[TO
BE PUBLISHED IN GAZETTE OF INDIA, EXTRAORDINARY, PART –II, SECTION 3,
SUB-SECTION (i)]
GOVERNMENT
OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification
No. 19/2017 - Central Excise (N.T.)
New Delhi, the
30th June, 2017
G.S.R. (E).- 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 Rules, 2002, except as respects things done or omitted to be
done before such supersession, the Central Government hereby makes the
following rules, namely:-
1. Short title, extent and commencement.-
(1) These rules may be called the Central Excise Rules, 2017.
(2) They extend to the
whole of India.
(3) They shall come into force on the 1 st
day of July, 2017.
2. Definitions.-
(1) In these rules, unless the context otherwise requires, -
(a) "Act"
means the Central Excise Act, 1944 (1 of 1944);
(b)
"assessment" includes self-assessment of duty made by the assessee
under Rule 6 and provisional assessment under rule 7; (c) "assessee"
means any person who
manufacturer of
excisable goods or a registered person of a private warehouse in which
excisable goods are stored and includes an authorised agent of such person;
(d) "Board"
means the Central Board of Excise and Customs constituted under the Central
Board of Revenue Act, 1963 (54 of 1963);
(e) "duty"
means the duty payable under section 3 of the Act;
(f)
"notification" means the notification published in the Official
Gazette;
(g)
"warehouse" means any place or premises registered under rule 9; and
(2) 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.
3. Appointment and jurisdiction of Central
Excise Officers.- (1) The Board may, by notification,
appoint such person as it thinks fit to be Central Excise Officer to exercise
all or any of the powers conferred by or under the Act and these rules.
(2) The Board may, by notification, specify
the jurisdiction of a Principal Chief Commissioner of Central Excise or Chief
Commissioner of Central Excise, as the case may be, Principal Commissioner of
Central Excise or Commissioner of Central Excise, as the case may be or
Commissioner of Central Excise (Appeals) for the purposes of the Act and the
rules made thereunder.
(3) Any Central Excise Officer may exercise
the powers and discharge the duties conferred or imposed by or under the Act or
these rules on any other Central Excise Officer who is subordinate to him.
4 Duty payable on removal.- (1)
Every person who produces or manufactures any excisable goods, or who stores
such goods in a warehouse, shall pay the duty leviable on such goods in the
manner provided in rule 8 or under any other law, and no excisable goods, on
which any duty is payable, shall be removed without payment of duty from any
place, where they are produced or manufactured, or from a warehouse, unless
otherwise provided.
(2) Notwithstanding anything contained in
sub-rule (1), Principal Commissioner or Commissioner, as the case may be, may,
in exceptional circumstances having regard to the nature of the goods and
shortage of storage space at the premises of the manufacturer where the goods
are made, permit a manufacturer to store his goods in any other place outside
such premises, without payment of duty subject to such conditions as he may
specify.
5. Date for determination of duty and
tariff valuation.- The rate of duty or tariff value
applicable to any excisable goods shall be the rate or value in force on the
date when such goods are removed from a factory or a warehouse, as the case may
be.
Explanation.-
If any excisable goods are used within the factory, the date of removal of such
goods shall mean the date on which the goods are issued for such use.
6. Assessment of duty.- The assessee shall
himself assess the duty payable on any excisable goods:
Provided
that in case of cigarettes, the Superintendent or Inspector of Central Excise
shall assess the duty payable before removal by the assessee.
7. Provisional assessment.-
(1) Where the assessee is unable to determine the value of excisable goods or
determine the rate of duty applicable thereto, he may request the Assistant
Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as
the case may be, in writing giving reasons for payment of duty on provisional
basis and the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, may order allowing payment
of duty on provisional basis at such rate or on such value as may be specified
by him.
(2) The payment of duty on provisional basis
may be allowed, if the assessee executes a bond in the form prescribed by
notification by the Board with such surety or security in such amount as the
Assistant Commissioner of Central Excise or the Deputy Commissioner of Central
Excise, as the case may be, deem fit, binding the assessee for payment of
difference between the amount of duty as may be finally assessed and the amount
of duty provisionally assessed.
