2006-Central Excise dated the 1st March, 2006, number G.S.R.
96(E), dated the 1st March, 2006; or]

(v)        cleared for export under
bond in terms of the provisions of the Central Excise Rules, 2002; or

(vi)      gold or silver falling within
Chapter 71 of the said First Schedule, arising in the course of manufacture of
copper or [zinc by smelting; or]

[(vii) all goods which are exempt
from the duties of customs leviable under the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975) and the additional duty leviable under sub-section
(1) of section 3 of the said Customs Tariff Act when imported into India and are
supplied, —

(a) 
against International Competitive Bidding; or

(b) 
to a power project from which power supply has been tied up through
tariff based competitive bidding; or

(c) 
to a power project awarded to a developer through tariff based
competitive bidding,

in terms of notification No.
6/2006-Central Excise, dated the 1st March, 2006.].


RULE 7. Manner of distribution
of credit by input service distributor.
The input service
distributor may distribute the CENVAT credit in respect of the service tax paid
on the input service to its manufacturing units or units providing output
service, subject to the following condition, namely :-

(a)        the credit distributed against a document referred to in rule 9 does
not exceed the amount of service tax paid thereon; or

(b)        credit of service tax attributable to service use in a unit
exclusively engaged in manufacture of exempted goods or providing of exempted
services shall not be distributed.


RULE [7A. Distribution of credit
on inputs by the office or any other premises of output service provider.

(1) A provider of output service shall be allowed to take credit on inputs and
capital goods received, on the basis of an invoice or a bill or a challan issued
by an office or premises of the said provider of output service, which receives
invoices, issued in terms of the provisions of the Central Excise Rules, 2002,
towards the purchase of inputs and capital goods.

(2) The provisions of these rules
or any other rules made under the Central Excise Act, 1944, as made applicable
to a first stage dealer or a second stage dealer, shall mutatis mutandis apply
to such office or premises of the provider of output service.]

RULE
8. Storage of input outside the factory of the manufacturer.

The
Deputy Commissioner of Central Excise or the Assistant Commissioner of Central
Excise, as the case may be, having jurisdiction over the factory of a
manufacturer of the final products may, in exceptional circumstances having
regard to the nature of the goods and shortage of storage space at the premises
of such manufacturer, by an order, permit such manufacturer to store the input
in respect of which CENVAT credit has been taken, outside such factory, subject
to such limitations and conditions as he may specify :

Provided
that where such input is not used in the manner specified in these rules for any
reason whatsoever, the manufacturer of the final products shall pay an amount
equal to the credit availed in respect of such input.

RULE
9. Documents and accounts.
(1) The CENVAT credit shall be taken by
the manufacturer or the provider of output service or input service distributor,
as the case may be, on the basis of any of the following documents, namely :-

(a) an invoice issued by -

(i)      a manufacturer for clearance of -

(I)      inputs or capital goods from his factory or depot or from the premises
of the consignment agent of the said manufacturer or from any other premises
from where the goods are sold by or on behalf of the said manufacturer;

(II)     inputs or capital goods as such;

(ii)    an importer;

(iii)   an importer from his depot or from the premises of the consignment agent
of the said importer if the said depot or the premises, as the case may be, is
registered in terms of the provisions of Central Excise Rules, 2002;

(iv)   a first stage dealer or a second stage dealer, as the case may be, in
terms of the provisions of Central Excise Rules, 2002; or

(b)        a supplementary invoice, issued by a manufacturer or
importer of inputs or capital goods in terms of the provisions of Central Excise
Rules, 2002 from his factory or depot or from the premises of the consignment
agent of the said manufacturer or importer or from any other premises from where
the goods are sold by, or on behalf of, the said manufacturer or importer, in
case additional amount of excise duties or additional duty leviable under
section 3 of the Customs Tariff Act, has been paid, except where the additional
amount of duty became recoverable from the manufacturer or importer of inputs or
capital goods on account of any non-levy or short-levy by reason of fraud,
collusion or any wilful misstatement or suppression of facts or contravention of
any provisions of the Excise Act, or of the Customs Act, 1962 (52 of 1962) or
the rules made there under with intent to evade payment of duty.


Explanation.
For removal of doubts, it is clarified that
supplementary invoice shall also include challan or any other similar document
evidencing payment of additional amount of additional duty leviable under
section 3 of the Customs Tariff Act; or

(c)        a bill of entry; or

(d)        a certificate issued by
an appraiser of customs in respect of goods imported through a Foreign Post
Office; or

(e)        a challan evidencing
payment of service tax by the person liable to pay service tax under
[sub-clauses (iii), (iv), (v) and (vii)] of clause (d) of sub-rule (1) of rule 2
of the Service Tax Rules, 1994; or

(f)         an invoice, a bill or
challan issued by a provider of input service on or after the 10th day of,
September, 2004; or

(g)        an invoice, bill or
challan issued by an input service distributor under rule 4A of the Service Tax
Rules, 1994 :

[Provided that the
credit of additional duty of customs levied under sub-section (5) of section 3
of the Customs Tariff Act, 1975 (51 of 1975) shall not be allowed if the invoice
or the supplementary invoice, as the case may be, bears an indication to the
effect that no credit of the said additional duty shall be admissible.]

[(2)No
CENVAT credit under sub-rule(1) shall be taken unless all the particulars as
prescribed under the Central Excise Rules, 2002 or the Service Tax Rules, 1994,
as the case may be, are contained in the said document :

Provided that if the
said document does not contain all the particulars but contains the details of
duty or service tax payable, description of the goods or taxable service,
[assessable value, Central Excise or Service tax registration number of the
person issuing the invoice, as the case may be], name and address of the factory
or warehouse or premises of first or second stage dealers or provider of taxable
service, and the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, is satisfied that the goods
or services covered by the said document have been received and accounted for in
the books of the account of the receiver, he may allow the CENVAT credit]

[ * * * * ]

(4)The
CENVAT credit in respect of input or capital goods purchased from a first stage
dealer or second stage dealer shall be allowed only if such first stage dealer
or second stage dealer, as the case may be, has maintained records indicating
the fact that the input or capital goods was supplied from the stock on which
duty was paid by the producer of such input or capital goods and only an amount
of such duty on pro rata basis has been indicated in the invoice issued
by him.

(5)The
manufacturer of final products or the provider of output service shall maintain
proper records for the receipt, disposal, consumption and inventory of the input
and capital goods in which the relevant information regarding the value, duty
paid, CENVAT credit taken and utilized, the person from whom the input or
capital goods have been procured is recorded and the burden of proof regarding
the admissibility of the CENVAT credit shall lie upon the manufacturer or
provider of output service taking such credit.

