Central Excise Rules - 6th Amendment of 1996 - 25/96 - Central Excise - Non Tariff

Central Excise Rules - 6th Amendment of 1996

Notification No. 25/96-C.E. (N.T.)

Dated 31-8-1996

In exercise of the powers conferred by section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 1944 (hereinafter referred to as the said rules), namely :-

1. (i) These rules may be called the Central Excise (Sixth Amendment) Rules, 1996.

(ii) They shall come into force on the 1st day of September, 1996.

2. In the said rules, in rule 57A, in sub-rule (1), in the Explanation for clause (i), the following clause shall be substituted, namely :-

"(i) machines, machinery, plant, equipment, apparatus, tools, appliances, or capital goods as defined in rule 57Q (other than those used as component parts in the manufacture of final product) used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of the final products or used for any purpose in the factory;".

3. In the said rules, for rule 57C, the following rule shall be substituted, namely :-

"57C. Credit of duty not to be allowed if final products are exempt. - (1) No credit of the specified duty paid on the inputs used in or in relation to the manufacture of a final product whether directly or indirectly and whether contained in the final product or not [other than those cleared either to a unit in a Free Trade Zone or to a hundred per cent Export Oriented Unit or to a unit in an Electronic Hardware Technology Park or Software Technology Parks or supplied to the United Nations or an international organisation for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-Central Excises, dated the 28th August, 1995] shall be allowed if the final product is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty.

(2) Where a manufacturer avails of the credit of specified duty on any inputs and is engaged in the manufacture of any final product which is chargeable to duty as well as in the manufacture of any other final product which is exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty in the same factory, the provisions of sub-rule (1) shall be deemed to be satisfied only when the manufacturer follows the procedure prescribed in sub-rule (1) of Rule 57CC or the provisions of sub-rule (2) of that rule are complied with :

Provided that nothing contained in this sub-rule shall apply to inputs intended to be used as fuel."

4. In the said rules, in rule 57F, -

(i) in sub-rule (3), -

(a) in the opening paragraph, for the words "to a place outside the factory", the words "to a place outside the factory under the cover of a challan specified in this behalf by the Central Board of Excise and Customs" shall be substituted;

(b) in clause (a), for the words "for the manufacture of the final products and return the same to his factory", the words "for the manufacture of the final products and return the same to his factory within a period of sixty days or such extended period as the Assistant Commissioner of Central Excise may allow in this behalf" shall be substituted;

(c) in clause (b), for the words "for the manufacture of the final products and return the said intermediate products to his factory", the words "for the manufacture of the final products and return the said intermediate products to his factory within a period of sixty days or such extended period as the Assistant Commissioner of Central Excise may allow in this behalf" shall be substituted.

(ii) in sub-rule (4), after fourth proviso, the following proviso shall be inserted, -

 "Provided also that the credit of specified duty allowed in respect of any inputs may be utilised towards adjustment of the credit, as provided for under rule 57CC or sub-rule (3A) of rule 57F."

5. In the said rules, in rule 57GG, in sub-rule (4A), after clause (b), the following clause and Explanation shall be inserted, namely :-

"(c) all the copies of the invoice issued by a first stage dealer and a second stage dealer shall also be marked at the top in bold capital letter as FIRST STAGE DEALER and SECOND STAGE DEALER respectively.

Explanation. - For the purposes of this clause the terms "first stage dealer" and the "second stage dealer" shall have the same meaning as specified in rule 57G."

6. In the said rules, in Rule 57Q, -

(I) in sub-rule (1), in Explanation, in clause (1), -

(i) for sub-clause (a), the following sub-clauses shall be substituted, namely :-

"(a) all goods falling under heading Nos. 82.02 to 82.11;

(aa) all goods falling under Chapter 84 (other than Internal Combustion engines falling under heading No. 84.07 or 84.08 and of a kind used in motor vehicles, Compressors falling under heading No. 84.14 and of a kind used in refrigerating and airconditioning appliances and machinery, heading or sub heading Nos. 84.15, 84.18, 8422.10, 84.24, 84.29 to 84.37, 84.40, 84.50, 84.52, 84.69 to 84.73, 84.76, 84.78, expansion valves and solenoid valves falling under sub-heading No.8481.10 of a kind used for refrigerating and airconditioning appliances and machinery);"

(ii) for sub-clause (g), the following sub-clause shall be substituted, namely :-

"(g) tubes and pipes and fittings thereof, used in the factory;"

(iii) for sub-clause (h), the following sub-clause shall be substituted, namely :-

"(h) pollution control equipment; and"

(iv) after sub-clause (h), the following sub-clause shall be inserted, namely :-

"(i) grinding wheels and the like goods falling under sub-heading No. 6801.10".

(II) in sub-rule (2), in clause (ii), for the brackets, words, letters and figures, "[other than those capital goods covered under sub-clause (b) of clause (1) or items (ix) and (x) of sub-clause (d) of clause (1) of Explanation to sub-rule (1)]", the brackets, words, letters, and figures [other than those capital goods covered under sub-clause (d) and (f) of clause (1) of Explanation to sub-rule (1)]" shall be substituted.

7. In the said rules, in rule 57R, in sub-rule (2), the second proviso shall be omitted.

8. In the said rules, in rule 57T, in sub-rule (1), in the first proviso, for the words and figures "and also that he shall not claim depreciation under section 32 of the Income Tax Act, 1961 on that part of the value of capital goods", the words and figures "and also that he shall not claim depreciation under section 32 of the Income Tax Act, 1961, or as revenue expenditure under any other section of the said Income Tax Act, in respect of that part of the value of capital goods" shall be substituted.