Central Excise (17th Amendment) Rules, 1986 - 466/86 - Central Excise - Tariff

Central Excise (17th Amendment) Rules, 1986

Notification No. 466/86-C.E.

Dated 22-12-1986

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 :-

1. (1) These rules may be called the Central Excise (17th Amendment) Rules, 1986.

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

2. In the Central Excise Rules, 1944 -(1)     in rule 173Q -

(i) in sub-rule (1), for clause (bb), the following clauses shall be substituted, namely :-

"(bb) takes credit of duty in respect of inputs for being used in the manufacture of final products wrongly or without taking reasonable steps to ensure that appropriate duty on the said inputs has been paid as indicated in the gate-pass or any other document approved under these rules evidencing the payment of excise duty or the countervailing duty, as the case may be, accompanying thereof, or takes credit of duty which he knows or which he has reason to believe, is not permissible under these rules, or does not utilise the inputs in the manner provided for in these rules, or utilises credit of duty in respect of inputs in contravention of any of the provisions of these rules, or does not render proper and true account of the receipt and disposal of the said inputs and the credit of duty taken thereon as required under these rules, or contravenes any of the provisions contained in Section AA of Chapter V of these rules; or (bbb) enters wilfully any wrong or incorrect particulars in the gate-pass issued for the goods removed by him with intent to facilitate the buyer to avail of credit of the duty in respect of such goods which is not permissible under these rules; or";

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

'Explanation : For the purposes of clause (bb) of sub-rule (1), a person availing of credit of duty on inputs received by him shall be deemed to have taken "reasonable steps" if he satisfies himself about the identity and address of the manufacturer or supplier, as the case may be, issuing the gate-pass or any other document approved under these rules evidencing the payment of excise duty or the countervailing duty, as the case may be, either - (a) from his personal knowledge; or, (b) on the strength of a certificate given by a person with whose hand-writing or signature he is familiar; or (c) on the strength of a certificate issued to the manufacturer or the supplier, as the case may be, by the Superintendent of Central Excise within whose jurisdiction such manufacturer has his factory or the supplier has his place of business:

Provided that where the identity and address of the manufacturer or the supplier is satisfied on the strength of a certificate, the person availing of credit of duty shall retain such certificate for production before the proper officer on demand.";

(2) in rule 209, -

(i) in sub-rule (1), for clause (bb), the following clauses shall be substituted, namely :-

"(bb) takes credit of duty in respect of inputs used in the manufacture of final products wrongly or without taking reasonable steps to ensure that appropriate duty on the said inputs has been paid duty, as the case may be, accompanying thereof, or takes credit of duty which he knows, or which he has reason to believe, is not permissible under these rules, or does not utilise the inputs in the manner provided for in these rules or utilises credit of duty in respect of inputs in contravention of any of the provisions of these rules, or does not render proper and true account of the receipt and disposal of the said inputs and the credit of duty taken thereon as required under these rules, or contravenes any of the provisions contained in Section AA of Chapter V of these rules, or

(bbb) enters wilfully any wrong or incorrect particulars in the gate-pass issued for the goods removed by him with intent to facilitate the buyer to avail of credit of the duty in respect of such goods which is not permissible under these rules, or";

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

'Explanation : For the purposes of clause (bb) of sub-rule (1), a person availing of credit of duty on inputs received by him shall be deemed to have taken "reasonable steps" if he satisfies himself about the identity and address of the manufacturer or supplier, as the case may be, issuing the gate pass or any other document approved under these rules evidencing the payment of excise duty or the countervailing duty, as the case may be, either -

(a) from his personal knowledge; or,

(b) on the strength of a certificate given by a person with whose handwriting or signature he is familiar; or,

(c) on the strength of a certificate issued to the manufacturer or the supplier, as the case may be, by the Superintendent of Central Excise within whose jurisdiction such manufacturer has his factory or the supplier has his place of business:

Provided that where the identity and address of the manufacturer or the supplier is satisfied on the strength of a certificate, the person availing of credit of duty shall retain such certificate for production before the proper officer on demand".