(6)The
manufacturer of final products or the provider of output service shall maintain
proper records for the receipt and consumption of the input services in which
the relevant information regarding the value, tax paid, CENVAT credit taken and
utilized, the person from whom the input service has been procured is recorded
and the burden of proof regarding the admissibility of the CENVAT credit shall
lie upon the manufacturer or provider of output service taking such credit.

(7)The manufacturer of final
products shall submit within ten days from the close of each month to the
Superintendent of Central Excise, a monthly return in the form specified, by
notification, by the Board :

Provided that where a
manufacturer is availing exemption under a notification based on the value or
quantity of clearances in a financial year, he shall file a quarterly return in
the form specified, by notification, by the Board within twenty days after the
close of the quarter to which the return relates.

(8) A first stage dealer or a
second stage dealer, as the case may be, shall submit within fifteen days from
the close of each quarter of a year to the Superintendent of Central Excise, a
return in the form specified, by notification, by the Board :

[Provided that the first
stage dealer or second stage dealer, as the case may be, shall submit the said
return electronically.]

(9) The provider of output service availing CENVAT credit,
shall submit a half yearly return in form specified, by notification, by the
Board to the Superintendent of Central Excise, by the end of the month following
the particular quarter or half year.

[(10) The input service distributor, shall furnish a half yearly return in such
form as may be specified, by notification, by the Board, giving the details of
credit received and distributed during the said half year to the jurisdictional
Superintendent of Central Excise, not later than the last day of the month
following the half year period.]


[(11) The provider of output service, availing CENVAT
credit referred to in sub-rule (9) or the input service distributor referred to
in sub-rule (10), as the case may be, may submit a revised return to correct a
mistake or omission within a period of sixty days from the date of submission of
the return under sub-rule (9) or sub-rule (10), as the case may be.]

RULE [9A. Information relating to principal inputs.

— (1) A manufacturer of final products shall furnish to the Superintendent of
Central Excise, annually by 30th April of each Financial Year, a declaration in
the Form specified, by a notification, by the Board, in respect of each of the
excisable goods manufactured or to be manufactured by him, the principal inputs
and the quantity of such principal inputs required for use in the manufacture of
unit quantity of such final products :

Provided that for the year 2004-05, such information
shall be furnished latest by 31st December, 2004 :

[Provided further that where a manufacturer of final
products has paid total duty of rupees ten lakh or more including the amount of
duty paid by utilization of CENVAT credit in the preceding financial year, he
shall file such declaration electronically.]

(2) If a manufacturer of final products intends to make any
alteration in the information so furnished under sub-rule (1), he shall furnish
information to the Superintendent of Central Excise together with the reasons
for such alteration before the proposed change or within 15 days of such change
in the Form specified by the Board under sub-rule (1).

(3) A manufacturer of final products shall submit, within
ten days from the close of each month, to the Superintendent of Central Excise,
a monthly return in the Form specified, by a notification, by the Board, in
respect of information regarding the receipt and consumption of each principal
inputs with reference to the quantity of final products manufactured by him :

[Provided that where a manufacturer of final
products has paid total duty of rupees ten lakh or more including the amount of
duty paid by utilization of CENVAT credit in the preceding financial year, he
shall file the said monthly return electronically:]


(4) The Central
Government may, by notification and subject to such conditions or limitations,
as may be specified in such notification, specify manufacturers or class of
manufacturers who may not be required to furnish declaration mentioned in
sub-rule (1) or monthly return mentioned in sub-rule (3).

Explanation.For the purposes of
this rule, “principal inputs”, means any input which is used in the manufacture
of final products where the cost of such input constitutes not less than 10% of
the total cost of raw-materials for the manufacture of unit quantity of a given
final products.]

RULE 10. Transfer of CENVAT credit.
(1) If
a manufacturer of the final products shifts his factory to another site or the
factory is transferred on account of change in ownership or on account of sale,
merger, amalgamation, lease or transfer of the factory to a joint venture with
the specific provision for transfer of liabilities of such factory, then, the
manufacturer shall be allowed to transfer the CENVAT credit lying unutilized in
his accounts to such transferred, sold, merged, leased or amalgamated factory.

(2) If a provider of output service shifts or transfers his
business on account of change in ownership or on account of sale, merger,
amalgamation, lease or transfer of the business to a joint venture with the
specific provision for transfer of liabilities of such business, then, the
provider of output service shall be allowed to transfer the CENVAT credit lying
unutilized in his accounts to such transferred, sold, merged, leased or
amalgamated business.

(3) The transfer of the CENVAT credit under sub-rules (1)
and (2) shall be allowed only if the stock of inputs as such or in process, or
the capital goods is also transferred along with the factory or business
premises to the new site or ownership and the inputs, or capital goods, on which
credit has been availed of are duly accounted for to the satisfaction of the
Deputy Commissioner of Central Excise or, as the case may be, the Assistant
Commissioner of Central Excise.

RULE 11. Transitional provision.
— (1) Any amount of
credit earned by a manufacturer under the CENVAT Credit Rules, 2002, as they
existed prior to the 10th day of September, 2004 or by a provider of output
service under the Service Tax Credit Rules, 2002, as they existed prior to the
10th day of September, 2004, and remaining unutilized on that day shall be
allowed as CENVAT credit to such manufacturer or provider of output service
under these rules, and be allowed to be utilized in accordance with these rules.

(2) A manufacturer who opts for exemption from the whole of
the duty of excise leviable on goods manufactured by him under a notification
based on the value or quantity of clearances in a financial year, and who has
been taking CENVAT credit on inputs or input services before such option is
exercised, shall be required to pay an amount equivalent to the CENVAT credit,
if any, allowed to him in respect of inputs lying in stock or in process or
contained in final products lying in stock on the date when such option is
exercised and after deducting the said amount from the balance, if any, lying in
his credit, the balance, if any, still remaining shall lapse and shall not be
allowed to be utilized for payment of duty on any excisable goods, whether
cleared for home consumption or for export.