(3) The Assistant Commissioner of Central
Excise or the Deputy Commissioner of Central Excise, as the case may be, shall
pass order for final assessment, as soon as may be, after the relevant
information, as may be required for finalising the assessment, is available,
but within a period not exceeding six months from the date of the communication
of the order issued under sub-rule (1):
Provided
that the period specified in this sub-rule may, on sufficient cause being shown
and the reasons to be recorded in writing, be extended by the Principal
Commissioner of Central Excise or Commissioner of Central Excise, as the case
may be for a further period not exceeding six months and by the Principal Chief
Commissioner of Central Excise or Chief Commissioner of Central Excise, as the
case may be, for such further period as he may deem fit.
(4) The assessee shall be liable to pay
interest on any amount paid or payable on the goods under provisional
assessment, but not paid on the due date specified under sub-rule (1) of rule 8
and the first proviso thereto, as the case may be, at the rate specified by the
Central Government, vide, notification under section 11AA of the Act, for the
period starting with the first day after the due date till the date of actual
payment, whether such amount is paid before or after the issue of order for
final assessment.
Explanation.
-
For the removal of doubt, it is hereby declared that the goods under
provisional assessment, cleared in the month of January, 2017, say a
provisional duty of Rs. 5000 is paid on the 6th February, 2017 [due date under
sub-rule (1) of rule 8], a further duty of Rs 9000 is paid on the 15th April,
2017, and on the same day the documents for final assessment are submitted by
the assessee. Final assessment order is issued on the 18th June, 2017,
assessing the duty payable on goods as Rs. 15000, and consequently the assessee
pays a duty of Rs 1000 on the 30th June, 2017, then no interest shall be
payable on Rs 5000, interest shall be payable on Rs 9000 from the 7th February,
2017, till the 15th April, 2017, and interest shall be payable on Rs 1000 from
the 7th February, 2017, till the 30th June, 2017, as due date for payment of
duty of Rs 15000 is the 6th February, 2017.
(5) Where the assessee is entitled to a
refund consequent to an order of final assessment under sub-rule (3), then,
subject to sub-rule (6), there shall be paid an interest on such refund as
provided under section 11BB of the Act.
(6) Any amount of
refund determined under sub-rule (3) shall be credited to the Fund:
Provided
that the amount of refund, instead of being credited to the Fund, be paid to
the applicant, if such amount is relatable to-
(a) the duty of excise
paid by the manufacturer, if he had not passed on the incidence of such duty to
any other person; or
(b) the duty of excise
borne by the buyer, if he had not passed on the incidence of such duty to any
other person.
8. Manner of payment.-
(1) The duty on the goods removed from the factory or the warehouse during a
month shall be paid by the 6th day of the following month, if the duty is paid
electronically through internet banking and by the 5th day of the following
month, in any other case:
Provided
that in case of goods removed during the month of March, the duty shall be paid
by the 31st day of March:
Provided
further 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 duty on
goods cleared during a quarter of the financial year shall be paid by the 6th
day of the month following that quarter, if the duty is paid electronically
through internet banking and in any other case, by the 5th day of the month
following that quarter, except in case of goods removed during the last
quarter, starting from the 1st day of January and ending on the 31st day of
March, for which the duty shall be paid by the 31st day of March.
Explanation-1.
- 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.
Explanation-2.
- The manner of payment as specified in this proviso shall be available to the
assessee for the whole of the financial year.
(2) Every assessee shall electronically pay
duty through internet banking:
Provided
that the Assistant Commissioner or the Deputy Commissioner of Central Excise,
for reasons to be recorded in writing, allow an assessee payment of duty by any
mode other than internet banking.
(3) The duty of excise shall be deemed to
have been paid for the purposes of these rules on the excisable goods removed
in the manner provided under sub-rule (1) and the credit of such duty allowed,
as provided by or under any rule.
(4) If the assessee fails to pay the amount
of duty by due date, he shall be liable to pay the outstanding amount along
with interest at the rate specified by the Central Government vide notification
under section 11AA 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.
(5) If the assessee fails to pay the duty
declared as payable by him in the return within a period of one month from the
due date, then the assessee is liable to pay the penalty at the rate of one per
cent on such amount of the duty not paid, for each month or part thereof
calculated from the due date, for the period during which such failure
continues.
Explanation.-
For the purposes of this sub-rule, 'month' means the period between two
consecutive due dates for payment of duty specified under sub-rule (1) or the
first proviso to sub-rule (1), as the case may be.
