Central Excise (Second Amendment) Rules, 1987 - 117/87 - Central Excise - Tariff

Central Excise (Second Amendment) Rules, 1987

Notification No. 117/87-C.E.

Dated 15-4-1987

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 :-

l. (1) These rules may be called the Central Excise (Second Amendment) Rules, 1987.

(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 Rule 56A, for sub-rule (9), the following sub-rule shall be substituted, namely :-

"(9) No credit of duty paid on any material, component parts or finished product shall be allowed under this rule if credit of duty paid on such material, component parts or finished product has been taken under Rule 57A".

3. In Rule 57A of the said rules, in sub-rule (1), in the Explanation, -

(a) in clause (iii), the word "or", occurring at the end, shall be omitted;

(b) in clause (iv), the word"; or" shall be inserted at the end.

4. For Rule 57E of the said rules, the following rule shall be substituted, namely :-

"57E. Adjustment in duty credit : - If duty paid on any inputs in respect of which credit has been allowed under Rule 57A, is varied subsequently due to any reason resulting in payment of refund to, or recovery of more duty from, the manufacturer or importer, as the case may be, of such inputs, the credit allowed shall be varied accordingly by adjustment in the credit account maintained under sub-rule (3) of Rule 57G or in the accounts maintained under Rule 9 or sub-rule (1) of Rule 173G, or if such adjustment is not possible for any reason, by cash recovery from or, as the case may be, refund to the manufacturer availing of the credit under Rule 57A".

5. In Rule 57G of the said rules, in sub-rule (2), for the first proviso, the following proviso shall be substituted, namely :-

"Provided that no credit shall be taken unless the inputs are received in the factory under the cover of a Gate Pass, an AR-1, 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:".

6. In Rule 57H of the said rules, for sub-rule (1), the following sub-rule shall be substituted, namely :-

"(1) Notwithstanding anything contained in Rule 57G, the Assistant Collector of Central Excise may allow credit of the duty paid on inputs received by a manufacturer immediately before obtaining the dated acknowledgment of the declaration made under the said rule if he is satisfied that -

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

(ii) such inputs are used in the manufacture of final products which are cleared from the factory on or after the first day of March, 1987,

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".