Constitution of Task Force to examine Central Excise Procedure and suggestions for simplification thereof - Regarding - Central Excise - 4/93-CX.6

Constitution of Task Force to examine Central Excise Procedure and suggestions for simplification thereof - Regarding Circular No. 4/93-CX.6 Dated 22-1-1993 [From F.No. 224/l/93-CX.6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Constitution of Task Force to examine Central Excise Procedure and suggestions for simplification thereof - Regarding. You are requested to furnish your comments on the above-mentioned subject. A copy of Office Order No. 1/93-CX.6, dated 22-1-1993 on the above-mentioned subject is enclosed. OFFICE ORDER NO. 1/93-CX.6 In accordance with the decision taken during the meeting of Customs Central Excise Advisory Council held on 7th November, 1992, the Central Board of Excise Customs hereby constitute a Task force comprising of following members for examining Central Excise Procedures and suggesting ways and means for simplification thereof :- Representatives of the Trade :- (i) Shri P.B. Duggal from F.A.S.I.I. (ii) Shri Sanjay Bhatia from A.I.M.O. Departmental Officers : (i) Shri P.K. Jain, Deputy Secretary (CX.6 8) (ii) Deputy Collector (Tech.), Central Excise, Delhi. 2. The subjects assigned for consideration of the Committee are at Annexure-I. 3. Shri P.K. Jain, Deputy Secretary shall coordinate the work of the Task Force. 4. The Task Force shall submit its report by March 31, 1993. Annexure - I Point No. Of the Advisory Council 1. 29 Permission under Rule 173H of CESA, 1944 Under Rule 173H, an assessee can receive back their products for repair etc. within one year of initial removal or warranty period, whichever is later. Collector's prior approval is needed in other cases. Powers should be delegated to Supdt. of Central Excise. Further, manufacturers of capital goods should have general permission. 2. 36 Issue of multiple gate passes for single consignment for purposes of Modvat. Modvat can be availed only on original duty-paying documents. More than one gate pass is needed if goods have to go to several stockists, distributors, etc. The system of supplementary gate passes, involves delays. The question of issue of multiple gate passes for a single consignment may be considered. 3. 39 Suggestion for amendment of Rule 52-A. Rule 52-A should be amended so as to require preparation of gate passes in quadruplicate and not in triplicate form. The original (for Modvat credit) can go to the customer for availing of Modvat credit. The duplicate should be "the carriers copy". The disposal of 3rd and 4th copy should be as at present. The original copy would not thus get misplaced through the negligence of drivers/transporters. 4. 40 Provisional Assessment on RT-12s. RT-12s are often assessed provisionally without recording any specific reasons. This needs to be rectified by amending the rules, if required, to ensure that also called "provisional assessment" will not be considered as such unless specific reasons are indicated in the Assessment Memorandum. 5. 51 Simplified procedure of daily production record (RG-1) for SSI Units : The SSI units in whose cases the invoice constitutes the approved price list and who produces items under one Chapter and one heading only may be permitted to maintain RG-1 in a simple form without identifying the various sizes and items produced. 6. 57 Production accounting adjustment of difference between standard weight and actual weight. Intermediate products, meant for captive consumption, are transferred from one unit to another. Packages, often being bulky, cannot be accurately weighed. A volumetric filling process is therefore resorted to. Production is recorded on the basis of number of packages of standard weight. However, at the time of despatch, goods are physically weighed in weighbridges. This actual weight could be different from the standard weight recorded as production. If adjustment is to be made in the production column, the opening and closing stocks and average weight of the goods cleared will even out. This practice may continue as there will be no significant revenue implication and it will always be possible to accurately assess quantum of despatch and discharge duty correctly. 7. EXCISE DUTY DEPOSIT : Excise duty deposit should be allowed through assessees bankers and should not be restricted only through M/s. Punjab National Bank who even refused to accept cash deposits many a times, resulting in a lot of tension and harassment. 8. NOTIONAL CREDIT : Notional credit should be allowed to be availed by SSI suppliers unit instead of large buyers. 9. 57F(2) PERMISSION : 57 F(2) permission for job work is done on yearly basis resulting in a lot of annual paper work. It was suggested that it should be substituted by a one time intimation and any addition or deletion can be informed as and when need be. 10. SUPPLEMENTARY BILLS : Supplementary bills are raised by ancillary units on account of rate difference. It's authentication by the department involves a lot of paper work, follow up as such should be done on self assessment basis, because many times department insist on verification of orders/letters/bills and many other documents which result in delay and harassment to SSI. 11. REJECTION : Rejection is a part of any manufacturing process. It is verified by Inspectors, as there is no mutual trust, resulting in loss of many productive hours on both sides. It should be allowed on self assessment basis. 12. Any other matters which may be assigned by the Board after the issue of this order.