(6) The provisions of section 11 of the Act
shall be applicable for recovery of the duty as assessed under rule 6 and
mentioned in the return filed under these rules, the interest under sub-rule
(4) and the penalty under sub-rule (5) in the same manner as they are
applicable for recovery of any duty or other sums payable to the Central
Government.
Explanation
1.-
For the purposes of this rule,-
(a) the duty liability
shall be deemed to have been discharged only if the amount payable is credited
to the account of the Central Government by the specified date;
(b) if the assessee
deposits the duty by cheque, the date of presentation of the cheque in the bank
designated by the Central Board of Excise and Customs for this purpose shall be
deemed to be the date on which the duty has been paid subject to realisation of
that cheque.
Explanation
2.-
For the purposes of this rule, the expressions 'duty' or 'duty of excise' shall
also include the amount payable in terms of the CENVAT Credit Rules, 2017.
9. Registration.-
(1) Every person, who produces, manufactures, carries on trade, holds private
store-room or warehouse or otherwise uses excisable goods or an importer who
issues an invoice on which CENVAT credit can be taken, shall get registered:
Provided
that a registration obtained under rule 9 of the Central Excise Rules, 2002
shall be deemed to be valid as the registration made under these rules.
(2) The Board may, by notification and
subject to such conditions or limitations as may be specified in such
notification, specify person or class of persons who may not require such
registration.
(3) The registration under sub-rule (1) shall
be subject to such conditions, safeguards and procedure as may be specified by
notification by the Board.
10. Daily stock account.-
(1) Every assessee shall maintain proper records, on a daily basis, in a
legible manner indicating the particulars regarding description of the goods
produced or manufactured, opening balance, quantity produced or manufactured,
inventory of goods, quantity removed, assessable value, the amount of duty
payable and particulars regarding amount of duty actually paid.
(2) The first page and the last page of each
such account book shall be duly authenticated by the producer or the
manufacturer or his authorised agent.
(3) All such records
shall be preserved for a period of five years immediately after the financial
year to which such records pertain.
(4) The records under this rule may be
preserved in electronic form and every page of the record so preserved shall be
authenticated by means of a digital signature.
(5) The Board may, by notification, specify
the conditions, safeguards and procedure to be followed by an assessee
preserving digitally signed records.
Explanation.-
For the purposes of this rule and rule 11, the expressions,
"authenticate", "digital signature" and "electronic
form" shall have the respective meanings as assigned to them in the
Information Technology Act, 2000 (21 of 2000)
11. Goods to be removed on invoice.-
(1) No excisable goods shall be removed from a factory or a warehouse except
under an invoice signed by the owner of the factory or his authorised agent and
in the case of cigarettes, each such invoice shall also be countersigned Page 6
of 15 by the Inspector of Central Excise or the Superintendent of Central
Excise before the cigarettes are removed from the factory.
(2) The invoice shall be serially numbered
and shall contain the registration number, address of the concerned Central
Excise division, name of the consignee, description, classification, time and
date of removal, mode of transport and vehicle registration number, rate of
duty, quantity and value, of goods and the duty payable thereon:
Provided
that in case of a proprietary concern or a business owned by Hindu Undivided
Family, the name of the proprietor or Hindu Undivided Family, as the case may
be, shall also be mentioned in the invoice:
Provided
further that if goods are directly sent to a job worker on the direction of a
manufacturer, the invoice shall also contain the details of the manufacturer as
buyer and contain the details of job worker as the consignee:
Provided
also that if the goods are directly sent to any person on the direction of the
registered dealer, the invoice shall also contain the details of the registered
dealer as the buyer and the person as the consignee, and that person shall take
CENVAT credit on the basis of the registered dealer's invoice:
Provided
also that if the goods imported under the cover of a bill of entry are sent
directly to buyer's premises, the invoice issued by the importer shall mention
that goods are sent directly from the place or port of import to the buyer's
premises
(3) The invoice shall be prepared in
triplicate in the following manner, namely:-
(i) the original copy
being marked as ORIGINAL FOR BUYER;
(ii) the duplicate copy
being marked as DUPLICATE FOR TRANSPORTER;
(iii) the triplicate
copy being marked as TRIPLICATE FOR ASSESSEE.
(4) Only one copy of invoice book shall be in
use at a time, unless otherwise allowed by the Assistant Commissioner of
Central Excise, or the Deputy Commissioner of Central Excise, as the case may
be, in the special facts and circumstances of each case.
