Redrafting of CBEC’s Supplementary Instructions - Central Excise - F. No. 201/10/2015-CX.6

F. No. 201/10/2015-CX.6 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE ​CENTRAL BOARD OF EXCISE AND CUSTOMS New Delhi, the 6th November, 2015 The Pr. Chief / Chief Commissioner of Central Excise (All) The Pr. Chief / Chief Commissioner of Central Excise and Service Tax (All) The Director General (Audit)/ DGCEI Sub: Redrafting of CBEC s Supplementary Instructions-reg. Madam/ Sir, The undersigned is directed to refer to the CBEC s Supplementary Instructions on Central Excise which stipulates procedures to be followed on various procedural aspects w.r.t. registration, invoice systems, rebate procedure under exports, bonds/ LUTs etc. It may be noted that considerable time has elapsed since these instructions were last issued and several instructions have lost relevance due to changes in law/ procedures over the past few years. 2. In view of above, it is felt that the CBEC s supplementary instructions need to be revisited and redrafted in light of changes in law/ procedures in the recent years. It has been therefore decided to distribute various chapters in the supplementary instructions amongst different zones. A thorough review of the chapter(s) allotted to the respective zone may be conducted at the zonal level. In this regard, please find enclosed the list of chapters allocated to various zones for compilation and redrafting. While redrafting the respective chapters, following points may be noted: i. The language used while redrafting the chapters should be lucid and the contents therein may be made exhaustive for better understanding. ii. The topics referred to under various chapters are only indicative in nature and respective zones may add further topics for sake of clarity and understanding, as deemed fit. iii. All the changes made in the chapters assigned to the zones, at the time of drafting, may be made in track change mode vis- -vis existing manual. A cleaner version (not in track change mode) may also be forwarded. iv. All the relevant notifications, circulars and instructions related to different topics in the chapters should be incorporated at the end of each topic with specific reference to the issue dealt by the said notification/ circular/ instruction. 3. The above exercise may be completed on or before 31.01.2016 and emailed at [email protected] / [email protected] . Your Faithfully (ROHAN) Under Secretary (CX. 6) LIST OF CHAPTERS FOR CBEC s SUPPLEMENTARY INSTRUCTIONS ON CENTRAL EXCISE S. No. Zone Topic Contents 1. Vadodara Background of CEA, 1944, Scope, Definition 1. Features of Indirect Tax 2. Constitution of India 3. Taxation under Constitution 4. Definition 5. Goods and Excisable goods 6. Manufacture, Deemed Manufacture, Manufacturer etc. 2. Ahmedabad Registration, Daily Stock Account Invoices 1. Registration - Procedure, exemption from registration etc. 2. Daily Stock Account 3. Invoice System Procedure 4. Invoices by Dealers etc. 3. Chandigarh Removal of Goods, Payment of duty and Assessment 1. Duty payable on removal, date for determination of duty tariff valuation etc. 2. Assessment 3. Provisional Assessment 4. Accounts to be kept by assesse 5. Payment obligation etc. 4. Mumbai-I Classification 1. General Rules for interpretation of Tariff 2. Principles of classification 3. Tariff and Rates of Excise duty 4. CETA, 1985 etc. 5. Hyderabad Valuation 1. Tariff value, MRP value, Transaction value 2. Assessable value in Central Excise 3. Remission of Duty on Lost/Destroyed goods 4. Exemption from duty, interpretation of exemption notification etc. 6. Coimbatore Records Returns in Central Excise 1. Private Records 2. Returns (Monthly/Quarterly/ Yearly) 3. Electronic maintenance of records, digitally signed records etc. 7. Chennai Export under Central Excise 1. Export without payment of duty (i) Simplified procedure for exempted units (ii) Export to Bhutan/Nepal (iii) Export procedure etc. 2. Export under claim of rebate (i) Export procedure (ii) Self-sealing and self-certification (iii) Examination of goods at the place of dispatch (iv) Export to Nepal/Bhutan (v) Export under claim of rebate of duty paid on excisable material used in the