Central Excise (First Amendment) Rules, 1993 - 08/93 - Central Excise - Non Tariff

Central Excise (First Amendment) Rules, 1993

Notification No. 8/93-C.E. (N.T.)

Dated 2-11-1993

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, namely :-

2. (1) These rules may be called the Central Excise (First Amendment) Rules, 1993.

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

3. In rule 57G, after the sub-rule (4), the following sub-rule (5) shall be inserted, namely :-

"(5) Where a manufacturer was not in a position to make a declaration under sub-rule (1) and makes the declaration subsequently, the Assistant Collector may, for reasons to be recorded in writing, condone the delay in filing of such declarations and allow the manufacturer to take credit of the duty already paid on the inputs even though the procedural requirements laid down under this rule have not been complied with:

Provided that such permission may be granted by the Assistant Collector only when he is satisfied that the -

(a) inputs in respect of which credit of duty is to be allowed were received in the factory not before a period of six months from the date of filing such declaration and not before the date of notification issued under rule 57A;

(b) amount of duty for which credit is sought have actually been paid on such inputs; and

(c)  inputs have actually been used or are to be used in the manufacture of final products."

4. In sub-rule (1) of rule 57D, after the words "manufacture of final product," the following words shall be inserted, namely :-

"or that the inputs have become waste in or in relation to the manufacture of the final product,"

5. In rule 57F,-

(i) sub-rules (1), (1A) and (2) shall respectively be substituted by the following sub-rules, namely :-

"(1) The inputs in respect of which a credit of duty has been allowed under rule 57A may -

(i) be used in, or in relation to, the manufacture of final products for which such inputs have been brought into the factory; or

(ii) shall be removed, after intimating the Assistant Collector of Central Excise having jurisdiction over factory and obtaining a dated acknowledgement of the same, from the factory for home consumption or for export under bond, as if such inputs have been manufactured in the said factory.

Provided that where the inputs are removed from the factory for home consumption on payment of duty of excise, such duty of excise shall in no case be less than the amount of credit that has been allowed in respect of such inputs under Rule 57A.

(2) Notwithstanding anything contained in clause (ii) of sub-rule (1), the inputs in respect of which a credit of duty has been restricted in terms of proviso to Rule 57A, may be removed after intimating the Assistant Collector of Central Excise having jurisdiction over the factory and obtaining dated acknowledgment of the same, from the factory for home consumption on payment of duty of excise equivalent to the credit availed on such inputs.

(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 acknowledgement 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, reconditioning or carrying out any other operation necessary for the manufacture of the final products and return the same to his factory for further use in the manufacture of the final product or remove the same without payment of duty under bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the said factory;

(b) for the purpose of manufacture of intermediate products necessary for the manufacture of the final products and return the said intermediate products to his factory for further use in the manufacture of the final product or remove the same without payment of duty under bond for export, provided that the waste, if any, arising in the course of manufacture of such intermediate products is also returned to the said factory.

Provided that the said waste need not be returned to the said factory if the appropriate duty of excise leviable thereon has been paid,"

(ii) sub-rules (3), (4), (5) and (6) shall be renumbered as sub-rules (4), (5), (6) and (7) respectively.

(iii) after sub-rule (7), the following sub-rule shall be inserted, namely: -

"(8) The credit of Special duty of excise paid on inputs on or prior to the 28th day of February, 1993 may be utilised towards payment of duty on final products cleared subsequent to 28th day of February, 1993 but prior to the 31st day of March, 1994 for the manufacture of which such inputs were permitted to be brought into the factory."

6. Rule 57H shall be substituted by the following rule namely: -

"Rule 57H. Transitional provisions -

(1) Notwithstanding anything contained in rule 57G, every manufacturer who intends to avail of credit of duty paid on inputs received by a manufacturer immediately before obtaining the dated acknowledgement of the declaration made under said rule, shall file a declaration under this sub-rule with the Assistant Collector of Central Excise having jurisdiction over his factory stating that -

(a) such inputs are lying in stock, or are received in the factory after filing the declaration made under rule 57G, or

(b) such inputs are used in the manufacture of final products which are cleared from the factory after filing the declaration made under rule 57G,

and that no credit has been taken by the manufacturer in respect of such inputs under any other rule or notification:

Provided that such inputs are not used in the manufacture of final product which is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty.

(2) Notwithstanding anything contained in rule 57A, no credit of duty paid on the inputs used in the manufacture of a final product (other than those inputs in respect of which credit of duty was allowable under any rule or notification prior to the 1st day of March, 1986, when used in the final products) shall be allowed if duty has been paid on the inputs on or before the 31st day of January 1986.

(3) Every manufacturer who, immediately before filing a declaration under rule 57G, has been availing of, -

(a) the special procedure under rule 56A in respect of materials or component parts for use in the manufacture of finished excisable goods; or

(b) an exemption for giving credit with respect to the duty paid on the materials or component parts used in the manufacture of finished excisable goods,

shall file a declaration under this sub-rule with the Assistant Collector of Central Excise having jurisdiction over his factory, stating that he intends to transfer credit of duty paid on the said materials or component parts received by such manufacturer and lying unutilised immediately before obtaining the dated aknowledgement of the declaration made under rule 57G in his account in R.G. 23 to his account in R.G. 23A:

Provided that the materials and component parts and the finished excisable goods have been specified as inputs and final products, respectively, in the notification issued under rule 57A.

(4) A manufacturer who has filed a declaration under sub-rule (1) or sub-rule (3) may, after obtaining the dated acknowledgement of aforesaid, take credit of the duty paid on the inputs received by him :

Provided that no credit shall be taken unless the inputs were received in the factory under the cover of a Gate Pass, an A.R.I., a Bill of Entry or any other document as may be prescribed by the Central Board of Excise and Customs [constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)] in this behalf evidencing the payment of duty on such inputs and such evidence is made available by the assessee to the department."