(5) Before making use of the invoice book,
the serial numbers of the same shall be intimated to the Superintendent of
Central Excise having jurisdiction.
(6) The provisions of this rule shall apply
mutatis mutandis to goods supplied by an importer who issues an invoice on
which CENVAT credit can be taken, or a first stage dealer or a second stage
dealer:
Provided
that in case of the first stage dealer receiving imported goods under an
invoice bearing an indication that the credit of additional duty of customs
levied on the said goods under sub-section (5) of section 3 of the Customs
Tariff Act, 1975 (51 of 1975) shall not be admissible, the said dealer shall on
the resale of the said imported goods, indicate on the invoice issued by him
that no credit of the additional duty levied under sub-section (5) of section 3
of the Customs Tariff Act, 1975 (51 of 1975) shall be admissible:
Provided
further that in case of the second stage dealer receiving imported goods under
an invoice bearing an indication that the credit of additional duty of customs
levied on the said goods under sub-section (5) of section 3 of the Customs
Tariff Act, 1975 (51 of 1975) shall not be admissible, the said dealer shall on
the resale of such imported goods, indicate on the Page 7 of 15 invoice issued
by him that no credit of the additional duty levied under sub-section (5) of
section 3 of the Customs Tariff Act, 1975 (51 of 1975) shall be admissible.
(7) An invoice issued under this rule by a
manufacturer may be authenticated by means of a digital signature:
Provided
that where the duplicate copy of the invoice meant for transporter is digitally
signed, a hard copy of the duplicate copy of the invoice meant for transporter
shall be used for transport of goods.
(8) The Board may, by notification, specify
the conditions, safeguards and procedure to be followed by an assessee using
digitally signed invoice.
Explanation.-
For the purposes of these rules, first stage dealer and second stage dealer
shall have the meanings assigned to them in CENVAT Credit Rules, 2017.
12. Filing of return.-
(1) Every assessee shall submit to the Superintendent of Central Excise a
monthly return in the form specified by notification by the Board, of
production and removal of goods and other relevant particulars, within ten days
after the close of the month to which the return relates:
Provided
that an assessee, manufacturing pan masala containing tobacco falling under
tariff item 2403 99 90 and paying duty of Central Excise more than rupees five
lakhs in the month, shall also file, along with the return, for the month to
which the said return relates, a statement summarizing,-
(i) the purchase
invoices for the month with the names and addresses of the suppliers of betel
nut, tobacco and packing material along with the quantity of the said goods
purchased; and
(ii) the sales invoices
for the month with the names and addresses of the buyers, description, quantity
and value of goods sold by the assessee.
Explanation.-
When the goods are not sold from the factory, the address of the premises to
which the goods are dispatched from the factory shall also be provided:
Provided
further that where an assessee is eligible to avail of the exemption under a
notification based on the value of clearances in a financial year, he shall
file a quarterly return in the form specified, by notification, by the Board,
of production and removal of goods and other relevant particulars within ten
days after the close of the quarter to which the return relates.
Explanation
1.
- For the purposes of this proviso, 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.
Explanation
2.
- The filing of returns as specified in this proviso shall be available to the
assessee for the whole of the financial year.
(2 (a) Notwithstanding anything containing
in sub-rule (1), every assessee shall submit to the Superintendent of Central
Excise, an Annual Return for the preceding financial year to which Page 8 of 15
the return relates in the form specified by notification by the Board by 30th
day of November of the succeeding year.
(b) The Central Government may, by
notification, and subject to such conditions or limitations as may be specified
in such notification, specify assessee or class of assessees who may not be
required to submit such an Annual Return.
(c) The provision of this sub-rule and clause
(b) of sub-rule (7) shall mutatis mutandis apply to a hundred per cent Export-
Oriented Unit.
(3) The proper officer may on the basis of
information contained in the return filed by the assessee under sub-rule (1),
and after such further enquiry as he may consider necessary, scrutinise the
correctness of the duty assessed by the assessee on the goods removed, in the
manner to be prescribed by the Board.
(4) Every assessee shall make available to
the proper officer all the documents and records for verification as and when
required by such officer.
