25th March, 2003
Notification No. 24 /2003 - Central Excise (N.T.)
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 further to amend the Central Excise Rules, 2002, namely:-
These rules may be called the Central Excise (Third Amendment) Rules, 2003.
They shall come into force on the date of their publication in the Official Gazette.
In the Central Excise Rules, 2002,-
in rule 4,-
the proviso and Explanation to sub-rule (1) shall be omitted;
sub-rule (3) shall be omitted;
in rule 5, sub-rule (3) shall be omitted;
in rule 11, in sub rule (1), the following proviso shall be inserted, namely,-
"Provided that a manufacturer of yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments falling under Chapter 61 or 62 of First Schedule to the Tariff Act may remove the said goods under a proforma invoice signed by him or his authorised agent. The provisions of sub-rules (2) to (5) shall apply to the proforma invoice except that the said invoice shall not contain the details of the duty payable. The manufacturer shall, within five working days from the issuance of the proforma invoice prepare the invoice in terms of this rule after making adjustments in respect of the goods rejected and returned by the buyer. The proforma invoice and the invoice issued in terms of this sub-rule shall have cross reference to each other by way of their serial numbers.";
in rule 12, for the proviso, the following shall be substituted, namely,-
"Provided further that where an assessee is,-
availing the exemption under a notification based on value of clearances in a financial year; or
manufacturing processed yarn, unprocessed fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 of First Schedule to the Tariff Act; or
manufacturing ready made garments falling under Chapter 61 or 62 of First Schedule to the Tariff Act, which prior to 1st day of April, 2003 were eligible for an exemption under a notification based on value of clearances in a financial year,
he shall file a quarterly return in the form specified by notification be the Board, of production and removal of goods and other relevant particulars, within twenty days after the close of the quarter to which the return relates.";
after rule 12A, the following rule shall be inserted, namely,-
"12B. Job work in textiles and textile articles;-
Notwithstanding any thing contained in these rules, every person (not being an export-oriented unit or a unit located in special economic zone) who gets yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments falling under Chapter 61 or 62 of First Schedule to the Tariff Act, produced or manufactured on his account, on job work (herein after referred to as ‘"the said person") shall obtain registration, maintain accounts, pay duty leviable on such goods and comply with all the relevant provisions of these rules, as if he is an assessee:
Provided that the job worker may, at his option, agree to obtain registration, maintain accounts, pay the duty leviable on such goods, prepare the invoice and comply with the other provisions of these rules. In such a case the provisions of these rules shall not apply to the said person. The job worker, may, at his option, authorize the said person to, on his behalf as his agent, maintain accounts, pay duty, prepare invoice and comply with any of the provisions of these rule except that of rule 9:
Provided further that the job worker may make an option to undertake the activities mentioned in this sub-rule as an agent or person authorized by the said person and in such a case, the said job worker shall be deemed to be the said person.
If the said person desires clearance of excisable goods for home consumption or for exports from the premises of the job worker, he shall pay duty on such excisable goods and prepare an invoice, in the manner referred to in rules 8 and 11 respectively except for mentioning the date and time of removal of goods on such invoice. The original and the duplicate copy of the invoice so prepared shall be sent by him to the job worker from whose premises the excisable goods after completion of job work are intended to be cleared, before the goods are cleared from the premises of the job worker. The job worker shall fill up the particulars of date and time of removal of goods before the clearance of goods.After such clearance the job worker shall intimate to the said person, the date and time of the clearance of goods for completion of the particulars by the said person in the triplicate copy of the invoice.
The said person may supply or cause to supply to a job worker, the following goods, namely,-
inputs in respect of which he may or may not have availed CENVAT credit in terms of the CENVAT Credit Rules. 2002, without reversal of the credit thereon; or
goods manufactured in the factory of the said person without payment of duty;
under a challan, consignment note or any other document (herein after referred to as ‘document") as described in sub- rule (4), duly signed by the him or his authorized agent.
The document shall be in duplicate, in printed (including computer printed) format, having printed running serial numbers on a financial year basis. The document, before it is issued shall be signed by the sender, of the goods referred to in sub-rule (3) or his authorized representative, as the case may be.
The document for the movement of goods from the said person to the job worker shall contain the following information, -
the name, address and registration number of the said person;
the Range, Division and the Commissionerate with whom the said person is registered;
the description, quantity (in terms of kg. /m/ Sq. m) and the value of the goods being sent for the job work;
the date of dispatch of such goods; and
the name and address of the job worker.
The document pertaining to movement of goods from a job worker to another job worker or from a job worker to the said person shall contain, -
the name and address of the job worker (the sender).
the description and quantity (in terms of kg. /m/ Sq. m) of the goods being sent.
the date of dispatch of such goods.
the name and address of the job worker/the said person to whom the goods are being sent ( the receiver).
The responsibility in respect of accountably of the goods, referred to in sub-rule (3) shall lie on the said person.
The job worker, on receipt of the goods mentioned in sub-rule (3) or, as the case may be, from another job worker sent by him in terms of clause (ii) to sub-rule (7), shall duly acknowledge the receipt of the goods on the said document.
Notwithstanding any thing contained in these rules, the job worker shall not be required to get himself registered or shall not be required to maintain any record evidencing the processes under taken for the sole purposes of undertaking job work under these rules unless he has exercised his option in terms of the first or the second proviso to sub-rule (1).
The job worker, with or without completing the job work, may,-
return the goods without payment of duty to the said person; or
send the goods without payment of duty to another job worker; or
clear the goods for home consumption or for exports
subject to receipt of an invoice from the said person, as mentioned in sub-rule (2). The job worker shall clear the goods after filling in the time and date of removal and authenticating such details. The rate of duty on such goods shall be rate in force on date of removal of such goods from the premises of the job worker. No excisable goods shall be removed except under an invoice:
Provided that the goods may be sent under a proforma invoice in terms of proviso to sub rule (1) of rule 11.
The provisions of this rule, mutatis mutandis, be applicable to the goods in the nature of the waste, by-products or like goods arising during the course of manufacture of the goods mentioned in sub-rule (1).
Nothing contained in these rules shall apply to the goods sent from or to an export oriented unit or a unit located in a special economic zone.
Explanation 1. - For the purposes of this rule, "job worker" means a person engaged in manufacture or processing on behalf and under the instructions of the said person from any inputs or goods supplied by the said person or by another job worker or by any other person authorized by the said person, so as to complete a part or whole of the process resulting ultimately in manufacture of yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments falling under Chapter 61 or 62 of First Schedule to the Tariff Act and the term "job work" shall be construed accordingly.
Explanation 2.- For the removal of doubt, it is clarified that if any goods or part thereof is lost, destroyed, found short at any time before the clearance of yarn or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60 or readymade garments falling under Chapter 61 or 62 of First Schedule to the Tariff Act or waste, by-products or like goods arising during the course of manufacture of such goods, the said person shall be liable to pay duty thereon as if the such goods were cleared for home consumption.’.
Deputy Secretary to the Government of India
Footnote.- The principal rules were published in the Gazette of India vide notification No. 4/2002-Central Excise (N.T.), dated the 1st March, 2002, vide number GSR 143 (E), dated the 1st March, 2002, and were last amended vide notification No. 12/2003-Central Excise (N.T.), dated the 1st March, 2003, vide number GSR 102 (E), dated the 1st March, 2002.
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