Central Excise - Transfer of Credit Balance lying in Personal Ledger Account under one minor head to another minor head - Regarding - Central Excise - 7/93-CX.6

Central Excise - Transfer of Credit Balance lying in Personal Ledger Account under one minor head to another minor head - Regarding Circular No. 7/93-CX.6 Dated 23-4-1993 [From F. No. 202/1/93-CX.6] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Transfer of Credit Balance lying in Personal Ledger Account under one minor head to another minor head - Regarding. The Board has examined the question of utilisation of credit balance of Special Excise Duty (SED) lying unutilised in the PLA consequent to the abolition of SED vide Notification No. 5/93-C.E., dated 28-2-1993. The issue had earlier been examined by the Board the context of abolition of SED vide Notification No. 178/86-C.E., dated 1-3-86 and instructions were issued, in consultation with Chief Controller of Accounts, vide Circular No. 23/86-CX.6, dated 27-6-1986. Board desires that the procedure prescribed therein may be followed, mutatis - mutandis, in case of unutilised credit balance of SED lying in PLA of assessees in your jurisdiction. 2. Trade and field formations may be informed suitably. Copy of Circular No. 23/86-CX.6 dated 27-6-1986 The Board has considered the question of utilisation of the credit balance of SED (Special Excise Duty) lying unutilised in the PLA consequent on the abolition of Special Excise Duty vide Notification No. 178/86-C.E., dated 1-3-1986. Under Circular No. 30/80 issued from the Board's F.No. 202/ 39/80-CX.6, dated 22-7-1980, a procedure was prescribed according to which if an assessee desires to transfer balance in PLA to another minor head of account, he was to inform in writing to the Range Officer, who would submit the statement to the Collector giving the details etc. which is forwarded to the Chief Accounts Officer. This is a cumbersome procedure. A suggestion has been received that assessees may be permitted to transfer the SED amount towards BED (Basic Excise Duty) straightway instead of having to follow the procedure referred to above. 2. The issue was been examined in consultation with the Chief Controller of Accounts and it has been decided that as SED on all excisable goods has been abolished altogether, there should be no objection to the unutilised amount of SED lying in PLA being allowed to be transferred towards the minor head account of BED. 3. The assessee desiring to transfer the unutilised credit balance of SED to the head of account of BED in his PLA may make an application in quintuplicate indicating, inter-alia, (i) name and address of the assessee, PLA No. sub-major and minor head of account name of the commodity and tariff item balance of SED and (ii) sub major and minor head of BED account, name of the commodity and tariff item to which the amount is to be transferred. On receipt of the said application, the Range Superintendent after making necessary effect checks and verifications will permit the transfer of the credit balance under SED to the BED after indicating the proper head of account and make endorsement to this effect on all copies of the application. One copy of the application bearing the Range Officer's endorsement permitting the transfer shall be forwarded to the C.A.O. so has to enable him to carry out necessary reconciliation/adjustment in his accounts. Other copies will be handed over to the assessee, who would attach the same to the RT-12 pertaining to the month in which the transfer is effected. 4. A consolidated statement in duplicate snowing the unutilised credit in the P.L.A. should be sent by the C.A.O. to the P.A.O. (Pay and Accounts Officer)indicating clearly the sub - major, minor and the detailed head of account to which the credit pertains and also the sub-major/minor head to which the amounts is being transferred. The P.A.O. will carry out the necessary adjustment in the accounts, by means of a transfer entry debiting the amount of the head, "Deduct-Refunds" under the minor head mentioned in the statement and crediting it to the minor head to which it is transferred, and return a copy of the statement to the C.A.O. after recording a certificate to the effect that the amount has been adjusted in " ________" in the accounts for the months of _____ (Minor head).