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 (1)
These rules may be called the Central
Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of
Excisable Goods) Rules, 2001. (2)
They extend to the whole of India. (3)
They shall come into force on and from
the 1st day of July, 2001. These rules shall apply to a
manufacturer who intends to avail of the benefit of a notification issued under
sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944)
(hereinafter referred to as the Act) granting exemption of duty to excisable
goods (hereinafter referred to as subject goods) when used for the purpose
specified in that notification. (1)
A manufacturer who intends to receive
subject goods for specified use at concessional rate of duty, shall make an
application in quadruplicate in the Form at Annexure-I to the jurisdictional
Assistant Commissioner of Central Excise or the Deputy Commissioner of Central
Excise, as the case may be (hereinafter referred to as the said Assistant
Commissioner or Deputy Commissioner). (2)
The manufacturer shall make separate
application in respect of each supplier of subject goods. (3)
The manufacturer shall execute a
general bond with surety or security. (4)
The bond shall be for such amount as
considered appropriate by the said Assistant Commissioner or Deputy
Commissioner, to cover the recovery of duty liability estimated to be involved
at any given point of time. (5)
The application shall be countersigned
by the said Assistant Commissioner or Deputy Commissioner who shall certify
therein that the said person has executed a bond to his satisfaction in respect
of end use of the subject goods and indicate the particulars of such bond. (6)
Of the four copies of the application
referred to in sub-rule (5), one copy shall be forwarded to the jurisdictional
range Superintendent of the manufacturer of the subject goods, two copies shall
be handed over to the manufacturer and one copy shall be retained, by the said
Assistant Commissioner or Deputy Commissioner. (7)
One copy of the application referred to
in sub-rule (6) received by the manufacturer, shall be forwarded by the said
manufacturer to the manufacturer of subject goods. (1)
On the basis of the application
referred to in sub-rule (7) of rule 3, the manufacturer of subject goods shall
avail the benefit of the exemption notification. (2)
The manufacturer of the subject goods
shall record on the application the removal details, such as No. and date of
invoice, description, quantity and value of subject goods and amount of excise
duty paid at concessional rate. The manufacturer, receiving subject
goods, shall maintain a simple account indicating the quantity and value of
subject goods, the quantity of subject goods consumed for the intended purpose,
and the quantify remaining in stock, invoice wise and shall submit a [1][quarterly
return] in Return at Annexure-II to the said Assistant Commissioner or Deputy
Commissioner by the tenth day of the following month. [2]
[The said Assistant Commissioner or Deputy Commissioner shall ensure that the
goods received are used by the manufacturer for the intended purpose and where
the subject goods are not used] by the manufacturer for the intended purpose,
the manufacturer shall be liable to pay the amount equal to the difference
between the duty leviable on such goods but for the exemption and that already
paid, if any, at the time of removal from the factory of the manufacturer of
the subject goods, along with interest and the provisions of section 11A and [3][section
11AA] of the Central Excise Act, 1944 (1 of 1944) shall apply mutatis mutandis
for effecting such recoveries. [4]
[Provided that if the subject goods on receipt are found to be defective or
damaged or unsuitable or surplus to the needs of the manufacturer, he may
return the subject goods to the original manufacturer of the goods from whom he
had obtained these and every such returned goods shall be added to the non-duty
paid stock of the manufacturer of the subject goods and dealt with accordingly]. Explanation. - For the removal of
doubts, it is hereby clarified that subject goods shall be deemed not to have
been used for the intended purpose even if any of the quantity of the subject
goods is lost or destroyed by natural causes or by unavoidable accidents [5][during
transport from the place of procurement to the manufacturer?s premises or from
the manufacturer?s premises to the place of procurement], or during handling or
storage in the manufacturer's premises. Application under Central Excise (Removal of
Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 [Original with 3 copies to be submitted through the
Range Superintendent] To, The Assistant Commissioner or Deputy Commissioner of Central
Excise, Division............. Vide S. No. ........... of Notification No. .......... Central Excise, dated the.........issued under Section 5A(1) of the Central Excise Act, 1.944 read with the
relevant provisions of the Central Excise Act, 1944 (1 of 1944) and the
Central Excise Tariff Act, 1985 ( 5 of 1986) and
other laws for the time being in
force the goods, namely .......... used for the specified purpose of ......... attract the following excise duty.(ies)
(specify rates): Basic excise
duty/Special excise duty /Additional duty(ies)/Other Duty(ies). We undertake to follow the Central Excise (Removal of Goods at
Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 as required by the above notification. The
quantity and value of subject goods, we wish to obtain during the
financial year ........... for the
aforesaid specified purpose is............(specify quantity and value) and we
intend to procure the subject goods for use in our premises
at................... The estimated duty leviable on the subject goods but for the exemption under the
above notification is rupees ............. only (attach calculation sheet) and the
estimated total duty on the subject goods payable at the time of removal un?der
the above notification is rupees .......... only (attach calculation sheet). We also hereby undertake : (a) to use the subject goods ......... for the purpose of .......