(5) Where any return referred to in this rule
is submitted by the assessee after due date as specified for every return, the
assessee shall pay to the credit of the Central Government, an amount
calculated at the rate of one hundred rupees per day subject to a maximum of
twenty thousand rupees for the period of delay in submission of each such return
or statement
(6) The Central Board of Excise and Customs
may, by an order extend the period specified in this rule by such period as
deemed necessary under the circumstances of special nature to be specified
therein.
(7) (a) An assessee, who has filed a return
in the form referred to in sub-rule(1) within the date specified under that
sub-rule or the second proviso thereto, may submit a revised return by the end
of the calendar month in which the original return is filed.
Explanation.-
Where an assessee submits a revised return under clause (a), the 'relevant
date' for the purpose of recovery of Central Excise duty, if any, under section
11A of the Act shall be the date of submission of such revised return.
(b) An assessee who has filed Annual Return
referred to in clause (a) of sub-rule (2) by the due date mentioned in clause
(a) of that sub-rule, may submit a revised return within a period of one month
from the date of submission of the said Annual Return.
13. 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
evasion of duty, nature and type of offences or such other factors as may be
relevant, is of the opinion that in order to prevent evasion of, or default in
payment of duty of excise, it is necessary in the public interest to provide
for certain measures including restrictions on a manufacturer, a registered
importer, first stage and second stage dealer or an exporter may, by notification
in the Official Gazette, specify the nature of restrictions including
suspension of registration in case of an importer or a dealer, types of
facilities to be withdrawn and procedure for issue of such order by the
Principal Chief Commissioner of Central Excise or Chief Commissioner of Central
Excise, as the case may be.
14. Special procedure for payment of duty.-
(1) The Central Government may, by notification, specify the goods in respect
of which an assessee shall have the option to pay the duty of excise on the
basis of such factors as may be relevant to production of such goods and at
such rate as may be specified in the said notification, subject to such
limitations and conditions, including those relating to interest or penalty, as
may be specified in such notification.
(2) The Central Government may also specify
by notification the manner of making an application for availing of the special
procedure for payment of duty, the abatement, if any, that may be allowed on
account of closure of a factory during any period, and any other matter
incidental thereto.
15. Credit of duty on goods brought to the
factory. - (1) Where any goods on which duty had been paid at
the time of removal thereof are brought to any factory for being re-made,
refined, re-conditioned or for any other reason, the assessee shall state the
particulars of such receipt in his records and shall be entitled to take CENVAT
credit of the duty paid as if such goods are received as inputs under the
CENVAT Credit Rules, 2017 and utilise this credit according to the said rules.
(2) If the process to which the goods are
subjected before being removed does not amount to manufacture, the manufacturer
shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in
any other case the manufacturer shall pay duty on goods received under sub-rule
(1) at the rate applicable on the date of removal and on the value determined
under sub-section (3) of section 3 or section 4 or section 4A of the Act, as the
case may be.
Explanation:-
The
amount paid under this sub-rule shall be allowed as CENVAT credit as if it was
a duty paid by the manufacturer who removes the goods.
(3) If there is any difficulty in following
the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the
goods for being re-made, refined, re-conditioned or for any other reason and
may remove the goods subsequently subject to such conditions as may be
specified by the Principal Commissioner or Commissioner, as the case may be.
16. Warehousing provisions.-
(1) The Central Government may by notification, extend the facility of removal
of any excisable goods from the factory of production to a warehouse, or from
one warehouse to another warehouse without payment of duty.
(2) The facility under sub-rule (1) shall be
available subject to such conditions, including penalty and interest,
limitations, including limitation with respect to the period for which the
goods may remain in the warehouse, and safeguards and procedure, including in
the matters relating to dispatch, movement, receipt, accountal and disposal of
such goods, as may be specified by the Board.
(3) The responsibility for payment of duty on
the goods that are removed from the factory of production to a warehouse or
from one warehouse to another warehouse shall be upon the consignee.
(4) If the goods dispatched for warehousing
or re-warehousing are not received in the warehouse, the responsibility for
payment of duty shall be upon the consignor.
