Compounded Levy Scheme for Stainless Steel Pattis/Pattas - 22/94 - Central Excise - Non Tariff

Compounded Levy Scheme for Stainless Steel Pattis/Pattas

Notification No. 22/94-C.E. (N.T.)

Dated 13-5-1994

In exercise of the powers conferred by section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following rules further to amend the Central Excise Rules, 1944, namely :-

1. (1)  These rules may be called the Central Excise (Third Amendment) Rules, 1994.

(2)  They shall come into force on the date of their publication in the Official Gazette.

2.  In the Central Excise Rules, 1944 (hereinafter referred to as the said rules), in Chapter V, after Section E-V the following section shall be inserted namely :-

"E VI Stainless Steel Pattis/Pattas

96ZA.  Application to avail of special procedure. - (1) Where a manufacturer who subjects stainless steel pattis/pattas falling under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), to the process of cold rolling with the aid of cold rolling machines, makes in the proper form, an application to the Collector, in this behalf, the special provisions contained in this section shall, on such application being granted by the Collector, apply to such manufacturer in substitution of the provisions contained elsewhere than in this section for the period in respect of which the application has been so granted.

(2)  Such application shall be made so as to cover a period of not less than twelve consecutive calendar months, but permission may be granted for a shorter period in the discretion of the Collector.

(3)  If at any time during such period the manufacturer fails to avail himself of the special provisions contained in this section, he shall, unless otherwise ordered by the Collector, be precluded from availing himself of such provisions for a period of six months from the date of such failure.

(4)  If the manufacturer desires to avail himself of the special provisions contained in this section on the expiry of the period for which his application was granted, he shall, before such expiry, make an application to the Collector under sub-rule (1) and on his failure to do so, he shall, unless otherwise ordered by the Collector, be precluded from availing himself of such provisions for a period of six months from the date of such expiry.

96ZB.  Discharge of liability for duty on payment of certain sum. - (1) Having regard to the average production of cold rolled stainless steel pattis/pattas, falling under Chapter 72 of the Schedule to Central Excise Tariff Act, 1985 (5 of 1986), in India per month or per year for cold rolling machines installed for the processing of stainless steel pattis/pattas and any other relevant factor, the Central Government may, by notification in the Official Gazette, fix, from time to time, the rate of duty per month or per year, per each such cold rolling machines, subject to such conditions and limitations hereinafter laid down, and if a manufacturer whose application has been granted under rule 96ZA pays a sum calculated according to such rate of duty in the manner and subject to the conditions and limitations hereinafter laid down, such payment shall be a full discharge of his liability for duty leviable on his production of such cold re-rolled stainless steel pattis/pattas during the period for which the said sum has been paid :

Provided that if there is an alteration in the rate of duty, the sum payable shall be recalculated on the basis of revised rate, from the date of alteration and liability for duty leviable on the production of stainless steel pattis/pattas from that date shall not be discharged unless the differential duty is paid; should, however, the amount of duty so recalculated, be less than the sum paid, the balance shall be refunded to the manufacturer :

Provided further that no credit of duty paid on any material, component part, machinery or finished products used for cold rolling of stainless steel pattis/pattas shall be allowed under this section for making payment of duty referred to in this sub-rule above :

Provided also that when a manufacturer makes an application for the first time under rule 96ZA for availing of the special provisions contained in this section, the duty liability for the month in which the application is granted shall be calculated pro-rata on the basis of the total number of days in that month and the number of days remaining in the months from the date of such grant.

(2)  The sum payable under sub-rule (1) shall be calculated by ap- plication of such rate to the maximum number of cold rolling machines installed by or on behalf of such manufacturer in one or more premises at any time during three calendar months immediately preceding the calendar month in which the application under rule 96ZC is made.

(3)  Such sum shall be tendered by such manufacturer along with such application.

96ZC.  Manufacturer's declaration and accounts. - (1) Such manufacturer shall, at any time during the calendar month immediately preceding any month or part thereof, as the case may be, in respect of which he has been permitted to avail himself of the provision of this section, make an application to the proper officer in the proper Form for leave to remove stainless steel pattis/pattas from his premises during the ensuing month, declaring therein the maximum number of cold rolling machines installed by him or on his behalf, in one or more premises at any time during the calendar month immediately preceding the said calendar month.

