Central Excise (4th Amendment) Rules, 1995 - 11/95 - Central Excise - Non Tariff

Central Excise (4th Amendment) Rules, 1995 Notification No. 11/95-C.E. (N.T.) Dated 16-3-1995 In exercise of the powers conferred by section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), (hereinafter referred to as the said Act) the Central Government hereby makes the following rules further to amend the Central Excise Rules, 1944, (hereinafter referred to as the said rules), namely :- 1. (i) These rules may be called the Central Excise (Fourth Amendment) Rules, 1995 . (ii) They shall come into force on the date of their publication in the Official Gazette, except that the rules 15 and 16 shall come into force on the 1st day of May, 1995. 2. In the said rules, in rule 57A, for the Explanation, the following Explanation shall be substituted, namely :- `Explanation. - For the purposes of this rule, "inputs" includes - (a) inputs which are manufactured and used within the factory of production, in or in relation to, the manufacture of final products, (b) paints and packaging materials, (c) inputs used as fuel, and (d) inputs used for generation of electricity, used within the factory of production for manufacture of final products or for any other purpose, but does not include - (i) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of final products; (ii) packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value of the packaging materials is being availed of for packaging any final products; (iii) packaging materials or containers, the cost of which is not included in the assessable value of the final products under section 4 of the Act.'. 3. In the said rules, in rule 57C, after the words "Free Trade Zone or to a hundred per cent Export-Oriented Unit" the words "or to a unit in an Electronic Hardware Technology Park or to a unit in Software Technology Parks" shall be inserted. 4. In the said rules, in Rule 57D, for the proviso, the following provisos shall be substituted, namely :- "Provided that such intermediate products are - (a) used within the factory of production in the manufacture of a final product (other than those cleared either to a unit in a Free Trade Zone, or to a hundred per cent Export-Oriented Unit or to a unit in an Electronic Hardware Technology Park or to a unit in Software Technology Parks) on which the duty of excise is leviable whether in whole or in part; and (b) specified as inputs or as final products under a notification issued under rule 57A : Provided further that the credit of specified duty shall be allowed in respect of inputs which are used for generation of electricity, used within the factory of production for manufacture of final products or for any other purpose.". 5. In the said rules, in rule 57F, - (i) in sub-rule (3), for clause (a), the following clause shall be substituted, namely :- "(a) for the purposes of test, repairs, refining, reconditioning or carrying out any other operation necessary for the manufacture of the final products and return the same to his factory for further use in the manufacture of the final product or remove the same without payment of duty under bond for export or after payment of duty for home consumption, provided that the waste, if any, arising in the course of such operation is also returned to the said factory;"; (ii) in sub-rule 4 :- (a) in the third proviso, after the words "Export-Oriented Unit" the words "or to a unit in an Electronic Hardware Technology Park or to a unit in Software Technology Parks" shall be inserted; (b) after third proviso, the following proviso shall be added, namely :- "Provided also that, notwithstanding anything contained in sub-rule (1) of rule 57A and the notifications issued thereunder the credit of specified duty allowed in respect of any inputs may be utilised towards payment of duty of excise on any other final product, whether or not such inputs have actually been used in the manufacture of such other final product, if the said inputs have been received and used in the factory of production on or after the 16th day of March, 1995.", (iii) after sub-rule (4), the following sub-rule shall be inserted, namely :- "(4A) Notwithstanding anything contained in sub-rule (4), or sub-rule (1) of rule 57A and the notifications issued thereunder, any credit of specified duty lying unutilised on the 16th day of March, 1995, with a manufacturer of tractors, falling under heading No. 87.01 or motor vehicles falling under heading Nos. 87.02 and 87.04 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) shall lapse and shall not be allowed to be utilised for payment of duty on any excisable goods, whether cleared for home consumption or for export : Provided that nothing contained in this sub-rule shall apply to credit of duty, if any, in respect of inputs lying in stock or contained in finished products lying in stock on the 16th day of March, 1995.". 6. In the said rules, in rule 57G, for sub-rule (4), the following sub-rule shall be substituted, namely :- `(4) A manufacturer of the final products shall submit, within five days after the close of each month, to the Superintendent of Central Excise the original documents evidencing the payment of duty along with extracts of Parts I and II of Form R.G. 23A, every month and the Superintendent of Central Excise shall, after verifying their genuineness, deface such documents and return the same to the manufacturer : Provided that the Collector may, having regard to the nature, variety and extent of production or manufacture or frequency of removals - (i) fix in relation to any assessee or class of assessees a period shorter than one month for filing the aforesaid return ; (ii) permit that the aforesaid return may be filed by the assessee within a period not exceeding twenty one days after the close of each month : Provided further that in respect of a manufacturer availing of any exemption based upon the value or quantity of clearances in a financial year, the provisions of this sub-rule shall have effect in that financial year as if for the expression "month" the expression "quarter" were substituted.'