Budgetary changes for levy of Central Excise duty on notified goods falling under Ch. 24 - Instructions - Central Excise - GENERAL INSTRUCTION NO. 07/2015

GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE,CUSTOMS S. TAX, NO.71, CLUB ROAD, BELGAUM - 590 001 DATED 28.02.2015 GENERAL INSTRUCTION NO. 07/2015 Sub : Budgetary changes for levy of Central Excise duty on notified goods falling under Ch. 24 - Instructions - Reg., Refer to Notification No.. 04/2015 -CE(NT) and 05/2015 - CE(NT) both dated 01.03.2015 wherein new rules amending Chewing Tobacco and Un-manufactured Tobacco Packing machines (Capacity determination and collection of duty) Rules, 2010 and Pan Masala Packing machines (Capacity determination and collection of duty) Rules, 2008 respectively have been introduced with immediate effect. 2. As per the amended Rules, maximum speed of packing machine for packages of notified goods of various retail sale prices is being specified as a factor relevant to production for determining excise duty payable under the Compounded Levy Scheme presently applicable to pan masala, gutkha and chewing tobacco. In this regard, section 3A of the Central Excise Act, 1944 is being amended to insert an Explanation so as enable the Central Government to specify more than one factor relevant to production. Clause 90 of the Finance Bill, 2015 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this amendment will come into force with immediate effect. Accordingly, deemed production and duty payable per machine per month are being notified with reference to the speed range in which the maximum speed of a packing machine for packages of various retail sale prices falls. 3. Consequential amendments have been carried out in the Pan Masala Packing machines (Capacity Determination and Collection of Duty) Rules, 2008 and Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010. Rule 6(vii) of the said Rules provide that the manufacturer in the prescribed Form 1 shall declare the maximum packing speed at which the packing machine can be operated for packing of pouches of notified goods of various retail sale prices. A proviso is being inserted in sub-rule (3) of rule 6 of the said Rules so as to enable the AC / DC, as the case may be, to re-determine the annual capacity of production within 3 working days of the coming into force of the Packing machines (Capacity Determination and Collection of Duty) Amendment Rules, 2015 and Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Amendment Rules, 2015. In this regard, notification No.42/2008-Central Excise dated 1st July 2008 as amended by notification No.6/2015- Central Excise dated 1st March, 2015 and notification No.30/2008-Central Excise (N.T.) dated 1st July, 2008 as amended by notification No.5/2015-Central Excise (N.T.) dated 1 st March, 2015 in respect of Pan Masala and Gutkha refer. Notification No. 16/2010-Central Excise dated 27th February, 2010 as amended by notification No.5/2015-CentraI Excise dated 1 st March, 2015 and notification No. 11/2010-Central Excise (N.T.) dated 27th February, 2010 as amended by notification No.4/2015-Central Excise (N.T.) dated 1st March, 2015 in respect of Chewing tobacco, unmanufactured tobacco, jarda scented tobacco and filter khaini refer. 4. The assessee manufacturing the said goods may be directed to submit Form - 1 and 2 as modified vide Notification Nos. 04/2015 CE.(NT) and 05/2015 - CE(NT) both dated 01.03.2015 and necessary action shall be taken as per amended sub rules 2 and 3 of Rule 6 of both Chewing Tobacco and Un-manufactured Tobacco Packing machines (Capacity determination and collection of duty) Rules, 2010 and Pan Masala Packing machines (Capacity determination and collection of duty) Rules, 2008, as amended. (Issued from file C.N0.lV/16/02/2015 Tech) (B.HARERAM) COMMISSIONER