Deletion of Rule 56B - Instructions regarding - Central Excise - 28/87

Deletion of Rule 56B - Instructions regarding Circular No. 28/87 Dated 1-7-1987 [From F. No. 212/1/87-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Deletion of Rule 56B - Instructions regarding. Vide Notification No. 165/87-Central Excises, dated 11-6-1987, Rule 56B is proposed to be deleted from the Central Excise Rules, 1944 with effect from 10-12-1987. With the extention of MODVAT to practically all commodities, and with Rule 2(A) of the interpretative rules of the Central Excise Tariff Act, 1985 under which even semi-finished goods are leviable to duty, the provisions of Rule 56B have lost much of their relevance. It has, therefore, been decided to delete Rule 56B of the Central Excise Rules, 1944. Commodities availing of MODVAT will then have to be cleared even in a semi-finished stage on payment of duty or alternatively provision of Rule 57F may be availed of. Most of the commodities not covered by MODVAT have been notified under Rule 56A vide Notification No. 84/87 dated 1-3-1987. Such commodities even if cleared in the semi-finished stage may then have either to pay duty or may be removed under provision of Rule 56A(7). 2. Rule 56B is being deleted after about six months. In this intervening period, it is expected that the Collectors would take appropriate steps to give suitable publicity and to review cases where rule 56B permission has already been granted and align them according to existing provision of law.