(2)  If such application is not made to the proper officer within the time limit laid down in sub-rule (1), the manufacturer shall, unless, otherwise directed by the Collector, and in exceptional circumstances, be liable to pay duty on his entire production of stainless steel pattis/pattas during the month or part thereof in respect of which the application was to be made, at the rate prescribed in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) read with any relevant notification or notifications issued under sub-section (1) of section 5A of the Act.

(3)  Such manufacturer shall also intimate the proper officer in writing of any proposed change in the number of cold rolling machines installed by him or on his behalf, and obtain the written approval of such officer before making any such change.

96ZD.  Exemption from cetain provisions, no rebate of excise duty on export. - (1) During the period in respect of which any manufacturer has been permitted to avail himself of the provisions of this section, he shall be exempt from the operation of all the provisions of rules 9 [except the third proviso to sub-rule (1) thereof], 47, 49, 50, 51, 51A, 52, 52A, 53, 54, 55, 223, 223A, 223B, 224, 224A and 229.

(2)  Except in accordance with such special terms, conditions and limitations as the Central Board of Excise and Customs may hereafter by notification specify in this behalf, no rebate of excise duty shall be paid under rule 12 in respect of any stainless steel pattis/pattas exported out of India, out of the stock produced by such manufacturer during such period.

96ZE.  Penalty for mis-declaration. - A manufacturer who is found to have made an incorrect declaration under sub-rule (1) of rule 96ZC, or to have omitted to furnish or incorrectly furnished the information required by sub-rule (3) of that rule, or to have committed a breach of any of the condition specified in any notification issued under rule 96ZB, shall be liable -

(i)  to pay the difference, if any between the sum actually tendered by him and the sum properly payable, within ten days of a demand for such difference being served upon him by the proper officer;

(ii)  to confiscation of a part or the whole of the stock of stainless steel pattis/pattas lying in the premises of his factory at the time the incorrectness of the declaration or the information or the omission to furnish the information is discovered;

(iii)  to a penalty not exceeding two thousand rupees; and

(iv)  to be debarred from availing of the special procedure specified in this section for such period as the Collector may deem fit.

96ZF.  Provisions regarding new factories and closed factories resuming production. - In the case of manufacturer who commences production for the first time or who recommences production after having ceased production for a continuous period of not less than three months, and who has been permitted by the Collector under sub-rule (1) of rule 96ZA to avail of the special provisions contained in this section, the amount payable by him for the first month or part thereof, as the case may be, shall be provisionally calculated on the basis of his declaration of the maximum number of cold rolling machines that are or are likely to be installed by him or on his behalf during such period. At the expiry of the period, the amount payable shall be recalculated on the basis of the maximum number of cold rolling machines actually installed and if the initial payment falls short of the total liability so determined, the deficiency shall be recovered from the manufacturer. If, however, the total liability is less than the initial deposit, the balance shall be refunded to the manufacturer.

96ZG.  Power to condone failure to apply for special procedure. - Notwithstanding anything contained in this section, the Collector may, at his discretion for reasons to be recorded in writing and subject to such conditions as he may lay down, apply the provisions contained in this section to a manufacturer who has failed to avail himself of the special procedure, or to comply with any condition laid down in this section within the specified time-limit.

96ZGG.  Provision regarding factories ceasing to work or reverting to the normal procedure. - Notwithstanding anything contained in rules 96ZA to 96ZG, where a manufacturer who had availed himself of the special provisions contained in this section ceases to work or reverts to the normal procedure, the duty payable by him in the month during which he has availed himself of the special provisions shall be calculated on the basis of the maximum number of cold rolling machines installed during the last month in the manner prescribed in rule 96ZF and the amount already paid for the month in accordance with rule 96ZB shall be adjusted towards the duty so calculated and on such adjustment if there is any excess payment it shall be refunded to the manufacturer and any deficiency in duty shall be recovered from the manufacturer.

Explanation. - A manufacturer, who ceases to work his factory for one or two shifts only, shall not be deemed to cease to work within the meaning of this rule.".

3.  In rule 173A of the said rules, in sub-rule (2), for the words, figures and letters, "Section C I, E-III or E IX of Chapter V", the words, figures and letters "Section C I, E-III, E VI or E IX of Chapter V" shall be substituted.