TMI BlogCentral Excise (Second Amendment) Rules, 2000X X X X Extracts X X X X X X X X Extracts X X X X ..... ds lying in stock as on the 1st of March, 2000, and after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining 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. Explanation .- For the purposes of this sub-rule, "independent texturiser" shall mean a manufacturer engaged in the manufacture of texturised yarn of polyesters falling under sub-heading No. 5402.32, and who does not have the facility in his factory (including plant and machinery) for manufacture of partially oriented yarn of polyesters falling under sub-heading No. 5402.42.' 4. In rule 57Q of the said rules, - i. in sub-rule (1), for the Table, the following Table shall be substituted, namely:-" Table S.No. Description of capital goods falling within the First Schedule to the Central Excise Tariff Act, 1985 and used in the factory of the manufacturer. Description of final products (1) (2) (3) 1 1. All goods falling under Chapter 82, Chapter 84, Chapter 85 and Chapter 90; 2. Components, spares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct or not, and whether used as packing material, or as fuel, or for generation of electricity or steam, except high speed diesel oil and motor spirit, commonly known as petrol. Explanation .- The high speed diesel oil or motor spirit commonly known as petrol will not be deemed to be input for any purpose whatsoever. 57B. CENVAT credit. - A manufacturer or producer of finished excisable goods shall be allowed to take credit of duty of excise (hereinafter referred to as the CENVAT credit) of ,- a. the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985, leviable under the Central Excise Act, 1944; b. the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985, leviable under the Central Excise Act, 1944; c. the additional duty under section 3 of the Customs Tariff Act, 1975, equivalent to the duty of excise specified under clauses (a) and (b) above, paid on any inputs or capital goods received and used in the factory. The CENVAT credit may be utilized for payment of duty of excise levied under the First Schedule on any final products manufactured by the manufacturer. Explanation . - Where the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s meant for use in the manufacture of exempted goods and take CENVAT credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods. The manufacturer, opting not to maintain separate accounts shall follow either of the following conditions, as applicable to him, namely:- a. if the exempted goods are,- i. final products falling under Chapters 50 to 63 of the Schedule to the Central Excise Tariff Act, 1985; ii. tyres of a kind used on animal drawn vehicles or handcarts and their tubes, falling within Chapter 40; iii. black and white television sets, falling within Chapter 85; iv. newsprint, in rolls or sheets, falling within Chapter heading No.48.01, the manufacturer shall debit an amount equivalent to the CENVAT credit attributable to inputs contained in such final products at the time of their clearance from the factory, or b. if the exempted goods are other than those described in clause (a) above, the manufacturer shall debit an amount equal to eight per cent of the total price, excluding sales tax and other taxes, if any, paid on such goods, of the exempted final product charged by the manufacturer for the sale of such goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by or on behalf of the said manufacturer, under cover of an invoice. b. An importer or from the depot of an importer or from the premises of the consignment agent of the importer, under cover of an invoice. i. "second stage dealer" means a dealer who purchases the goods from a first stage dealer. 2. The CENVAT credit in respect of inputs or capital goods purchased from a first stage dealer or second stage dealer shall be allowed only if the first stage dealer or second stage dealer, as the case may be, has maintained records indicating the fact that the inputs or capital goods were supplied from the stock on which duty was paid by the producer of such inputs or capital goods and only an amount of such duty on pro rata basis has been indicated in the invoice issued by him. 57G. Transfer of credit.- 1. If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of liabilities of the such factory, then, the manufacturer shall be allowed to transfer the CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Rules, 1944. (3) Fifty per cent. of the amount of duty payable for a calendar month under sub-rule (1) shall be paid by the 15th of the month and the remaining amount shall be paid by the end of that month. (4) The independent processor shall continue to maintain records, and file returns, pertaining to production, clearance, manufacturing, storage, delivery or disposal of goods, including the materials received for or consumed in, the manufacture of excisable goods or other goods, the goods and materials in stock with him and the duty paid by him, as prescribed under the Central Excise Rules, 1944 and the notifications issued thereunder. (5) If an independent processor fails to pay the amount of duty or any part thereof by the date specified in sub-rule (3), he shall be liable to, - i. pay the outstanding amount of duty along with interest at the rate of twenty-four per cent. per annum calculated for the outstanding period on the outstanding amount; and ii. a penalty equal to an amount of duty outstanding from him at the end of such month or rupees five thousand, whichever is greater. 6. If an independent processor removes the processed textile fabrics referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n advance; h. If the claim for abatement by the independent processor has been disallowed by the Commissioner of Central Excise, by a written order made in this regard, the independent processor shall pay the duty, and interest if any applicable, prior to getting the stenter or stenters sealed under condition (c) reopened for resuming production; Provided that the Commissioner of Central Excise, where he is satisfied that the delay in giving information under condition (b) was caused due to unavoidable circumstances, may, for reasons to be recorded in writing, condone such delay. Explanation .- For the purposes of these rules, an "independent processor" means a manufacturer who is engaged primarily in the processing of fabrics with the aid of power and who also has the facility in his factory (including plant and equipment) for carrying out heat-setting or drying, with the aid of power or steam in a hot-air stenter and who has no proprietory interest in any factory primarily and substantially engaged in the spinning of yarn or weaving or knitting of fabrics, on or after the 10th December, 1998." 7. In rule 173G of the said rules,- i. for sub-rule (1), the following sub-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer shall be required to pay excise duty for each consignment by debit to the account current referred to in clause (b) and in the event of any such failure it will be deemed as if such goods have been cleared without payment of duty and the consequences and penalties as provided in the Central Excise Rules shall follow." ; iii. for sub-rule (5), the following sub-rule shall be substituted, namely: - "(5)(a) Every assessee shall furnish to the proper officer, a list in duplicate, of all the records prepared or maintained by him for accounting of transactions in regard to receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods. Explanation.- For the purposes of this rule, - i. the expression 'records' shall include account, agreement, invoice, price-list, return, statement or any other source document ,whether in writing or in any other form; ii. the expression 'source documents' means all documents which form the basis of accounting of transactions and include sales invoice, purchase invoice, journal voucher, delivery challan and debit or credit note. b. Where an assessee maintains or generates such records by using ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee. e. All records submitted to audit party in electronic format shall be used only for verification of payment of duties of excise or for verification of compliance of the provisions of the Central Excise Act, 1944 or the rules made thereunder and shall not be used for any other purpose without the written consent of the assessee."; i. for sub-rule (9), the following sub-rule shall be substituted, namely:- "(9) Every assessee shall preserve the records including books of accounts and source documents and data in any electronic media, where any document is generated on computer, for five financial years immediately after the financial year to which the records pertain.". 8. In rule 173GG of the said rules, in sub-rule (3) ,for the words "thirty per cent." the words "twenty four per cent." shall be substituted. 9. Rule 173GG of the said rules shall be omitted on and from 1st April, 2000. (F. No. 334/1 /2000-TRU) Footnote.- The principal rules were published vide notification number IV D-C.E., dated the 28th February, 1944 and were last amended vide G.S.R. 91(E), dated the 10th February,1999, G.S.R. 353(E), dated the 18th May, 1999. - Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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