[(3) A manufacturer or producer of a final product shall be
required to pay an amount equivalent to the CENVAT credit, if any, taken by him
in respect of inputs received for use in the manufacture of the said final
product and is lying in stock or in process or is contained in the final product
lying in stock, if,-

(i)         he opts for exemption from whole of the duty of
excise leviable on  the said final product manufactured or produced by him under
a notification issued under section 5A of the Act; or

(ii)   the said
final product has been exempted absolutely under section 5A of the Act, and
after deducting the said amount from the balance of CENVAT credit, if any, lying
in his credit, the balance, if any, still remaining shall lapse and shall not be
allowed to be utilized for payment of duty on any other final product whether
cleared for home consumption or for export, or for payment of service tax on any
output service, whether provided in India or exported.

(4) A provider of output service shall be required to pay
an amount equivalent to the CENVAT credit, if any, taken by him in respect of
inputs received for providing the said service and is lying in stock or is
contained in the taxable service pending to be provided, when he opts for
exemption from payment of whole of the service tax leviable on such taxable
service under a notification issued under section 93 of the Finance Act, 1994(32
of 1994) and after deducting the said amount from the balance of CENVAT credit,
if any, lying in his credit, the balance, if any, still remaining shall lapse
and shall not be allowed to be utilized for payment of duty on any excisable
goods, whether cleared for home consumption or for export or for payment of
service tax on any other output service, whether provided in India or exported.]

RULE 12. Special dispensation in respect of inputs
manufactured in factories located in specified areas of North East region, Kutch
district of Gujarat, State of
Jammu and Kashmir and State of

Sikkim
.


Notwithstanding anything contained in these rules, where a manufacturer has
cleared any inputs or capital goods, in terms of notifications of the Government
of India in the Ministry of Finance (Department of Revenue) No. 32/99-Central
Excise, dated the 8th July, 1999 [G.S.R. 508(E), dated the 8th July, 1999] or
No. 33/99-Central Excise, dated the 8th July, 1999 [G.S.R. 509(E), dated the 8th
July, 1999] or No. 39/2001-Central Excise, dated the 31st July, 2001 [G.S.R.
565(E), dated the 31st July, 2001] or notification of the Government of India in
the erstwhile Ministry of Finance and Company Affairs (Department of Revenue)
No. 56/2002-Central Excise, dated the 14th November, 2002 [G.S.R. 764(E), dated
14th November, 2002] or No. 57/2002-Central Excise, dated the 14th November,
2002 [GSR 765(E), dated the 14th November, 2002] or notification of the
Government of India in the Ministry of Finance (Department of Revenue) No.
56/2003-Central Excise, dated the 25th June, 2003 [G.S.R. 513(E), dated the 25th
June, 2003] or 71/2003-Central Excise, dated the 9th September, 2003 [G.S.R.
717(E), dated the 9th September, 2003, [or No. 20/2007-Central Excise, dated the
25th April, 2007 [GSR 307(E), dated
the 25th April, 2007]] the CENVAT credit on such inputs or capital goods shall
be admissible as if no portion of the duty paid on such inputs or capital goods
was exempted under any of the said notifications.

RULE [12A. Procedure and facilities for large tax
payer.
– Notwithstanding anything contained in these rules, the following
procedure shall apply to a large tax payer, -

(1)A large
tax payer may remove inputs, except motor spirit, commonly known as petrol, high
speed diesel and light diesel oil or capital goods, as such, on which CENVAT
credit has been taken, without payment of an amount specified in sub-rule (5) of
rule 3 of these rules, under the cover of a transfer challan or invoice, from
any of his registered premises (hereinafter referred to as the sender premises)
to his other registered premises, other than a premises of a first or second
stage dealer (hereinafter referred to as the recipient premises), for further
use in the manufacture or production of final products in recipient premises
subject to condition that -

(a)        the final products are manufactured or produced
using the said inputs and cleared on payment of appropriate duties of excise
leviable thereon within a period of six months, from the date of receipt of the
inputs in the recipient premises; or

(b)        the final products are manufactured or produced
using the said inputs and exported out of India, under bond or letter of
undertaking within a period of six months, from the date of receipt of the input
goods in the recipient premises,

and that any other conditions
prescribed by the Commissioner of Central Excise, large tax payer unit in this
regard are satisfied.

Explanation 1. — The transfer challan or
invoice shall be serially numbered and shall contain the registration number,
name, address of the large tax payer, description, classification, time and date
of removal, mode of transport and vehicle registration number, quantity of the
goods and registration number and name of the consignee :

Provided
that if the final products manufactured
or produced using the said inputs are not cleared on payment of appropriate
duties of excise leviable thereon or are not exported out of India within the
said period of six months from the date of receipt of the input goods in the
recipient premises, or such inputs are cleared as such from the recipient
premises, an amount equal to the credit taken in respect of such inputs by the
sender premises shall be paid by the recipient premises with interest in the
manner and rate specified under rule 14 of these rules.

Provided
further that if such capital goods are
used exclusively in the manufacture of exempted goods, or such capital goods are
cleared as such from the recipient premises, an amount equal to the credit taken
in respect of such capital goods by the sender premises shall be paid by the
recipient premises with interest in the manner and rate specified under rule 14
of these rules.

Explanation 2. — If a large tax
payer fails to pay any amount due in terms of the first and second provisos, it
shall be recovered along with interest in the manner as provided under rule 14
of these rules :

Provided
also that nothing contained in this
sub-rule shall be applicable if the recipient premises is availing following
notifications of Government of India in the Ministry of Finance (Department of
Revenue), -

(i)         No. 32/99-Central Excise, dated the 8th July, 1999
[G.S.R. 508(E), dated 8th July, 1999];

(ii)       No. 33/99-Central Excise, dated the 8th July, 1999
[G.S.R. 509(E), dated 8th July, 1999];

(iii)      No. 39/2001-Central Excise, dated the 31st July,
2001 [G.S.R. 565(E), dated the 31st July, 2001];

(iv)      No. 56/2002-Central Excise, dated the 14th November,
2002 [G.S.R. 764(E), dated the 14th November, 2002];

(v)        No. 57/2002-Central Excise, dated 14th November,
2002 [G.S.R.. 765(E), dated the 14th November, 2002];

(vi)      No. 56/2003-Central Excise, dated the 25th June, 2003
[G.S.R. 513(E), dated the 25th June, 2003];

(vii)     No. 71/2003-Central Excise, dated the 9th September,
2003 [G.S.R. 717(E), dated the 9th September, 2003]; and

[(viii) No. 20/2007-Central Excise, dated the 25th April, 2007
[GSR 307(E), dated the 25th April,
2007]] :

Provided
also that nothing contained in this
sub-rule shall be applicable to a export-oriented unit or a unit located in a
Electronic
Hardware
Technology
Park or

Software
Technology
Park
.