17. Remission of duty.-
(1) Where it is shown to the satisfaction of the Principal Commissioner or
Commissioner, as the case may be, that goods have been lost or destroyed by
natural causes or by unavoidable accident or are claimed by the manufacturer as
unfit for consumption or for marketing, at any time before removal, he may
remit the duty payable on such goods, subject to such conditions as may be
imposed by him by order in writing:
Provided
that where such duty does not exceed ten thousand rupees, the provisions of
this rule shall have effect as if for the expression "Principal
Commissioner or Commissioner, as the case may be ", the expression
"Superintendent of Central Excise" has been substituted:
Provided
further that where such duty exceeds ten thousand rupees but does not exceed
one lakh rupees, the provisions of this rule shall have effect as if for the
expression "Principal Commissioner or Commissioner, as the case may be”,
the expression "Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be", has been substituted:
Provided
also that where such duty exceeds One lakh rupees but does not exceed five lakh
rupees, the provisions of this rule shall have effect as if for the expression
" Principal Commissioner or Commissioner, as the case may be ", the
expression "Joint Commissioner of Central Excise or Additional
Commissioner of Central Excise, as the case may be", has been substituted.
(2) The authority referred to in sub-rule (1)
shall, within a period of three months from the date of receipt of an
application, decide the remission of duty:
Provided
that the period specified in this sub-rule may, on sufficient cause being shown
and reasons to be recorded in writing, be extended by an authority next higher
than the authority before whom the application for remission of duty is
pending, for a further period not exceeding six months.
18. Rebate of duty.-
Where any goods are exported, the Central Government may, by notification,
grant rebate of duty paid on such excisable goods or duty paid on materials
used in the manufacture or processing of such goods and the rebate shall be
subject to such conditions or limitations, if any, and fulfilment of such
procedure, as may be specified in the notification.
Explanation.-
For the purposes of this rule, "export", with its grammatical
variations and cognate expressions, means taking goods out of India to a place
outside India and includes shipment of goods as provision or stores for use on
board a ship proceeding to a foreign port or supplied to a foreign going
aircraft.
19. Export without payment of duty.-
(1) Any excisable goods may be exported without payment of duty from a factory
of the producer or the manufacturer or the warehouse or any other premises, as
may be approved by the Principal Commissioner or Commissioner, as the case may
be.
(2) Any material may be removed without
payment of duty from a factory of the producer or the manufacturer or the
warehouse or any other premises, for use in the manufacture or processing of
goods which are exported, as may be approved by the Principal Commissioner or
Commissioner, as the case may be.
(3) The export under sub-rule (1) or sub-rule
(2) shall be subject to such conditions, safeguards and procedure as may be
specified by notification by the Board.
20. Removal of goods for job work, etc.-
Any inputs received in a factory may be removed as such or after being
partially processed to a job worker for further processing, testing, repair,
re-conditioning or any other purpose subject to the fulfilment of conditions
specified in this behalf by the Commissioner of Central Excise having
jurisdiction.
21. Special procedure for removal of
semi-finished goods for certain purposes.- The Principal
Commissioner of Central Excise or Commissioner of Central Excise, as the case
may be may by special order and subject to conditions as may be specified by
the Principal Commissioner of Central Excise or Commissioner of Central Excise,
as the case may be, permit a manufacturer to remove excisable goods which are
in the nature of semi-finished goods, for carrying out certain manufacturing
processes, to some other premises and to bring back such goods to his factory,
without payment of duty, or to some other registered premises and allow these
goods to be removed on payment of duty or without payment of duty for export
from such other registered premises.
22. Special procedure for removal of
excisable goods for carrying out certain processes. -
The Principal Commissioner of Central Excise or Commissioner of Central Excise,
as the case may be, by special order and subject to such conditions as may be
specified by him, permit a manufacturer to remove excisable goods manufactured
in his factory, without payment of duty, for carrying out tests or any other process
not amounting to manufacture, to any other premises, whether or not registered,
and after carrying out such tests or any such other process may allow,-
(a) bringing back such
goods to the said factory without payment of duty, for subsequent clearance for
home consumption or export, as the case may be; or
(b) removal of such
goods from the said other premises, for home consumption on payment of duty
leviable thereon or without payment of duty for export, as the case may be:
Provided that this rule
shall not apply to the goods known as "prototypes" which are sent out
for trial or development test.
23. Removal of goods by a Hundred percent
Export-Oriented Undertaking for Domestic Tariff Area.-
(1) Where any goods are removed from a hundred per cent export-oriented
undertaking to domestic tariff area, such removal shall be made under an
invoice by following the procedure specified in rule 11, and the duty leviable
on such goods shall be paid by utilizing the CENVAT credit or by crediting the
duty payable to the account of the Central Government in the manner specified
in rule 8.
