Notes - Notes on clauses - Excise - Finance Act, 2010

Notes on clauses Excise Clause 63 of the Bill seeks to amend sub-section (2B) of section 11A of the Central Excise Act so as to insert an Explanation therein to clarify that no penalty shall be imposed in respect of the voluntary payment of duty short-paid under that sub-section and interest thereon. Clause 64 of the Bill seeks to amend section 32E of the Central Excise Act with a view to substitute the words "but excluding the goods in respect of which no proper record has been maintained by the assessee in his daily stock register", with the words "or otherwise". Clause 65 of the Bill seeks to amend section 32F of the Central Excise Act with a view to provide that the period specified under that section may be extended by the Settlement Commission for a further period not exceeding three months, for reasons to be recorded in writing. Clause 66 of the Bill seeks to amend section 32-O of the Central Excise Act with a view to make certain amendments in sub-section (1) and to omit sub-section (2) to provide that the assessee shall be entitled to apply for settlement in any matter before the Settlement Commission except in the circumstances specified therein. Clause 67 of the Bill seeks to insert a new clause (xiiia) in subsection (2) of section 37 of the Central Excise Act so as to empower the Central Government to make rules to provide for withdrawal of facilities or imposition of restrictions (including restrictions on utilisation of CENVAT credit) on manufacturer or exporter or suspension of registration of dealer, for dealing with evasion of duty or misuse of CENVAT credit. Clause 68 of the Bill seeks to amend the Central Excise Rules, 1944 by inserting a new rule 57CCC in the manner specified in column (3) of Fourth Schedule with retrospective effect, on and from and up to the date specified in column (4) thereof, so as to provide for payment by manufacturer of an amount equal to credit of specified duty attributable to inputs used in or in relation to manufacture of final products not chargeable to duty or chargeable to nil rate of duty before or after clearance of goods along with interest at the rate of twenty-four per cent. per annum. The proposed amendment will apply to cases in respect of which a dispute relating to adjustment of credit on inputs in or in relation to exempted final products relating to the period beginning on the 1st day of September, 1996 to 31st day of March, 2000 (both days inclusive) is pending on the date on which the Finance Bill, 2010 receives the assent of the President. Clause 69 of the Bill seeks to amend rule 57AD of the Central Excise Rules, 1944 in the manner specified in column (3) of the Fifth Schedule with retrospective effect, on or from and up to date specified in column (4) thereof, so as to provide for payment by manufacturer of an amount equal to CENVAT credit attributable to inputs used in or in relation to manufacture of exempted goods before or after clearance of such goods along with interest at the rate of twenty-four per cent. per annum. The proposed amendment will apply to cases in respect of which a dispute relating to adjustment of credit on inputs in or in relation to exempted final products relating to the period beginning on the 1st day of April, 2000 to 30th day of June, 2001(both days inclusive) is pending on the date on which the Finance Bill, 2010 receives the assent of the President. Clause 70 of the Bill seeks to amend rule 6 of the CENVAT Credit Rules, 2001 in the manner specified in column (3) of the Sixth Schedule with retrospective effect, on or from and up to date specified in column (4) thereof, so as to provide for payment by manufacturer of an amount equal to CENVAT credit attributable to inputs used in or in relation to manufacture of exempted goods before or after clearance of such goods along with interest at the rate of twenty-four per cent. per annum. The proposed amendment will apply to cases in respect of which a dispute relating to adjustment of credit on inputs in or in relation to exempted final products relating to the period beginning on the 1st day of July, 2001 to 28th day of February, 2002 (both days inclusive) is pending on the date on which the Finance Bill, 2010 receives the assent of the President. Clause 71 of the Bill seeks to amend rule 6 of the CENVAT Credit Rules, 2002 in the manner specified in column (3) of the Seventh Schedule with retrospective effect, on or from and up to date specified in column (4) thereof, so as to provide for payment by manufacturer of an amount equal to CENVAT credit attributable to inputs used in or in relation to manufacture of exempted goods or goods chargeable to nil rate of duty before or after clearance of such goods along with interest at the rate of twenty-four per cent. per annum. The proposed amendment will apply to cases in respect of which a dispute relating to adjustment of credit on inputs in or in relation to exempted final products relating to the period beginning on the 1st day of March, 2002 to 9th day of September, 2004 (both days inclusive) is pending on the date on which the Finance Bill, 2010 receives the assent of the President. Clause 72 of the Bill seeks to amend rule 6 of the CENVAT Credit Rules, 2004 in the manner specified in column (3) of the Eighth Schedule with retrospective effect, on or from and up to date specified in column (4) thereof, so as to provide for payment by manufacturer of an amount equal to CENVAT credit attributable to inputs or inputs services used in or in relation to manufacture of exempted goods or goods chargeable to nil rate of duty before or after clearance of such goods along with interest at the rate of twenty-four per cent. per annum. The proposed amendment will apply to cases in respect of which a dispute relating to adjustment of credit on inputs in or in relation to exempted final products relating to the period beginning on the 10th day of September, 2004 to 31st day of March, 2008 both days inclusive) is pending on the date on which the Finance Bill, 2010 receives the assent of the President. Clause 73 of the Bill seeks to amend notification issued under rule 5 of the CENVAT Credit Rules, 2004 so as to substitute the words "used in" with the words "used in or in relation to" occurring in clauses (a) and (b) of the said rule 5. Further it proposes to omit the illustration occurring in condition 5 of the Appendix.