manufacture of goods 8. Meerut Refund 1. Presentation of refund claim, scrutiny 2. Unjust enrichment 3. Payment of Refund, pre-audit/post-audit 4. Consumer Welfare Fund 9. Bhubanesh-war Warehousing 1. Warehousing provision 2. Export warehousing etc. 3. Procedure for warehousing etc. 10. Bhopal Bonds and Letter of Undertaking 1. Bonds and their types 2. Security, surety 3. Verification of surety 4. LUTs etc. 11. Jaipur Exemption in CX 1. Excise concession to SSI units 2. Captive Consumption 3. Job work under CX 4. Area Based exemption 5. EOU/STP/EHTP/BTP (i) EOU and Tax Laws, Excise Procedure by EOUs (ii) Exemption to goods supplied to EOU/STP/EHTP etc. (iii) Deemed Exports 6. Exemption in case of international Competition Bidding 12. Ranchi Settlement Commission Advance Ruling Definitions, powers, procedures, jurisdiction etc. 13. Bangalore/ DGCEI* Search, Seizure, Arrest, Prosecution compounding 1. Powers, provisions, procedures etc. 2. Provisional release of released goods 3. Prosecution of offences 4. Compounding of offences 14. Cochin Demand Notice/ Show Cause Notice, Adjudication 1. Demand of duty 2. Demand of duty for suppression, misstatement, fraud etc. 3. Demand for shortage of goods/ clandestine removal 4. Power of adjudication, adjudication procedure, Option to pay fine lieu of confiscation etc. 15. Delhi Interest, penalty, confiscation, duty payment under protest 1. Interest provisions 2. Penalty for certain offences 3. General penalty etc. 4. Refund to Diplomatic Missions etc. 16. Mysore Appeals and General Provision 1. Condonation of delay 2. Mandatory pre-deposit/day of recovery 3. First appeal, appeal to Tribunal, Procedure before Tribunal etc. 4. Departmental Appeal/review 5. Revision 6. Appeal to High Court, Supreme Court etc. 17. DG (Audit) Audit, Scrutiny 1. Risk based audit 2. Audit powers, procedures etc. 3. Detailed scrutiny of Central Excise returns 18. Vishakhapa-tnam Recovery of Arrears, Provisional attachment 1. Recovery of Dues 2. Attachment provisions 3. Recovery during pendency of appeal etc. 19. Mumbai-II Cenvat Credit 1. Cenvat Credit Scheme 2. Rule 2 : Definitions 3. Capital Goods 4. Inputs 5. Input Service/Output Service 6. Rule 3 : Cenvat Credit 20. Pune** Cenvat Credit 1. Rule 4 : Conditions for allowing Cenvat credit 2. Rule 5 and 5A : Refund of Cenvat Credit 3. Rule 6 : Obligation of a Manufacturer/producer of final products and producer of taxable services 4. Rule 7 and 7A : Manner of distribution of credit by input service distributor and distribution of credit on inputs by office or any other premises of output service provider 5. Rule 8 : Storage of input outside the factory of the manufacturer 6. Rule 9 : Documents, Accounts and Returns 21. Nagpur Cenvat Credit 1. Invoices of manufacturers, Dealers and Service Providers 2. Rule 9A : Information relating to Principal inputs 3. Rule 10 and 10A : Transfer of Cenvat Credit 4. Rule 11 : Transitional Pro-visions 5. Rule 12 : Special provisions for North-East Region, Kutch District of Gujarat, State of Jammu and Kashmir and State of Sikkim 6. Rule 12A : Procedure and Facilities for Large Tax Payers 7. Rule 12AA/ 12AAA : Power to impose restrictions in certain type of cases Registers and Records Details of all House keeping records/registers (copy of format with relevant columns) maintained in each office 22. Kolkata Cenvat Credit 1. Rule 13 : Deemed Credit 2. Rule 14 : Recovery of Cenvat Credit wrongly taken or erroneously refunded 3. Rule 15 and 15A : Confiscation and penalty/ general penalty 4. Rule 16 : Supplementary Provisions 5. Job Work 23. Lucknow Samples Categorization, Procedure, preservation etc. 24. Shillong Cenvat Credit Rule 12 : Special provisions for North-East Region, Kutch District of Gujarat, State of Jammu and Kashmir and State of Sikkim * Bangalore zone shall prepare the draft on provisions relating to Search, Seizure, Arrest, Prosecution Compounding which shall be forwarded to DGCEI for vetting and the final draft shall subsequently be submitted to the Board. ** Pune Zone shall compile the entire chapter on Cenvat Credit after obtaining relevant content (based on allotted topics) from the other four zones viz. Mumbai-II, Nagpur, Kolkata and Shillong.