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TMI BlogProposal to permit SSI units to pay excise duty on a monthly basis with effect from 1.6.1999 based on the Budget Speech 1999-2000 of the Finance MinisterX X X X Extracts X X X X X X X X Extracts X X X X ..... sis with effect from 1st June 1999, Notification No. 36/99-Central Excise (N.T.) dated 26th May, 1999 has been issued whereby new Rule 173GG has been inserted. (The erstwhile Rule 173GG has since been deleted by Notification No. 35/00-Central Excise (N.T.) dated 18.5.99). The Notification No. 36/99-Central Excise (N.T.) dated 26th May, 1999 shall come into effect from 1st June 1999. 2. Under the Central Excise provision, the status of a Small Scale industry is recognised with reference to the exemption granted to a manufacturer on the basis of the aggregate value of the clearances in a financial year. Currently, there are exemption notifications issued under section 5A of the Central Excise Act, 1944 which exempt excisable goods specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be available to such manufacturer for the simple reason that manufacturer will not be entitled to SSI exemptions. 4.An eligible manufacturer who intends to avail this facility is required to give a written interaction to the Jurisdictional Assistant Commissioner or the Deputy Commissioner of Central Excise specifying the month and the date from which he will avail this facility. It is clarified that a manufacturer may avail the facility from any day during a month, and discharged his duty liability by 15th day of the succeeding month for the period covered by this scheme. For example, if a manufacturer intimate 15th June 1999 as the date from which he wishes to avail this facility, he will discharge his duty liability, in respect of remov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing up the excise duty payable on the consignments removed during that calendar month. He will, thereafter, discharge the duty liability latest by the 15th day of the next calendar month by debiting accounts in Form RG-23A part-II or Form RG-23C Part-II or the account current [Personal Ledger Account (PLA)]. The manufacturer shall ensure that at the time of making debit entries, there are sufficient credits available in these accounts to cover up the duty liability. The credit in PLA will continue to be made by cash deposits in the treasury. The receipted copy of TR-6 challans will continue to be submitted with the Quarterly RT-12 Return. 8. In order to ensure that this facility is not misused, provision for charging interest @30% per annu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturers under the said clause to file the return by the 20th day of the close of the quarter. 11. Sub-rule (2) in new Rule 173GG has been made to incorporate a deeming provision which provides that even if the duty payable against the clearances under new Rule 173GG are paid on the monthly basis, the removal shall be deemed to be on payment of duty subject to observance of the prescribed (modified) procedure in Sub-rule (1) of Rule 173GG, and the modvat credit will be available as usual. In other words, the downstream industry (user of the input/capital goods) receiving the inputs/capital goods from the manufacturers working under Rule 173GG will be eligible for modvat credit as if such goods are "duty paid", notwithstanding the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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