(2) The unit shall maintain in the form
specified by notification by the Board appropriate account relating to
production, description of goods, quantity removed, and the duty paid.
(3) The unit shall electronically submit a
monthly return, in the form specified, by notification, by the Board, to the
Superintendent of Central Excise, within ten days from the close of the month
to which the return relates, in respect of excisable goods manufactured in, and
receipt of inputs and capital goods in, the unit:
Provided
that the Central Board of Excise and Customs may, by an order extend the period
by such period as deemed necessary under the circumstances of special nature to
be specified therein.
(4) The proper officer may on the basis of
information contained in the return filed by the unit under sub-rule (3), and
after such further enquiry as he may consider necessary, scrutinise the
correctness of the duty assessed by the assessee on the goods removed, in the
manner to be prescribed by the Board.
(5) Every assessee shall make available to
the proper officer all the documents and records for verification as and when
required by such officer.
(6) Where the return is submitted under
sub-rule (3) by the assessee after the due date as mentioned in that sub-rule,
the assessee shall pay to the credit of the Central Government, an amount
calculated at the rate of one hundred rupees per day subject to a maximum of
twenty thousand rupees for the period of delay in submission of each return.
(7) An assessee, who has filed a return in
the form referred to in sub-rule (3) within the date specified under that
sub-rule, may submit a revised return by the end of the calendar month in which
the original return is filed.
Explanation.-
Where an assessee submits a revised return under this sub-rule, the “relevant
date” for the purpose of recovery of Central Excise duty, if any, under section
11A of the Act shall be the date of submission of such revised return.
24. Access to a registered premises.-
(1) An officer empowered by the Principal Commissioner or Commissioner, as the
case may be in this behalf shall have access to any premises registered under
these rules for the purpose of carrying out any scrutiny, verification and
checks as may be necessary to safeguard the interest of revenue.
(2) Every assessee, an importer who issues an
invoice on which CENVAT credit can be taken, first stage and second stage dealer
shall furnish to the officer empowered under subrule (1), a list in duplicate,
of all the records prepared and maintained for accounting of transaction in
regard to receipt, purchase, manufacture, storage, sales or delivery of the
goods including inputs and all the financial records and statements (including
trial balance or its equivalent).
(3) Every assessee, an importer who issues an
invoice on which CENVAT credit can be taken, first stage and second stage
dealer shall, on demand make available to the officer empowered under sub-rule
(1) or the audit party deputed by the Principal Commissioner or Commissioner,
as the case may be or the Comptroller and Auditor- General of India, or a cost
accountant or chartered accountant nominated under section 14A or section 14 AA
of the Act,-
(i) the records
maintained or prepared by him in terms of sub-rule (2);
(ii) the cost audit
reports, if any, under section 148 of the Companies Act, 2013 (18 of 2013); and
(iii) the income-tax
audit report, if any, under section 44 AB of the Income-tax Act, 1961 (43 of
1961),
for the scrutiny of the
officer or the audit party or the cost accountant or chartered accountant,
within the time limit specified by the said officer or the audit party or the
cost accountant or chartered accountant, as the case may be.
25. Power to stop and search.-
Any Central Excise Officer, may search any conveyance carrying excisable goods
in respect of which he has reason to believe that the goods are being carried
with the intention of evading duty.
26. Power to detain or seize goods.-
If a Central Excise Officer, has reason to believe that any goods, which are
liable to excise duty but no duty has been paid thereon or the said goods were
removed with the intention of evading the duty payable thereon, the Central
Excise Officer may detain or seize such goods.
27. Return of records.-
The books of accounts or other documents, seized by the Central Excise Officer
or produced by an assessee or any other person, which have not been relied on
for the issue of notice under the Act or the rules made thereunder, shall be
returned within thirty days of the issue of said notice or within thirty days
from the date of expiry of the period for issue of said notice:
Provided
that the Principal Commissioner of Central Excise or Commissioner of Central
Excise, as the case may be, may order for the retention of such books of
accounts or documents, for reasons to be recorded in writing and the Central
Excise Officer shall intimate to the assessee or such person about such
retention.
