Central Excise (6th Amendment) Rules, 1988 - 28/88 - Central Excise - Non Tariff

Central Excise (6th Amendment) Rules, 1988

Notification No. 28/88-C.E. (N.T.)

Dated 6-10-1988

In exercise of the powers conferred by sub-section (1) of section 5A 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 :-

1. (1) These rules may be called the Central Excise (6th Amendment) Rules, 1988.

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

2. In the Central Excise Rules, 1944, -

(a) in rule 57D, in sub-rule (2), for the proviso, the following proviso shall be substituted, namely :-

"Provided that such intermediate products are -

(a) used within the factory of production in the manufacture of final product on which the duty of excise is leviable whether in whole or in part; and

(b) specified as inputs or as final product under a notification issued under rule 57A.";

(b) in rule 57F, after sub-rule (5), the following sub-rule shall be inserted, namely :-

"(6) On an application made by a manufacturer, the Collector may, subject to such conditions and limitations as he may impose, permit a manufacturer having credit in his account in form RG 23A and lying unutilised on account of shifting of the plant or factory, belonging to the manufacturer, to another site, to transfer the credit in the account aforesaid to such factory of the same manufacturer."

(c) in rule 57-I, for sub-rule (1), the following sub-rule shall be substituted, namely :-

"(1)(i) Where credit of duty paid on inputs has been taken on account of an error, omission or misconstruction, on the part of an officer or a manufacturer, or an assessee, the proper officer may, within six months from the date of such credit, serve notice on the manufacturer or the assessee who has taken such credit requiring him to show cause why he should not be disallowed to such credit and where the credit has already been utilised, why the amount equivalent to such credit should not be recovered from him :

Provided that where such credit has been taken on account of wilful mis-statement, collusion or suppression of facts on a part of a manufacturer or an assessee, the provisions of this clause shall have effect as if for the words "six months" the word "five years" were substituted.

(ii) The proper officer, after considering the representation, if any, made by the manufacturer or the assessee on whom notice is served under clause (i), shall determine the amount of such credit to be disallowed (not being in excess of the amount specified in the show cause notice) and thereupon such manufacturer or assessee shall pay the amount equivalent to the credit disallowed, if the credit has been utilised, or shall not utilise the credit thus disallowed".