Modvat - Amendment to Central Excise Rules - 23/94 - Central Excise - Non Tariff

Modvat - Amendment to Central Excise Rules

Notification No. 23/94-C.E. (N.T.)

Dated 20-5-1994

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. In rule 52A, of the said rules in sub-rule (3) in clause (ii), within the brackets for the words, figures and letter "rule 57G", the following shall be substituted, namely :-

"Rule 57G and Rule 57T" ;

2. In rule 9 of the said rules, in sub-rule (1), third proviso shall be omitted;

3. In rule 49 of the said rules, sub-rule (4) shall be omitted;

4. Rule 56A and Notification Nos. 7/94-Central Excise (N.T.), dated 1st March, 1994, 223/62-Central Excise, dated 28th December, 1962, and 156/85-Central Excise, dated 13th July, 1985, issued thereunder shall be omitted;

5. In rule 57G, after sub-rule (2), the following sub-rule shall be inserted, namely :-

"(2A) Notwithstanding anything contained in sub-rule (2) a manufacturer can take credit of the inputs received in the factory on the basis of the original invoice, if the duplicate copy of invoice has been lost in transit, subject to the satisfaction of the Assistant Collector";

6. In rule 57S of the said rules, in sub-rule (1) :-

(i) in proviso, after the words "where the capital goods" the words "without being used in or in relation to manufacture of final products" shall be inserted;

(ii) in sub-rule (1), after the proviso, the following proviso shall be inserted, namely :-

"Provided further that where the capital goods are removed after being used in or in relation to manufacture of final products from the factory for home consumption on payment of duty of excise or for export under rebate on payment of duty of excise, such duty of excise shall be calculated by allowing deduction of 2.5 per cent of credit taken for each quarter of a year of use or fraction thereof, from the date of availing credit, except where such capital goods are sold as waste and scrap, the duty leviable shall be at the rate applicable on such waste and scrap";

(ii) after sub-rule (4), the following sub-rule shall be inserted, namely:-

"(5) 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 capital goods to a place for test, repairs or reconditioning on such capital goods and return the same to his factory, after the said purpose has been carried out, for further use as such capital goods by following the procedure as prescribed by the Central Board of Excise and Customs or Collector of Central Excise;"

7. In rule 57T of the said rules :-

(i) in sub-rule (2), the words "but before installation or use thereof, for the verification of the said goods with the duty paying document by the said Superintendent" shall be omitted;

(ii) for sub-rule (3), the following sub-rule shall be substituted, namely :-

"(3) No credit of specified duty shall be taken unless such capital goods are received in factory premises of the manufacturer under the cover of invoice or a Bill of Entry or any other document as may be specified under rule 57G evidencing the payment of duty on such capital goods"

Provided that, the Assistant Collector may allow, on sufficient cause being shown, the manufacturer to take credit of the specified duty on capital goods, paid by a contractor or job worker who undertakes the job of initial setting up, renovation, modernisation or expansion of the plant on behalf of the manufacturer of final products, subject to such procedure and conditions as the Collector of Central Excise or Central Board of Excise and Customs may prescribe";

(iii) In sub-rule (4), the words "subject to the verification of such capital goods by the Superintendent of Central Excise with the duty paying documents" shall be omitted;

8. In rule 173G of the said rules :-

(i) the words "gate pass", the words "gate pass or gate passes" and the words "gate passes" wherever they occur shall respectively be substituted by the words "invoice", the words "invoice or invoices" and the words "invoices";

(ii) in sub-rule (2A), for the words "duplicate copies of the gate passes", the words 'triplicate copies of the invoices" shall be substituted.