(2)The first
recipient premises may take CENVAT credit of the amount paid under first proviso
to sub-rule (1) as if it was a duty paid by the sender premises who removed such
goods on the basis of a document showing payment of such duties.

(3)CENVAT
credit of the specified duties taken by a sender premises shall not be denied or
varied in respect of any inputs or capital goods, -

(a)        removed as such under sub-rule (1) on the ground
that the said inputs or the capital goods have been removed without payment of
an amount specified in sub-rule (5) of rule 3 of these rules; or

(b)        on the ground that the said inputs or capital goods
have been used in the manufacture of any intermediate goods removed without
payment of duty under sub-rule (1) of rule 12BB of Central Excise Rules, 2002.

Explanation.
- For the purpose of
this sub-rule ‘intermediate goods’ shall have the same meaning assigned to it in
sub-rule (1) of rule 12BB of the Central Excise Rules, 2002.

(4)A large
tax payer may transfer, CENVAT credit available with one of his registered
manufacturing premises or premises providing taxable service to his other such
registered premises by, -

(i)         making an entry for such transfer in the record
maintained under rule 9;

(ii)       issuing a transfer challan containing registration
number, name and address of the registered premises transferring the credit as
well as receiving such credit, the amount of credit transferred and the
particulars of such entry as mentioned in clause (i),

and such recipient premises can
take CENVAT credit on the basis of such transfer challan as mentioned in clause
(ii) :

Provided
that such transfer or utilisation of
CENVAT credit shall be subject to the limitations prescribed under clause (b) of
sub-rule (7) of rule 3.

Provided
further that nothing contained in this
sub-rule shall be applicable if the registered manufacturing premises is
availing following notifications of Government of India in the Ministry of
Finance (Department of Revenue), -

(i)         No. 32/99-Central Excise, dated the 8th July, 1999
[G.S.R. 508(E), dated 8th July, 1999];

(ii)       No. 33/99-Central Excise, dated the 8th July, 1999
[G.S.R. 509(E), dated 8th July, 1999];

(iii)      No. 39/2001-Central Excise, dated the 31st July,
2001 [G.S.R. 565(E), dated the 31st July, 2001];

(iv)      No. 56/2002-Central Excise, dated the 14th November,
2002 [G.S.R. 764(E), dated the 14th November, 2002];

(v)        No. 57/2002-Central Excise, dated 14th November,
2002 [G.S.R.. 765(E), dated the 14th November, 2002];

(vi)      No. 56/2003-Central Excise, dated the 25th June, 2003
[G.S.R. 513(E), dated the 25th June, 2003];

(vii)     No. 71/2003-Central Excise, dated the 9th September,
2003 [G.S.R. 717(E), dated the 9th September, 2003]; and

[(viii) No. 20/2007-Central Excise, dated the 25th April, 2007
[GSR 307(E), dated the 25th April,
2007]].

(5)A large
tax payer shall submit a monthly return, as prescribed under these rules, for
each of the registered premises.

(6)Any
notice issued but not adjudged by any of the Central Excise officer
administering the Act or rules made thereunder immediately before the date of
grant of acceptance by the Chief Commissioner of Central Excise, large tax payer
unit, shall be deemed to have been issued by Central Excise officers of the said
Unit.

(7)Provisions
of these rules, insofar as they are not inconsistent with the provisions of this
rule shall mutatis mutandis apply in case of a large tax payer.]

RULE [12AA.Power
to impose restrictions in certain types of cases.
— Notwithstanding anything
contained in these rules, where the Central Government, having regard to the
extent of misuse of CENVAT credit, nature and type of such misuse and such other
factors as may be relevant, is of the opinion that in order to prevent the
misuse of the provisions of CENVAT credit as specified in these rules, it is
necessary in the public interest to provide for certain measures including
restrictions on a manufacturer, first stage and second stage dealer or an
exporter, may by a notification in the Official Gazette, specify nature of
restrictions including restrictions on utilization of CENVAT credit and
suspension of registration in case of a dealer and type of facilities to be
withdrawn and procedure for issue of such order by an officer authorized by the
Board.]

RULE 13. Power of Central
Government to notify goods for deemed CENVAT credit.

Notwithstanding anything contained in rule 3, the Central Government may, by
notification, declare the input or input service on which the duties of excise,
or additional duty of customs or service tax paid, shall be deemed to have been
paid at such rate or equivalent to such amount as may be specified in that
notification and allow CENVAT credit of such duty or tax deemed to have been
paid in such manner and subject to such conditions as may be specified in that
notification even if, in the case of input, the declared input, or in the case
of input service, the declared input service, as the case may be, is not used
directly by the manufacturer of final products, or as the case may be, by the
provider of taxable service, declared in that notification, but contained in the
said final products, or as the case may be, used in providing the taxable
service.

RULE 14.Recovery of CENVAT credit wrongly taken
or erroneously refunded.
— Where the CENVAT credit has been taken or
utilized wrongly or has been erroneously refunded, the same along with interest
shall be recovered from the manufacturer or the provider of the output service
and the provisions of sections 11A and 11AB of the Excise Act or sections 73 and
75 of the Finance Act, shall apply mutatis mutandis for effecting such
recoveries.

 

[RULE 15.Confiscation
and penalty.
— (1) If any person, takes or utilises CENVAT credit in respect
of input or capital goods or input services, wrongly or in contravention of any
of the provisions of these rules, then, all such goods shall be liable to
confiscation and such person, shall be liable to a penalty not exceeding the
duty or service tax on such goods or services, as the case may be, or two
thousand rupees, whichever is greater.

(2) In a case, where the CENVAT credit in respect of input
or capital goods or input services has been taken or utilised wrongly by reason
of fraud, collusion or any wilful mis-statement or suppression of facts, or
contravention of any of the provisions of the Excise Act, or of the rules made
thereunder with intent to evade payment of duty, then, the manufacturer shall
also be liable to pay penalty in terms of the provisions of Section 11AC of the
Excise Act.

(3) In a case, where the CENVAT credit in respect of input
or capital goods or input services has been taken or utilised wrongly by reason
of fraud, collusion or any wilful mis-statement or suppression of facts, or
contravention of any of the provisions of these rules or of the Finance Act or
of the rules made thereunder with intent to evade payment of service tax, then,
the provider of output service shall also be liable to pay penalty in terms of
the provisions of Section 78 of the Finance Act.

