AMENDMENTS IN EXCISE FOR CA FINAL

AMENDMENTS APPLICABLE FOR NOVEMBER 2007

EXCISE
Rule 8 of CER, 2002 (Pg. 34)
1 In case of non-SSI:-
Provided further that an assessee, who has paid duty of Rs. 50 lakh or more, other than by CENVAT credit, in the preceding financial year, shall thereafter, deposit the duty electronically through internet banking. [Inserted w.e.f. 1-4-2007]
Explanation For the purpose of this rule expression ‘duty’ or ‘duty of excise’ shall also include the amount payable in terms of the Cenvat Credit Rules, 2004. [w.e.f. 1-3-2007]

Rule 11 of CER, 2002(Pg. 36)
2. The invoice shall be serially numbered and shall now also contain
address of the concerned Central Excise Department [Inserted w.e.f. 1-4-2007]
Rule 12 of CER, 2002(Pg. 37)
1. Return:-
Provided that an assessee manufacturing Pan Masala, shall along with monthly return file a statement summarizing:-
à the purchase invoices for the month with the names and addresses of suppliers along with quantity purchased
à the sales invoices for the month with the names and addresses of buyers along with quantity, description and value of goods sold.

Rule 12 of CER, 2002
Indian Ordnance Factories, Department of Defence Production, Ministry of Defence have also been exempted from filing annual information financial statement.

Procedure and facilities for large tax payer
Rule 12BB [w.e.f.30-9-2006]
The provisions of rule 12BB of the Central Excise Rules, 2002 providing for procedures and facilities for the large taxpayer are:
(1) A large taxpayer may remove excisable goods (intermediate goods), without payment of excise duty
® except motor spirit, commonly known as petrol, high speed diesel and light diesel oil
® under the cover of a transfer challan or invoice from any of his registered premises (sender ­premises) where such goods are produced, manufactured or warehoused
® to his other registered premises (recipient premises) for further use in the manufacture or production of such other excisable goods (subject goods).

Such removal of intermediate goods without payment of duty from the sender premises to recipient premises shall be subject to the conditions that­
(a) the subject goods are manufactured using the said intermediate goods and cleared on payment of appropriate duties of excise leviable thereon within 6 months, from the date of receipt of the intermediate goods in the recipient premises; or
(b) the subject goods are manufactured using the said intermediate goods and exported out of India, within 6 months, from the date of receipt of the intermediate goods in the recipient premises, and that any other conditions prescribed by the Commissioner are satisfied.

Explanation 1 The transfer challan or invoice shall be serially numbered and shall contain the registration number, name, address of the large taxpayer, description, classification, time and date of removal, mode of transport and vehicle registration number, quantity of the goods and registration number and name of the consignee.

Provided that, if the subject goods manufactured or produced using the said intermediate goods are not cleared on payment of appropriate duties of excise leviable thereon or are not exported within the said period of 6 months, duties payable on such intermediate goods shall be paid by the recipient premises with interest in the manner and rate specified under section 11 AB of the Act.
Illustration:- Excise duty is payable on intermediate goods, namely, electronics goods, manufactured by factory A which are removed without payment of duties of excise for use in the manufacture of subject goods, namely, machines, in factory B of the large tax payer. In case such machines are not exported or are removed without payment of excise duty, then factory B shall pay duty on the electronic goods so cleared alongwith interest.

Provided further, if any duty is payable on such intermediate goods and, if the said duty is not payable on such subject goods, the said duty of excise as equivalent to the total amount payable on such intermediate goods along with interest under section 11 AB of the Act shall be paid by the recipient premises.
Illustration:- NC duty is payable on intermediate goods namely, polyster yarn manufactured by factory A. Such yarn is removed without payment of duty for use in the manufacture of subject goods, namely, grey fabrics in factory B of LTU(on which NC duty is not payable), then factory B shall pay an amount equal to the NC duty that would have been payable on the polyster yarn alongwith interest.

Explanation 2 The duty payable shall be the duty payable on the date and time of removal of the intermediate goods from the sender's premises.

Explanation 3 If the large taxpayer fails to pay such amount, it shall be recovered along with interest in the same manner as provided under section 11 A and section 11 AB respectively of the Act.
(2) Where a registered premises of a large taxpayer has paid duty in excess of duty payable on account of arithmetical error, it may adjust the excess duty, against his liability for the subsequent period.
However, such adjustment shall be admissible only if the incidence has not been passed on.
(4) A large taxpayer shall submit the monthly returns, as prescribed under these rules, for each of the registered premises.
(5) A large taxpayer, on demand, may be required to make available the financial, production, stores and CENV AT credit records in electronic media, such as, compact disc for carrying out scrutiny.
(6) A large taxpayer may, with intimation of at least 30 days in advance, opt out to be a large taxpayer from the first day of the following financial year.
(7) The provisions of other rules of Central Excise Rules, 2002 in so far as they are not inconsistent with the provisions of this rule shall mutatis mutandis apply in case of a large taxpayer.

Large Tax Payer Unit
Rule 2(ea) “large tax payer unit” means a person who
(i) has one or more registered premises under central excise act or
(ii) has one or more registered premises under Finance Act 1994
and is an assessee under the Income Tax Act, who holds a permanent account number used under section 139A of the said Act and satisfies the conditions and observes the procedures notified by the central government in this regard.












Procedure for large tax payer
Rule 12A of CCR, 2004
A large tax payer may remove inputs or capital goods, except petrol, HSD and LSD, on which credit has been taken, without payment of amount referred in rule 3(5).
But if final product is not cleared on payment of duty or capital goods are used exclusively in the manufacture of exempted goods then amount equal to credit taken on input or capital goods has to be paid.
Other provisions of Rule 12BB shall be applicable here also.

Power to impose restriction
Rule 12CC
® Notwithstanding anything contained in these rules, where the central government,
® having regard to the extent of evasion of duty, nature and type of offences or such other factors as may be relevant,
® is of the opinion that in order to prevent evasion of and default in payment of, excise duty,
® it is necessary in the public interest to provide for certain measures including restrictions on a manufacturer, first stage and second stage dealer or an exporter,
may by a notification in the official gazette, specify nature of restrictions including suspension of registration in case of a dealer, types of facilities to be withdrawn and procedure for issue of such order by an officer authorized by the board. [Inserted w.e.f. 30-12-2006]


Special procedure for removal of excisable goods for carrying out certain processes
Rule 16C (Pg. 40)
® The Commissioner may, by special order and subject to conditions as may be specified by him,
® permit a manufacturer to remove excisable goods manufactured in his factory
for carrying out tests or any other process not amounting to manufacture [Inserted w.e.f. 28-12-2006]
® to some other premises whether registered or not and
® to bring back such goods to his factory, without payment of duty, or to some other registered premises and allow these goods to be removed on payment of duty, or without payment of duty for export from such other registered premises.

Rule 19 of CER, 2002 (Pg. 84)
Rate of interest, when goods are diverted for home consumption, has changed from 24% to the rate mentioned in Section 11AB.


REMAINING TO BE CONTINUED........................