and to follow any other condition that the said notification imposes on us; and
(b) to pay on demand, in the event of failure to comply with (a)
above, an amount equal to the difference between the duty leviable on such
quantity of the subject goods but for the exemption under the afore?said
notification and that paid at the time of removal. We have also executed the necessary bond
dated ......... (enclose the bond executed) for your acceptance. Date :?????????????????????????????????????????????????? Signature and stamp of authorised signatory,
with Place :?????????????????????????????????????????????????? name and address of the premise (Endorsement
and counter-signature of the said Assistant Commissioner or Deputy Commissioner
on the application) It is hereby certified that M/s. ............ having their premise at ........... have
executed the bond as required by the said rules, for rupees ................ only, which has been accepted on behalf of the
President of India by the undersigned and entered at S. No. .......... dated .............of Bond Register. F. No. ???????????????????????????????????????????????????????????????????????????????????????????????????????????????? Signature of the said Assistant Commissioner or ????????????????????????????????????????????????????????????????????? Deputy Commissioner with date, name, stamp
and seal Date : Place : [1]
Substituted
by the Central Excise (Removal of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Amendment Rules, 2012 vide Notification No.
13/2012-(N.T.) dated 17.03.2012 for the following : - "monthly
return" [2]
Substituted
by the Central Excise (Removal of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Amendment Rules, 2009 vide Notification No.
14/2009-N.T. Dated 10.06.2009 for the following :- "Where
the subject goods are not used" [3] Substituted by the
Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture
of Excisable Goods) Amendment Rules, 2012 vide Notification No. 13/2012-(N.T.)
dated 17.03.2012 for the following : - "section 11AB" [4] Inserted vide
Notification No. 37/2003 NT dated 17.04.2003 relating to Central Excise
(Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable
Goods) (Amendment) Rules, 2003 [5]
Substituted
for words ?during transport from the place of procurement to the manufacturer?s
premises? vide Notification No. 37/2003 NT dated 17.04.2003 relating to Central
Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of
Excisable Goods) (Amendment) Rules, 2003 w.e.f. 17.04.2003. [6]
Substituted
by the Central Excise (Removal of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Amendment Rules, 2009 vide Notification No.
14/2009-N.T. Dated 10.06.2009 for the following : - Monthly
Return Name of subject goods S.No. Description
of subject goods Details Closing balance Goods manufactured Opening balance Received Total of columns (3) & (4) Quantity consumed for the intended purpose Nature Quantity (1) (2) (3) (4) (5) (6) (7) (8) (9)
Note.- Separate entries should be made
for each variety or class of goods used and manufactured. I/We declare that I/we have compared
the above particulars with the records (and) /books of my/our factory and that
they are, insofar as I/we can ascertain complete. Verified Date
:
Place: Signature of manufacturer Name in capital letters Seal " [7] Substituted by the
Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture
of Excisable Goods) Amendment Rules, 2012 vide Notification No. 13/2012-(N.T.)
dated 17.03.2012 for the following : - "Monthly Return"CENTRAL
EXCISE (REMOVAL OF GOODS AT CONCESSIONAL RATE OF DUTY FOR MANUFACTURE OF
EXCISABLE GOODS) RULES, 2001
PREAMBLE