7th amendment to Excise Rules - Modvat and classification of goods - 17/95 - Central Excise - Non Tariff

7th amendment to Excise Rules - Modvat and classification of goods Notification No. 17/95-C.E. (N.T.) Dated 18-5-1995 In exercise of the powers conferred by section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), (hereinafter referred to as the said Act), 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 (Seventh Amendment) Rules, 1995 . (ii) They shall come into force on the date of their publication in the Official Gazette. 2. In the said rules, in rule 57D, for sub-rule (2), the following sub-rule shall be substituted namely : - "(2) Credit of specified duty allowed in respect of any inputs shall not be denied or varied on the ground that any intermediate products have come into existence during the course of manufacture of final products or such inputs are used in the manufacture of capital goods as defined in rule 57Q and that such intermediate products or capital goods, as the case may be, are for the time being exempt from the whole of the duty of excise leviable thereon or chargeable to `nil' rate of duty : Provided that such intermediate products are used within the factory of production in the manufacture of a final product (other than those cleared either to a unit in a free trade zone, or to a hundred percent Export-Oriented Unit or to a unit in an Electronic Hardware Technology Park or to a unit in Software Technology Parks) on which the duty of excise is leviable whether in whole or in part. Provided further that such intermediate products are specified as inputs or as final products under a notification issued under rule 57A : Provided also that the credit of specified duty shall be allowed in respect of inputs which are used for generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production.". 3. In the said rules, in rule 57F, - (I) for sub-rule (3), the following sub-rule shall be substituted; namely : - (3) Notwithstanding anything contained in sub-rule (1), a manufacturer may after intimating the Assistant Collector of Central Excise having jurisdiction over the factory and obtaining dated acknowledgment of the same, remove the inputs as such, or after the inputs have been partially processed during the course of manufacture of final products, to a place outside the factory, - (a) for the purposes of test, repairs, refining, re-conditioning or carrying out any other operation necessary for the manufacture of the final products and return the same to his factory, for, - (i) further use in the manufacture of the final product; or (ii) removing the same without payment of duty under bond for export; or (iii) removing the same after payment of duty for home consumption. Provided that the waste, if any, arising in the course of such operation is also returned to the said factory; (b) for the purposes of manufacture of intermediate products necessary for the manufacture of the final products and return the said intermediate products to his factory, for, - (i) further use in the manufacture of the final product; or (ii) removing the same without payment of duty under bond for export; or (iii) removing the same after payment of duty for home consumption. Provided that the waste, if any, arising in the course of such operation is also returned to the said factory; Provided further that the said waste need not be returned to the said factory after the appropriate duty of excise leviable thereon has been paid." (II) In sub-rule (4), in the first proviso, for the words "shall be allowed to be utilised towards payment of duty of excise on similar final products," the words "shall be allowed to be utilised towards payment of duty of excise on any final products" shall be substituted. 4. In the said rules, in rule 57G, in sub-rule (4), for the portion beginning with the words "A manufacturer of the final products" and ending with the words "and return the same to the manufacturer :", the following shall be substituted, namely : - "A manufacturer of the final products shall submit, within five days after the close of each month, to the Superintendent of Central Excise a monthly return indicating the particulars of the inputs received during the month and the amount of credit taken along with the original duty paying documents and extracts of Part I and II of Form RG 23A, every month and the Superintendent of Central Excise shall after verifying their genuineness, deface such documents and return the same to the manufacturer :" 5. In the said rules, in rule 57T, in sub-rule (6), for the portion beginning with the words "A manufacturer of the final products" and ending with the words "and return the same to the manufacturer :", the following shall be substituted, namely : - "A manufacturer of the final products shall submit, within five days after the close of each month, to the Superintendent of Central Excise a monthly return indicating the particulars of the capital goods received during the month and the amount of credit taken along with the original duty paying documents and extracts of Part I and II of Form RG 23C, every month and the Superintendent of Central Excise shall after verifying their genuineness, deface such documents and return the same to the manufacturer :" 6. In the said rules, in rule 173B, after sub-rule (2), the following sub-rules shall be added, namely : - "(3) The proper officer, duly empowered by the Central Government under section 14 of the Act, may, where he considers it necessary during the course of any enquiry in connection with the declaration filed under sub-rule (1) by an assessee, - (a) require any person to produce or deliver any document or thing relevant to the enquiry; and (b) examine any person acquainted with the facts and circumstances of the particulars given in the declaration or other records, in the manner provided in section 14 of the Act. (4) The proper officer may after such further enquiry as he may consider necessary, reassess the correct amount of duty payable following the provisions of section 11A of the Act and the assessee shall pay the deficiency, if any.".