Amendment of Central Excise (No. 2) Rules, 2001 for Budget Day restrictions and related instructions - Regarding - Central Excise - F. No. 201/18/2002-CX. 6

F. No. 201/18/2002-CX. 6 Dated 22-2-2002 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Amendment of Central Excise (No. 2) Rules, 2001 for Budget Day restrictions and related instructions - Regarding Notification No. 2/2002-C.E. (N.T.), dated 22nd February, 2002 which amends the Central Excise (No. 2) Rules, 2001 to insert a new rule 30A relating to Budget Day restrictions has been issued on 22nd February, 2002. The new rule has come into force with effect from the date of its issue i.e. 22nd of February, 2002 and would be applied to the Budget to be presented on 28th of February, 2002. Further, Notification No. 3/2002-C.E. (N.T.), dated 22nd February, 2002 has also been issued to prescribe a proper form for the purposes of new rule 30A. A copy each of the said Notifications is enclosed herewith. 2. The Budget Day restrictions shall apply to a factory or a warehouse registered under the Central Excise (No. 2) Rules. Units in a Free Trade Zone or hundred percent export oriented undertaking or a unit in a Special Economic Zone shall also be governed by the provisions of the said rule. 3. Rule 30A provides for restrictions on the removal of goods on the Budget Day, which is the 28th of February this year. The implication of the new Rule is that self-removal procedure gets suspended from the appointed time (11 am, this year) when the Budget is presented, upto 12.00 (midnight) on Budget Day. During this time period the procedures specified below shall apply in respect of clearances/removal of all excisable goods. 4. Self-removal procedure would continue to be in operation for all excisable goods, except for Cigarette, till the time the presentation of Budget commences in the Parliament on the appointed time. 5. The power to give permission for removals/clearances of goods from the appointed time (11 A.M., this year) when the Budget is presented, upto 12.00 (midnight) on Budget Day is vested with the Commissioners. 6. In accordance with the provisions of Central Excise (No. 2) Rules, 2001, as amended by Notification No. 2/2002-C.E. (N.T.), dated 22nd February, 2002, the Board has decided to specify the following procedure for removal/ clearances of goods after 11.00 A.M. on the Budget Day i.e. 28th February, 2002 : - 6.1 The assessee who intends to remove/clear the goods after 11.00 A.M. on 28-2-2002, should make an application in writing in advance to the Commissioner undertaking that he shall pay duty at enhanced rate, if any, that may be applicable to such goods with effect from 1st March, 2002 and that he shall comply with such conditions as the Commissioner may specify in this regard. The application will be made in Form 1 or 2, as the case may be, annexed herewith. Immediate decision should be taken on such requests and permission should be granted in deserving cases and communicated to the assessee in time. 6.2 The assessee, who has been given permission by the Commissioner, will be required to make an application in the Form ARE 4 notified vide Notification No. 3/2002-C.E. (N.T.), dated 22nd February, 2002, and submit the same to the Central Excise Officer, as designated by the Commissioner for this purpose before 5.00 P.M. on 27-2-2002. The proper officer shall acknowledge the receipt of the application(s) immediately. 6.3 An assessee can also file an application even with regard to those goods that may come into existence at any time after the appointed time (11.00 A.M.) and the permission can be granted by the Commissioner subject to such conditions as he may specify. It has been decided that application in relation to goods which are not yet in existence till 11.00 A.M. on Budget Day may be accepted (acknowledged) by the Commissioner in the following situations, namely : - (i) for removal of goods which are utilized within the same factory for further manufacture, or which are cleared to an adjacent factory as an act of continuous process; (ii) in respect of factories having round-the-clock dispatches, for example, cement factories and major steel plants; their dispatches being dependent on allotment of railway wagons, carrying capacity of the wagons and the movement of the loaded wagons by the railways; (iii) for petroleum products cleared through pipelines and petroleum products required for refueling coastal and foreign going vessels and air crafts; (iv) in cases where excisable goods cannot be stored for long or are not capable of being stored; (v) in cases of clearances necessary to maintain essential services; and (vi) in respect of removal for exports. 6.4 The Commissioner will make arrangements to designate an officer in respect of a factory or a group of factories or warehouse or approved store-room so that he is in a position to receive advance applications for clearance after appointed time on the Budget Day which are required to be filed before 5 P.M. on the working day immediately preceding the Budget Day i.e. 27-2-2002. This officer will also supervise removals, countersign the invoice and make entries in the Daily Stock Account where an assessee pays duty on fortnightly basis or make entries in PLA Account of the assessee paying duty consignment-wise, on the Budget Day itself. 