28. Confiscation and penalty.-
(1) Subject to the provisions of section 11 AC of the Act, if any producer,
manufacturer, registered person of a warehouse, or an importer who issues an
invoice on which CENVAT credit can be taken, or a registered dealer,
(a) removes any
excisable goods in contravention of any of the provisions of these rules or the
notifications issued under these rules; or
(b) does not account
for any excisable goods produced or manufactured or stored by him; or
(c) engages in the
manufacture, production or storage of any excisable goods without having
applied for the registration certificate required under section 6 of the Act;
or
(d) contravenes any of
the provisions of these rules or the notifications issued under these rules
with intent to evade payment of duty,
then, all such goods
shall be liable to confiscation and the producer or manufacturer or registered
person of the warehouse, or an importer who issues an invoice on which CENVAT
credit can be taken, or a registered dealer, as the case may be, shall be
liable to a penalty not exceeding the duty on the excisable goods in respect of
which any contravention of the nature referred to in clause (a) or clause (b)
or clause (c) or clause (d) has been committed, or five thousand rupees,
whichever is greater.
(2) An order under sub-rule (1) shall be
issued by the Central Excise Officer, following the principles of natural
justice.
29. Penalty for certain offences.-
(1) Any person who acquires possession of, or is in any way concerned in
transporting, removing, depositing, keeping, concealing, selling or purchasing,
or in any other manner deals with, any excisable goods which he knows or has
reason to believe are liable to confiscation under the Act or these rules, shall
be liable to a penalty not exceeding the duty on such goods or two thousand
rupees, whichever is higher:
Provided
that where any proceeding for the person liable to pay duty have been concluded
under clause (a) or clause (d) of sub-section (1) of section 11AC of the Act in
respect of duty, interest and penalty, all proceedings in respect of penalty
against other persons, if any, in the said proceedings shall also be deemed to
be concluded.
(2) Any person, who issues-
(i) an excise duty
invoice without delivery of the goods specified therein or abets in making such
invoice; or
(ii) any other document
or abets in making such document, on the basis of which the user of said
invoice or document is likely to take or has taken any ineligible benefit under
the Act or the rules made thereunder like claiming of CENVAT credit under the
CENVAT Credit Rules, 2017 or refund, shall be liable to a penalty not exceeding
the amount of such benefit or five thousand rupees, whichever is higher.
30. General penalty.-
A breach of these rules shall, where no other penalty is provided herein or in
the Act, be punishable with a penalty which may extend to five thousand rupees
and with confiscation of the goods in respect of which the offence is
committed.
31. Confiscated property to vest in Central
Government.- (1) When any goods are confiscated
under these rules, such thing shall thereupon vest in the Central Government.
(2) The Central Excise Officer adjudging
confiscation shall take and hold possession of the things confiscated, and
every Officer of Police, on the requisition of such Central Excise Officer,
shall assist him in taking and holding such possession.
32. Disposal of confiscated goods.- Confiscated
goods in respect of which the option of paying a fine in lieu of confiscation
has not been exercised, shall be sold, destroyed or otherwise disposed of in
such manner as the Principal Commissioner or Commissioner, as the case may be
may direct.
33. Storage charges in respect of goods
confiscated and redeemed.- If the owner of the goods, the
confiscation of which has been adjudged, exercises his option to pay fine in
lieu of confiscation, he may be required to pay such storage charges as may be
determined by the adjudicating officer.
34. Power to issue supplementary
instructions.- The Board or the Principal Chief
Commissioner or Chief Commissioner, as the case may be or the Principal
Commissioner or Commissioner, as the case may be, may issue written
instructions providing for any incidental or supplemental matters, consistent
with the provisions of the Act and these rules.
35. Transitional provision. -
(1) Any notification, circular, instruction, standing order, trade notice or
other order issued under the Central Excise (No. 2) Rules, 2001 or Central Excise
Rules, 2002, as the case may be, by the Central Government, the Central Board
of Excise and Customs, the Principal Chief Commissioner of Central Excise or
Chief Commissioner of Central Excise, as the case may be or the Principal
Commissioner of Central Excise or Commissioner of Central Excise, as the case
may be, 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
Central Excise (No. 2) Rules, 2001 or Central Excise Rules, 2002, as the case
may be, and any provision thereof, on the commencement of these rules, be
construed as references to the Central Excise Rules, 2017 and any corresponding
provision thereof.
[F. No.
201/08/2017-CX.6]
(ROHAN)
Under Secretary to the Government of India
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