Rule 8 - Manner of payment - Central Excise Rules, 2002

Rule 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 the 4 [6th day of the following month, if the duty is paid electronically through internet banking and by the 5 th 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: 7 [ 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. 16 [Explanation-1. For the removal of doubts, it is hereby clarified that,- 17 [(a) *** ] (b) an assessee, 18 [***] 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.] 10 [***] Explanation.- 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 realization of that cheque. 14 [(1A) Notwithstanding anything contained in sub-rule (1), the duty on the clearances in the month of November, 2015, by an assessee in the 15 [State of Tamil Nadu and the Union Territory of Puducherry (except Yanam and Mahe) ], payable by the 5 th or the 6 th of the December, 2015, as the case may be, shall be paid by the 20 th December, 2015.] 11 [(1B) 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 .] (2) 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. (3) If the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest at the rate of specified by the Central Government vide notification under 8 [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. 12 [(3A) 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 .] (4) The provisions of section 11 of the Act shall be applicable for recovery of the duty as assessed under rule 6 13 [and mentioned in the return filed under these rules, the interest under sub-rule (3) and the penalty under sub-rule 3(A)] in the same manner as they are applicable for recovery of any duty or other sums payable to the Central Government. 2 [Explanation .- 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, 2004. ] **************************** Notes : 1 Has been substituted vide notification no. 13/2006 CE(NT) dated 1-6-2006 , before substitution sub rule 3A was: - (3A) If the assessee defaults in payment of duty by the date prescribed in sub-rule (2) and the same is discharged beyond a period of thirty days from the said date, then the assessee shall forfeit the facility to pay the duty in monthly instalments under sub-rule (1) for a period of two months, starting from the date of communication of the order passed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, in this regard or till such date on which all dues including interest thereof are paid, whichever is later, and during this period notwithstanding anything contained in sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall be required to pay excise duty for each consignment by debit to the account current and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow . 2 Has been inserted vide Notification No. 8/2007 CE (NT) dated 1/3/2007 with effect from the 1st day of April, 2007 3 Has been inserted vide Notification No. 8/2007 CE (NT) dated 1/3/2007 with effect from the 1st day of April, 2007 4 The words, 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 has been substituted vide Notification No. 34/2007 CE (NT) dated 11/9/2007 before it was read as, the 5th day of the following month 5. The words, the 16th day of the following month, if the duty is paid electronically through internet banking and by the 15th day of the following month, in any other case has been substituted vide Notification No. 34/2007 CE (NT) dated 11/9/2007 before it was read as, the 15th day of the following month . 6 Substituted vide notification no. 4/2010 CE(NT) dated 19-2-2010 with effect from 1-4-2010, before it was read as, 'duty of fifty lakhs rupees or more, other than the amount of duty paid by utilization of CENVAT credit, in the preceding financial year 7 Substituted vide notification no. 5/2010 CE(NT) dated 27-2-2010 with effect from 1-4-2010, before it was read as, Provided further that where an assessee is availing of the exemption under a notification based on the value of clearances in a financial year, the duty on goods cleared during a calendar month shall be paid by the 5 [16 th day of the following month, if the duty is paid electronically through internet banking and by the 15 th day of the following month, in any other case] except in case of goods removed during the month of March for which the duty shall be paid by the 31st day of March. 8 Substituted vide notification no. 8/2012 CE(NT) dated 17-3-2012 , before it was read as, Section 11AB 9. Substituted vide Notification No. 15/2013 - Central Excise (N.T.) dated November 22, 2013 w.e.f. 1st day of January, 2014 , before it was read as, rupees ten lakh 10. Omitted vide Notification No. 19/2014 - Central Excise (N.T.), dated 11th July, 2014 with effect from the 1st October , 2014. Before it was read as, 3 [ Provided also that an assessee, who has paid 6 [total duty of 9 [rupees one lakh] or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year], shall thereafter, deposit the duty electronically through internet banking.] 11. Inserted vide Notification No. 19/2014 - Central Excise (N.T.), dated 11th July, 2014 with effect from the 1st October , 2014 12. Substituted vide Notification No. 19/2014 - Central Excise (N.T.), dated 11th July, 2014 , before it was read as, 1 [(3A) If the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilizing the CENVAT credit till the date the assessee pays the outstanding amount including interest thereon; and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow.] 13. Substituted vide Not. 08/2015 - Dated 28-2-2015 , w.e.f. 1st day of March, 2015, before it was read as, and the interest under sub-rule (3) 14. Substituted vide Not. 25/2015 - Dated 9-12-2015 , before it was read as, (1A) Notwithstanding anything contained in sub-rule (1), the duty on the goods removed from the factory or the warehouse, in the State of Gujarat, during the second fortnight of February, 2002 and the month of March, 2002 shall be paid by the 31st March, 2002 : Provided that where an assessee in the State of Gujarat is availing of the exemption under a notification based on the value of clearances in a financial year, the duty on goods cleared during the month of February, 2002 shall be paid by the 31st March, 2002. Explanation.- For removal of doubts, it is hereby clarified that 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. 15. Substituted vide Not. 26/2015 - Dated 18-12-2015 , before it was read as, State of Tamil Nadu 16. Substituted vide Not. 08/2016 - Dated 1-3-2016 , w.e.f. 1.3.2016, before it was read as, 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. 17. Omitted vide Not. 35/2016 - Dated 26-7-2016 before it was read as, (a) an assessee, engaged in the manufacture or production of articles of jewellery, other than articles of silver jewellery but inclusive of articles of silver jewellery studded with diamond, ruby, emerald or sapphire, falling under chapter heading 7113 of the First Schedule of the Tariff Act 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 twelve crore; 18. Omitted vide Not. 35/2016 - Dated 26-7-2016 before it was read as, other than (a) above,