(4) Any order under sub-rule (1), sub-rule (2) or sub-rule
(3) shall be issued by the Central Excise Officer following the principles of
natural justice.]

 

RULE [15A. General penalty. — Whoever contravenes
the provisions of these rules for which no penalty has been provided in the
rules, he shall be liable to a penalty which may extend to five thousand
rupees.]

 

RULE 16. Supplementary provision.
— [(1)] Any
notification, circular, instruction, standing order, trade notice or other order
issued under the CENVAT Credit Rules, 2002 or the Service Tax Credit Rules,
2002, by the Central Government, the Central Board of Excise and Customs, the
Chief Commissioner of Central Excise or the Commissioner of Central Excise, and
in force at the commencement of these rules, shall, to the extent it is relevant
and consistent with these rules, be deemed to be valid and issued under the
corresponding provisions of these rules.

[(2) References in any rule, notification, circular,
instruction, standing order, trade notice or other order to the CENVAT Credit
Rules, 2002 and any provision thereof or, as the case may be, the Service Tax
Credit Rules, 2002 and any provision thereof shall, on the commencement of these
rules, be construed as references to the CENVAT Credit Rules, 2004 and any
corresponding provision thereof.]

 

PAN MASALA PACKING MACHINES (CAPACITY DETERMINATION AND COLLECTION OF DUTY) RULES, 2008


PAN MASALA PACKING MACHINES (CAPACITY DETERMINATION AND COLLECTION OF DUTY)
RULES, 2008

[Notification No. 30/2008-C.E. (N.T.), dated 1-7-2008 as
amended]

In exercise of the powers
conferred by sub-sections (2) and (3) of section 3A of the Central Excise Act,
1944 (1 of 1944), the Central Government hereby makes the following rules,
namely :-


RULE 1. Short title and
commencement.
– (1) These rules may be called the Pan Masala Packing
Machines (Capacity Determination and Collection of Duty) Rules, 2008.

(2) They shall come into force on
the 1st day of July, 2008.


RULE 2. Definitions.
– In
these rules, unless the context otherwise requires, –

(a)    “Act” means the Central Excise Act, 1944 (1 of 1944);

(b)    “notified goods” means goods specified by the Central Government by
[Notification No. 29/2008-C.E. (N.T.), dated the 1st July 2008] under
sub-section (1) of section 3A of the Act;

(c)     “packing machine” includes all types of Form, Fill and Seal (FFS)
Machines and Profile Pouch Making Machines, by whatever name called, whether
vertical or horizontal, with or without collar, single track or multi-track, and
any other type of packing machine used for packing of pouches of notified goods;

(d)    “pan masala” means excisable goods falling under tariff item 2106 90 20
of the First Schedule to the Tariff Act;

(e)     “pan masala containing tobacco” means excisable goods defined in Note 4
of Chapter 24 of the First Schedule to the Tariff Act and falling under tariff
item 2403 99 90 of the same Schedule;

(f)     “retail sale price” means retail sale price as specified by the Central
Government, in Explanation 3 to the opening paragraph in the notification
of the Government of India in the Ministry of Finance (Department of Revenue),
No. 42/2008-C.E., dated the 1st July, 2008;

(g)    “Tariff Act” means the Central Excise Tariff Act, 1985 (5 of 1986);

(h)    the words and expressions used herein but not defined and defined in the
Act shall have the meanings respectively assigned to them in the Act.


RULE 3. Application.

These rules shall apply to pan masala and pan masala containing tobacco,
commonly known as gutkha, notified under sub-section (1) of section 3A of the
Act by the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 29/2008-C.E. (N.T.), dated the 1st July, 2008.


RULE 4.Factor
relevant to production.
– The factor relevant to the production of notified
goods shall be the number of packing machines in the factory of the
manufacturer.


RULE 5. Quantity deemed to be
produced.
– The quantity of notified goods, having retail sale price as
specified in column (2) of the Table below, deemed to be produced by use of one
operating packing machine per month shall be as is equal to the corresponding
entry specified in column(3) of the said Table :

TABLE

Sl. No.

Retail sale price (per pouch)

Number of pouches per operating packing machine per month

(1)

(2)

(3)

1.

Up to Rs. 1.00

37,44,000

2.

From Rs. 1.01 to Rs. 1.50

37,44,000

3.

From Rs. 1.51 to Rs. 2.00

35,56,800

4.

From Rs. 2.01 to Rs. 3.00

35,56,800

5.

From Rs. 3.01 to Rs. 4.00

34,44,480

6.

From Rs. 4.01 to Rs. 5.00

34,44,480

7.

From Rs. 5.01 to Rs. 6.00

34,44,480

8.

Above Rs. 6.00

33,69,600


Explanation.
– For the purposes of this rule, if there are multiple
track or multiple line packing machine which besides packing the notified goods
in pouches, perform additional processes involving moulding and giving a
definite shape to such pouches with a view to distinguish the brand or to
prevent the counterfeiting of the goods, etc., two such tracks or lines shall be
deemed to be one individual packing machine for the purposes of calculation of
the number of pouches per operating packing machine per month :

[Provided that in case of
multiple track or multiple line packing machine which are incapable of
performing such additional processes, one such track or line shall be deemed to
be one individual packing machine for the purposes of calculation of the number
of pouches per operating packing machine per month.]


RULE 6.Declaration
to be filed by the manufacturer.
– (1) A manufacturer of notified goods
shall, immediately on coming into force of these rules, and, in any case, not
later than ten days, declare, in Form 1, –

(i)     the number of single track packing machines available in his factory;

(ii)    the number of packing machines out of (i), which are installed in his
factory;

(iii)   the number of packing machines out of (ii), which he intends to operate
in his factory for production of notified goods;

[(iv) the number of multiple track or multiple line packing machine, which
besides packing the notified goods in pouches, perform additional processes
involving moulding and giving a definite shape to such pouches with a view to
distinguish the brand or to prevent the counterfeiting of the goods, etc;

(iv)(a) the number of multiple track or multiple line packing machine, which are
incapable of performing additional processes specified in (iv);

(v)    the number of multiple track or multiple line packing machines out of
(iv) and (iv)(a), which are installed in his factory;

(vi)   the number of multiple track or multiple line packing machines out of
(v), which he intends to operate in his factory for production of notified
goods;]

(vii)  the name of the manufacturer of each of the packing machine, its
identification number, date of its purchase and the maximum packing speed at
which they can be operated for packing of notified goods of various retail sale
prices;

(viii) description of goods to be manufactured including whether pan masala or
gutkha or both are to be manufactured, their brand names, etc;

(ix)   retail sale prices of the pouches to be manufactured during the financial
year;

(x)    the plan and details of the part or section of the factory premises
intended to be used by him for manufacture of notified goods of different retail
sale prices and the number of machines intended to be used by him in each of
such part or section,

to the Deputy
Commissioner of Central Excise or the Assistant Commissioner of Central Excise,
as the case may be, with a copy to the Superintendent of Central Excise :

Provided
that a new manufacturer shall file such declaration [at least seven days] prior
to the commencement of commercial production of notified goods in his factory.

