Central Excise - Applicability of Central Excise Rules etc. - Collection of Cess - Regarding - Central Excise - 24/89

Central Excise - Applicability of Central Excise Rules etc. - Collection of Cess - Regarding Circular No. 24/89 Dated 11-4-1989 [From F. No. 213/35/88-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Applicability of Central Excise Rules etc. - Collection of Cess - Regarding. Doubts have been raised as to whether assessees who are exempt from paying excise duties either under the Central Excises Salt Act, 1944 or under the Additional Duties of Excise (Goods of Special Importance) Act, 1957, but are required to pay Cess under the Khadi and Other Handloom Industries Development (Additional Excise Duty on Cloth) Act, 1953, are required to observe all Central Excise formalities for payment of such cess or not. 2. The matter has been examined by the Board. Under Section 3(2) of the Khadi and other Handloom Industries Development (Additional Excise duty on Cloth) Act, 1953, the Cess is to be levied and collected in the same manner as duties of excise. This implies that all procedural provisions of Central Excise Act and Rules including those relating to licencing would apply for Cess collection also. 3. The field formations may be suitably advised.