6.5 With regard to goods which are yet to come into existence as well as goods which are already in existence, it may be difficult for an assessee to accurately foresee the quantity of goods likely to be removed by him after 11.00 A.M. on the Budget Day for purposes of submitting advance applications of removal on the working day preceding the Budget Day. In such cases, the assessee will be permitted to furnish in advance, a provisional application in Form 1 for the approximate quantity of goods likely to be removed after 11.00 A.M. on the Budget Day. However, such assessee should furnish on the day following the Budget Day (1st March, 2002) the final application in Form 2 for the exact quantity of goods removed. 6.6 The power to give the permission for removal should be exercised by the Commissioner himself. In the Commissionerates where no regular Commissioner has been posted and which are under the charge of a Commissioner holding additional charge, the Additional Commissioner/ Joint Commissioner may give permission in such bona fide and deserving cases. But relaxation thus granted should be brought to the notice of the Commissioner concerned and his approval should be immediately taken. 6.7 It shall be the responsibility of the Commissioner to carefully review the cases in which permissions were granted to ascertain whether there was any enhancement in the rate of duty, and if so, the whether the differential duty was properly accounted for in the Daily Stock Account by as assessee availing fortnightly payment facility. In case an assessee is paying duty consignment-wise, the Commissioner shall ensure that the differential duty, if any, is recovered. 7. Appropriate measures should be taken to ensure that the specified procedure are strictly followed in respect of removals/clearances effected after the appointed time (11.00 A.M.) and action is taken in case of any contravention. 8. Special efforts should be made to inform the public about the availability of self removal facility till 11.00 A.M. on the Budget Day in respect of goods except cigarettes and the instructions contained in this Circular. The field officers should also be properly briefed so that the procedure works smoothly. 9. Receipt of this Circular may please be acknowledged. 10. Hindi version will follow. FORM 1 Provisional Application for Permission for Removal of Excisable Goods on the Budget Day 1. Name of the assessee : 2. Full postal address : 3. Location of the Factory/Warehouse : 4. Registration No. : 5. Excisable commodity : 6. Average quantity of daily removal of excisable goods : 7. Approximate quantity of excisable goods required for removal between 11 A.M. and 12 midnight on the Budget Day : 8. Declarations I/We hereby declare that the above particulars are true and correctly stated. I/We hereby declare that I/we are not able to accurately foresee the quantity of excisable goods likely to be removed by me/us on the Budget Day and I/We shall make an Application in Form 2 on the day immediately following the Budget Day indicating the actual quantity removed. I/We hereby undertake to pay duty on the goods cleared by me/us after 11 A.M. on the Budget Day, at the enhanced rate, effective from the day following the day of the presentation of the Budget. Place : Signature of the Assessee Date : or his Authorised Agent To, The Commissioner of Central Excise, …………………………………… Copy to : The Deputy/Assistant Commissioner of Central Excise, ……………, Division. The Superintendent of Central Excise, ………………………………………… The Central Excise Officer-in-charge of .……………………………………… FORM - 2 Application for Permission to Remove Excisable goods after 11 a.m. on the Budget Day 1. Name of the assessee : 2. Full postal address : 3. Location of the Factory/Warehouse : 4. Registration No. : 5. Excisable commodity : 6. Special reasons for relaxation sought : 7. Approximate quantity of excisable goods likely to be removed between 11 A.M. and 12 midnight on the Budget Day : 8. Declarations I/We hereby declare that the above particulars are true and correctly stated. I/We hereby undertake to pay duty on the goods cleared by me/us after 11 A.M. on the Budget Day, at the enhanced rate, effective from the day following the day of the presentation of the Budget. I/We hereby undertake to pay overtime / supervisory charges at usual rates for clearances between 6 P.M. and 12 midnight on Budget Day. Place : Signature of the Assessee Date : or his Authorised Agent To, The Commissioner of Central Excise, …………………………………………. Copy to : The Deputy/Assistant Commissioner of Central Excise,…………….,Division. The Superintendent of Central Excise,……………………………………… Central Excise Officer-in-charge of …………………………………………