. 7. In the said rules, in rule 57H, - (i) 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, under any invoice or any document as may be prescribed by the Central Board of Excise and Customs, immediately before or after obtaining the dated acknowledgement of the declaration made under the said rule if he is satisfied that - (a) such inputs are lying in stock, or are received in the factory, on or after the 16th day of March, 1995, or (b) such inputs are used in the manufacture or packing of final products which are cleared from the factory on or after the 16th day of March, 1995, and that no credit has been taken by the manufacturer in respect of such inputs under any other rule or notification : Provided that no credit under this sub-rule shall be allowed in respect of inputs received or declaration made under rule 57G, on or after the 15th day of April, 1995 : Provided further 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"; (ii) after sub-rule (4), the following sub-rule shall be added, namely :- "(5) Where a manufacturer who opts for exemption from the whole of the duty of excise leviable on goods manufactured by him under a notification based on the value or quantity of clearances in a financial year, and who has been availing of the credit of the duty paid on inputs before such option is exercised, he shall be required to pay an amount equivalent to the credit, if any, allowed to him in respect of inputs lying in stock or used in any finished excisable goods lying in stock on the date when such option is exercised and after deducting the said amount from the balance, if any, lying in his credit, the balance if any, still remains shall lapse and shall not be allowed to be utilised for payment of duty on any excisable goods, whether cleared for home consumption or for export.". 8. In the said rules, in rule 57-I in sub-rule (1), for the words "within six months from the date of such credit", the words, brackets, figures and letter "within six months from the date of filing the return required to be submitted in terms of sub-rule (4) of rule 57G, and where no such return as aforesaid is filed, within six months from the last date on which such return is to be filed under the said rules" shall be substituted. 9. In the said rules, in rule 57-O, for sub-rule (4), the following sub-rule shall be substituted, namely :- `(4) A manufacturer of the final products shall submit, within five days after the close of each month, to the Superintendent of Central Excise a monthly return indicating the particulars of the inputs used during the month and the amount of credit taken, alongwith extracts of Parts I and II of Form R.G. 23B : Provided that the Collector may, having regard to the nature, variety and extent of production or manufacture or frequency of removals - (i) fix in relation to any assessee or class of assessees a period shorter than one month for filing the aforesaid return; (ii) permit that the aforesaid return may be filed by the assessee within a period not exceeding twenty one days after the close of each month : Provided further that in respect of a manufacturer availing of any exemption based upon the value or quantity of clearances in a financial year, the provisions of this sub-rule shall have effect in that financial year as if for the expression "month" the expression "quarter" were substituted.'. 10. In the said rules, in rule 57Q, - (i) in sub-rule (1), - (a) in proviso, in clause (b), after the words "Electronic Hardware Technology Park", the words "or by a unit in Software Technology Parks" shall be inserted; (b) in the Explanation, in clause (1), after sub-clause (c) and the entries relating thereto, the following sub-clauses shall be inserted, namely :- "(d) following goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and used in the factory of the manufacturer - (i) all goods falling under heading Nos. 84.02, 84.05, 84.06, 84.11, 84.12, 84.16, 84.17, 84.19, 84.21, 84.23, 84.25 to 84.28, 84.80, 85.05, 85.35, 90.11, 90.12, 90.13, 90.16, 90.17 and 90.24 to 90.31; (ii) auxiliary plants falling under heading No. 84.04 for use with boilers of heading No. 84.02; (iii) I.C. engines (other than engines of motor vehicle) falling under heading No. 84.07 or 84.08; (iv) compressors (other than of a kind used for refrigerating and airconditioning applications) falling under heading No. 84.14; (v) electric generating sets (of output exceeding 75 KVA) falling under heading No. 85.02; (vi) transformers (of power handling capacity exceeding 75 KVA) falling under heading No. 85.04; (vii) goods (other than for medical use) of heading No. 90.22; (viii) goods (other than of a kind used for refrigerating and airconditioning applications) falling under heading Nos. 84.81 and 90.32; (ix) components, spares and accessories of the goods specified against item (i) to (viii) above; (x) refractories falling within Chapter 69; (e) goods specified in the Table in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 68/89-Customs, dated the 1st March, 1989, and used in the factory of manufacturer.". (ii) for sub-rule (2), the following sub-rule shall be substituted, namely :- "(2) Notwithstanding anything contained in sub-rule (1), no credit of the specified duty paid on capital goods (other than those capital goods in respect of which credit of duty was allowable under any other rule or notification prior to the 16th day of March, 1995) shall be allowed if such capital goods were received in the factory before the 16th day of March, 1995."; (iii) for the Annexure, the following Annexure shall be substituted, namely :- "ANNEXURE All goods specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the following, namely :- (i) all goods falling under Chapter 24; (ii) all goods falling under heading Nos. 36.05 or 37.06; (iii) all woven fabrics falling under chapters 52 or 54 or 55.". 