(2) On receipt
of the declaration referred to in sub-rule (1), the Deputy Commissioner of
Central Excise or the Assistant Commissioner of Central Excise, as the case may
be, shall, after making such inquiry as may be necessary including physical
verification, approve the declaration and determine and pass order concerning
the annual capacity of production of the factory within [three working days] in
accordance with the provisions of these rules :

Provided
that the Deputy Commissioner of Central Excise or the Assistant Commissioner of
Central Excise, as the case may be, may direct for modifications in the plan or
details of the part or section of the factory premises intended to be used by
the manufacturer for manufacture of notified goods of different retail sale
prices, as he thinks proper, for effective segregation of the parts or sections
of the premises and the machines to be used in such parts or sections before
granting the approval :


Provided
further that if
the manufacturer does not receive the approval in respect of his declaration
within the said period of five working days, the approval shall be deemed to
have been granted subject to the modifications, if any, which the Deputy
Commissioner of Central Excise or the Assistant Commissioner of Central Excise,
as the case may be, may communicate later on but not later than thirty days of
filing of the declaration.

(3) The annual capacity of
production shall be calculated by application of the appropriate quantity that
is deemed to be produced by use of one operating packing machine as specified in
rule 5 to the number of operating packing machines in the factory during the
month beginning which the capacity is being determined :

[Provided that in case a
new manufacturer commences production of notified goods, his annual capacity of
production shall be calculated pro-rata on the basis of the total number
of days in that year and the number of days remaining in that year starting from
the date of commencement of the production of such notified goods.]

(4) The number of operating
packing machines during any month shall be equal to the number of packing
machines installed in the factory during that month.

(5) The machines which the
manufacturer does not intend to operate shall be uninstalled and sealed by the
Superintendent of Central Excise and removed from the factory premises under his
physical supervision :


Provided
that in case it
is not feasible to remove such packing machine out of the factory premises, it
shall be uninstalled and sealed by the Superintendent of Central Excise in such
a manner that it cannot be operated.

(6) In case a manufacturer wishes
to make any subsequent changes with respect to any of the parameters which has
been declared by him and approved by the Deputy Commissioner of Central Excise
or the Assistant Commissioner of Central Excise, as the case may be, in terms of
sub-rule (2), such as changes relating to addition or removal of packing
machines in the factory or making alterations in any part or section of the
approved premises or in the number of machines to be used in such part or
section or commencing manufacture of goods of a new retail sale price or
discontinuation of manufacturing of goods of existing retail sale price, etc.,
he shall file a fresh declaration to this effect [at least three working days]
in advance to the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, who shall approve such fresh
declaration and re-determine the annual capacity of production following the
procedure specified in sub-rule (2).

RULE 7.Duty
payable to be calculated.
– The duty payable for a particular month shall be
calculated by application of the appropriate rate of duty specified in the
notification of the Government of India in the Ministry of Finance (Department
of Revenue), No. 42/2008-C.E., dated the 1st July, 2008 to the number of
operating packing machines in the factory during the month.

RULE 8.Alteration
in number of operating packing machines.
– In case of addition or
installation or removal or uninstallation of a packing machine in the factory
during the month, the number of operating packing machine for the month shall be
taken as the maximum number of packing machines installed on any day during the
month :

Provided that in case a manufacturer commences
manufacturing of goods of a new retail sale price during the month on an
existing machine, it shall be deemed to be an addition in the number of
operating packing machine for the month :

Provided further that in case of non-working of any
installed packing machine during the month, for any reason whatsoever, the same
shall be deemed to be operating packing machine for the month.

RULE 9.Manner
of payment of duty and interest.
– The monthly duty payable on notified
goods shall be paid by the 5th day of same month and an intimation in Form – 2
shall be filed with the Jurisdictional Superintendent of Central Excise before
the 10th day of the same month :

Provided that monthly duty payable for the month of
July, 2008 shall be paid on or before 15th day of July, 2008 :

Provided further that if the manufacturer fails to
pay the amount of duty by due date, he shall be liable to pay the outstanding
amount along with the interest at the rate specified by the Central Government
vide notification under section 11AB of the Act on the outstanding amount, for
the period starting with the first day after due date till the date of actual
payment of the outstanding amount :


Provided
also that in case
of increase in the number of operating packing machines in the factory during
the month on account of addition or installation of packing machines, the
differential duty amount, if any, shall be paid by the 5th day of the following
month :

Provided also that in case a manufacturer permanently
discontinues manufacturing of goods of existing retail sale price or commences
manufacturing of goods of a new retail sale price during the month, the monthly
duty payable shall be recalculated pro-rata on the basis of the total number of
days in that month and the number of days remaining in that month counting from
the date of such discontinuation or commencement and the duty liability for the
month shall not be discharged unless the differential duty is paid by the 5th
day of the following month and in case the amount of duty so recalculated is
less than the duty paid for the month, the balance shall be refunded to the
manufacturer by the 20th day of the following month :


Provided
also that if
there is revision in the rate of duty, the monthly duty payable shall be
recalculated pro-rata on the basis of the total number of days in that month and
the number of days remaining in that month counting from the date of such
revision and the duty liability for the month shall not be discharged unless the
differential duty is paid by the 5th day of the following month and in case the
amount of duty so recalculated is less than the duty paid for the month, the
balance shall be refunded to the manufacturer by the 20th day of the following
month :


Provided
also that in case
it is found that a manufacturer has manufactured goods of those retail sale
prices, which have not been declared by him in accordance with provisions of
these rules or has manufactured goods in contravention of his declaration
regarding the plan or details of the part or section of the factory premises
intended to be used by him for manufacture of notified goods of different retail
sale prices and the number of machines intended to be used by him in each of
such part or section, the rate of duty applicable to goods of highest retail
sale price so manufactured by him shall be payable in respect of all the packing
machines operated by him for the period during which such manufacturing took
place :

[Provided also that in
case a manufacturer does not pay the duty payable by the due date, and continues
to operate any packing machine, then till the time such non-payment continues,
he shall be liable to pay the monthly duty based on the number of operating
packing machines declared in the month for which duty was last paid by him or
the total number of packing machines found available in his premises at any time
thereafter, whichever is higher :


Provided
also that in case
a new manufacturer commences production of notified goods in a particular month,
his monthly duty payable for that month shall be calculated pro-rata on
the basis of the total number of days in the month and the number of days
remaining in that month starting from the date of commencement of the production
of such notified goods and shall be paid within five days of such commencement.]


RULE 10.Abatement
in case of non-production of goods.
– In case a factory did not produce the
notified goods during any continuous period of fifteen days or more, the duty
calculated on a proportionate basis shall be abated in respect of such period
provided the manufacturer of such goods files an intimation to this effect with
the Deputy Commissioner of Central Excise or the Assistant Commissioner of
Central Excise, as the case may be, with a copy to the Superintendent of Central
Excise, [at least three working days] prior to the commencement of said period,
who on receipt of such intimation shall direct for sealing of all the packing
machines available in the factory for the said period under the physical
supervision of Superintendent of Central Excise, in the manner that these cannot
be operated during the said period :

[Provided that during such
period, no manufacturing activity, whatsoever, in respect of notified goods
shall be undertaken and no removal of notified goods shall be effected by the
manufacturer except that notified goods already produced before the commencement
of said period may be removed within first two days of the said period :]


Provided
further that when
the manufacturer intends to restart his production of notified goods, he shall
inform to the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, of the date from which he
would restart production, whereupon the seal fixed on packing machines would be
opened under the physical supervision of Superintendent of Central Excise.


RULE 11.Retail
sale price to be declared on the package.
- Every manufacturer shall declare
the retail sale price of the notified goods on the package of such goods :


Provided
that if the
manufacturer fails to declare the retail sale price before removing the goods
from the place of manufacture or declares a retail sale price which is not the
retail sale price as required to be declared under the provisions of these rules
or tampers with, obliterates or alters the retail sale price declared on the
package of such goods after their removal from the place of manufacture, then,
such goods shall be liable to confiscation and the retail sale price of such
goods shall be ascertained in the manner specified in these rules and such price
shall be deemed to be the retail sale price for the purposes of these rules.

RULE 12.Determination
of retail sale price in case of non-declaration, obliteration, tampering, etc.

– Where a manufacturer removes the notified goods in the manner and
circumstances specified in proviso to rule 11, then, the retail sale price of
such goods shall be ascertained by the Deputy Commissioner of Central Excise or
the Assistant Commissioner of Central Excise, as the case may be, in the
following manner, namely :-

(i)     if the
manufacturer has manufactured and removed identical goods, within a period of
one month, before or after removal of such goods, by declaring the retail sale
price, then, the said declared retail sale price shall be taken as the retail
sale price of such goods.

(ii)    if the retail sale price cannot be ascertained in terms of (i), the
retail sale price of such goods shall be ascertained by conducting the enquiries
in the retail market where such goods have normally been sold at or about the
same time of the removal of such goods from the place of manufacture :


Provided

that if more than one retail sale price is ascertained under (i) or (ii), then,
the highest of the retail sale price, so ascertained, shall be taken as the
retail sale price of all such goods.


Explanation.

– For the purposes of this rule, when retail sale price is required to be
ascertained based on market inquiries, the said inquiries shall be carried out
on sample basis.

(iii)   Where a
manufacturer alters or tampers the retail sale price declared on the package of
goods after their removal from the place of manufacture, resulting into increase
in the retail sale price, then such increased retail sale price shall be taken
as the retail sale price of all goods removed during a period of one month
before and after the date of removal of such goods :


Provided

that where the manufacturer alters or tampers the declared retail sale price
resulting into more than one retail sale price available on such goods, then,
the highest of such retail sale price shall be taken as the retail sale price of
all such goods.

(iv)   If the
retail sale price of goods cannot be ascertained under (i) to (iii), the retail
sale price shall be ascertained in accordance with the principles of this rule.


RULE 13.Addition
or removal of packing machines and other restrictions.
– (1) In case a
manufacturer does not intend to further operate a packing machine, he shall
intimate the same to the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, [at least three working
days] in advance, whereupon the same shall be uninstalled and sealed by the
Superintendent of Central Excise and removed from the factory premises under his
physical supervision :


Provided
that in case it is
not feasible to remove such packing machine out of the factory premises, it
shall be uninstalled and sealed by the Superintendent of Central Excise in such
a manner that it cannot be operated.

(2) In case a manufacturer wants
to add or install a packing machine in his premises, he shall give a notice to
this effect [at least three working days] in advance to the Deputy Commissioner
of Central Excise or the Assistant Commissioner of Central Excise, as the case
may be, who shall allow the addition or installation, as the case may be, under
the physical supervision of Superintendent of Central Excise.

(3) No manufacturer shall be allowed to keep in his factory
any stock of packing material for goods of those retail sale prices which have
not been declared by him in accordance with provisions of these rules.

(4) No manufacturer shall be allowed to trade in notified
goods of retail sale prices not declared by him in accordance with provisions of
these rules, from his factory premises.

(5) In case a manufacturer permanently discontinues
manufacture of goods of existing retail sale prices, he shall declare the
balance stock of notified goods of existing retail sale prices and their packing
material on the day he discontinues manufacturing of goods of existing retail
sale prices.


RULE 14.Rebate
of duty.
– Except in accordance with such terms and conditions as the
Central Government may by notification specify in this behalf, no rebate of
excise duty shall be granted under rule 18 of the Central Excise Rules, 2002, in
respect of notified goods on which duty has been paid under notification of the
Government of India in the Ministry of Finance (Department of Revenue), No. 42/
2008-C.E., dated the 1st July, 2008 and exported out of India.


RULE [14A. Export without payment
of duty.

- Notwithstanding anything contained in these rules or in the
Central Excise Rules, 2002 -

(i)     no notified goods shall be exported without payment of
duty; and

(ii)    no material shall be removed without payment of duty
from a factory or warehouse or any other premises for use in the manufacture or
processing of notified goods which are exported out of

India.
].


RULE 15.Cenvat
credit not admissible.
– Notwithstanding anything contained in these rules,
no CENVAT credit of duty paid on any input, capital goods or input services
[used in or inrelation to manufacture] of the notified goods shall be taken
under the CENVAT Credit Rules, 2004 and the full amount of duty payable would be
paid in cash only.