11. In the said rules, in rule 57R, - (i) in sub-rule (1), after the words "Electronic Hardware Technology Park", the words "or to a unit in Software Technology Parks" shall be inserted; (ii) in sub-rule (2), after the proviso, the following proviso shall be inserted, namely :- "Provided further that credit of specified duty shall be allowed in respect of capital goods used for generation of electricity, used within the factory of production for manufacture of final products or for any other purpose.". 12. In the said rules, in rule 57S, in sub-rule (2), in clause (i), the words, figures, brackets and letter "in accordance with declaration filed under sub-rule (1) of rule 57T" shall be omitted. 13. In the said rules, in rule 57T, for sub-rule (6), the following sub-rule shall be substituted, namely :- `(6) A manufacturer of the final products shall submit, within five days after the close of each month, to the Superintendent of Central Excise the original documents evidencing the payment of duty along with extracts of Parts I and II of form R.G. 23C, every month and the Superintendent of Central Excise shall, after verifying their genuineness, deface such documents and return the same to the manufacturer : Provided that the Collector may, having regard to the nature, variety and extent of production or manufacture or frequency of removals - (i) fix in relation to any assessee or class of assessees a period shorter than one month for filing the aforesaid return; (ii) permit that the aforesaid return may be filed by the assessee within a period not exceeding twenty one days after the close of each month : Provided further that in respect of a manufacturer availing of any exemption based upon the value or quantity of clearances in a financial year, the provisions of this sub-rule shall have effect in that financial year as if for the expression "month" the expression "quarter" were substituted.'. 14. In the said rules, in rule 57U, in sub-rule (1), for the words "within six months from the date of such credit" the words, brackets, figures and letter "within six months from the date of filing the return required to be submitted in terms of sub-rule (6) of rule 57T, and where no such return as aforesaid is filed, within six months from the last date on which such return is to be filed under the said rules" shall be substituted. 15. In the said rules, for rule 173B, the following rule shall be substituted, namely : - "Rule 173B. Assessee to file declaration of goods produced or manufactured in the factory. - (1) Every assessee, shall file with the Superintendent of Central Excise, having jurisdiction over the factory, a declaration (in quadruplicate) showing, - (a) the full description of - (i) all excisable goods produced or manufactured by him, (ii) all other goods produced or manufactured by him and intended to be removed from his factory, and (iii) all the excisable goods already deposited or likely to be deposited from time to time without payment of duty in his warehouse; (b) the Chapter, heading No. and sub-heading No., if any, of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) under which each goods fall; (c) the rate of duty leviable on each such goods; (d) the exemption notification availed or proposed to be availed, if any; and (e) such other particulars as the Collector may direct, and obtain a dated acknowledgement of the said declaration : Provided that such declaration shall be filed on or before the 15th May, 1995 or such extended period as the Assistant Collector of Central Excise may permit : Provided further that an assessee producing or manufacturing excisable goods for the first time shall be required to submit the said declaration within thirty days of commencing the production of such excisable goods. (2) If in the declaration so filed under sub-rule (1), any alteration becomes necessary in respect of any goods because of - (a) the assessee commencing production, manufacture or warehousing of goods not mentioned in that declaration, or (b) the assessee intending to remove from his factory any non-excisable goods not mentioned in that declaration, or (c) a change in the rate or rates of duty in respect of the goods mentioned in that declaration or, by reason of any amendment to the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), a change in the Chapter, heading No. or sub-heading No., the assessee shall likewise file a fresh declaration or an amendment of the declaration already filed within thirty days of any alteration mentioned above, in the same manner as is provided in sub-rule (1).". 16. In the said rules, rule 173CC shall be omitted. 17. In the said rules, in rule 173F, the word, figures and letters "or 173CC" shall be omitted. 18. In the said rules, in rule 173G, - (i) in sub-rule (2A), the following proviso shall be added, namely :- "Provided that an assessee availing of the exemption under a notification based on the value or quantity of clearances in a financial year, shall file with the proper officer the triplicate copies of the invoices or like documents issued during a quarter, on or before the fifth day of the following quarter along with a covering list showing the said number of such invoices as well as opening balance, credit, debit and closing balance in his account current and in his account maintained in Form RG 23A, Part II and Form RG 23C Part II"; (ii) after sub-rule (7), the following sub-rule shall be added, namely :- `(8) In respect of a manufacturer availing of the exemption under a notification based on the value or quantity of clearances in a financial year, the provisions of this rule shall have effect in that financial year as if for the word "month", wherever it occurs, the word "quarter", and for the word "monthly", wherever it occurs, the word "quarterly" were substituted.'.