RULE [16.Factories
ceasing to work.
– Notwithstanding anything contained in these rules, where
a manufacturer permanently ceases to work in respect of all the machines
installed in the factory and who has filed an intimation for surrender of
registration with the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, with a copy to the
Superintendent of Central Excise, for this purpose, the duty payable by him for
the month shall be calculated pro rata on the basis of the total number
of days in the said month and total number of days before the date of receipt of
said intimation with the Deputy Commissioner of Central Excise or the Assistant
Commissioner of Central Excise, as the case may be, and the duty paid for the
month in accordance with the notification shall be adjusted towards the duty so
calculated and on such adjustment, if there is any excess payment, it shall be
refunded to the manufacturer by the 20th day of the following month and
deficiency, if any, shall be payable by him by the 5th day of the following
month.


Explanation.
– For
the purposes of this rule, “ceases to work” shall not include a manufacturer who
ceases to operate his factory for one or two shifts only.]

RULE
17. Penalty for contraventions, etc.
- (1) Subject to the provisions of
section 11AC of the Act, if any manufacturer produces or removes notified goods
in contravention of any provision of these rules, then all such goods shall be
liable to confiscation, and the manufacturer shall be liable to a penalty not
exceeding the duty leviable on the notified goods in respect of which aforesaid
contravention has been committed.

[(2) If it
is found that goods have been manufactured in or cleared from a unit which is
not registered with the jurisdictional Central Excise Office, then the duty
liability of such unit shall be determined on the basis of number of packing
machines found available in the premises of the unit and the retail sale price
of the pouches manufactured with the aid of such packing machines and unless
evidence to the contrary is provided to the satisfaction of the Central Excise
Officer, such machines shall be deemed to have been in operation since the [the
first day of April of the financial year in which the unit was found to be not
registered] and shall be construed as operating packing machines for the
purposes of Rule 7 and dealt with accordingly.]

RULE 18.Provisions
to apply mutatis mutandis.
– Except as herein provided, all provisions of
the Act and the Central Excise Rules, 2002, including those relating to
maintenance of daily stock account, removal of goods on invoice, filing of
returns and recovery of dues shall apply mutatis mutandis.


Explanation.
– Unless otherwise specified in these rules, for the
purposes of these rules, the goods shall be deemed to have been manufactured or
produced with the aid of a packing machine, if they are cleared from a factory
where a packing machine is installed, irrespective of whether it is in use or
not, or is in working condition or not.

FORM – 1

[See rule 6]

1.      Name of the manufacturer :

2.      Address of the manufacturing premise :

3.      ECC No :

4.      Address of other premises manufacturing the same products :

5.      Number of single track packing machines available in the factory :

6.      Number of packing machines out of (5), which are installed in the
factory :

7.      Number of packing machines out of (6), which the manufacturer intends to
operate in his factory for production of notified goods :

[8. Number of multiple track or multiple line packing machine, which besides
packing the notified goods in pouches, perform additional processes involving
moulding and giving a definite shape to such pouches with a view to distinguish
the brand or to prevent the counterfeiting of the goods, etc. :

8A.   Number of multiple track or multiple line packing machine, which are
incapable of performing additional processes specified at (8) :

9.      Number of multiple track or multiple line packing machines out of (8)
and (8A), which are installed in the factory [please provide separate figures
for (8) and (8A.)] :

10.    Number of multiple track or multiple line packing machines out of (9),
which the manufacturer intends to operate in his factory for production of
notified goods [please provide separate figures for (8) and (8A)] :]

11.Name of the manufacturer
of each of the packing machine, its identification number, date of its purchase
and the maximum packing speed at which the machines can be operated for packing
of notified goods of various retail sale prices :

12.Description of goods to
be manufactured including whether pan masala or gutkha or both are to be
manufactured, their brand names, etc :

13.Retail sale prices of the
pouches to be manufactured during the financial year :

14.The
ground plan and details of the part or section of the factory premises intended
to be used by him for manufacture of notified goods of different retail sale
prices and the number of machines intended to be used by him in each of such
part or section :

15.    Declaration :

(a)      I/We further declare that
the particulars furnished above are true and correct in all respects. In case
any particulars are found to be untrue/incorrect, I/We undertake to pay any
additional amount of excise duty on pan masala and pan masala containing tobacco
manufactured by me/us as per provisions of the Central Excise Act, 1944 (1 of
1944) or the rules or notifications issued thereunder.

(b)      I/We further undertake that
any addition or removal of the packing machine would be done under the physical
supervision of the Central Excise Officer as per the procedure provided in the
Pan Masala Packing Machines (Capacity Determination and Collection of Duty)
Rules, 2008.

(c)      I/We hereby agree to abide
by the provisions and conditions of the Pan Masala Packing Machines (Capacity
Determination and Collection of Duty) Rules, 2008 .

Place :

Date :                             

Name, residential address and signature of

                                  manufacturer/authorized
agent.

 


FORM – 2


[See rule 9]

1.      Name of the manufacturer :

2.      Address of the manufacturing premise :

3.      ECC No. :

4.      I/We hereby confirm that we have paid a sum of Rs……………,
towards the duty liability for the month of………………….as per
*particulars given below :

(* Particulars in the given format may be given separately for each MRP)

(i)       Retail
sale price of the pouches manufactured during the month

(ii)     No. of
packing machines installed and operated in the factory for each RSP

(iii)    Duty
payment particulars

Date of payment

Name and address of the Bank and branch

Amount of duty paid (Rs.)

 

 

 

(iv)   Break-up
of duty payment for apportionment between various duties is as per details below
:-

Duty

Duty ratio for pan masala

Duty paid (Rs.)

Duty ratio for pan masala containing tobacco

Duty paid (Rs.)

The duty
leviable under the Central Excise Act, 1944

0.3161

 

0.7355

 

The
additional duty of excise leviable under section 85 of the Finance Act,
2005

0.1355

 

0.0883

 

National
Calamity Contingent Duty leviable under section 136 of the Finance Act,
2001

0.5193

 

0.1471

 

Education
Cess leviable under section 91 of the Finance Act, 2004

0.0194

 

0.0194

 

Secondary
and Higher Education Cess leviable under section 136 of the Finance Act,
2007

0.0097

 

0.0097

 

5. Copies of
Bank challans are enclosed as per following details :

Place :

Date :
                                
Name, residential address and

                                   signature of manufacturer/

  
                                     
authorised agent.