TMI BlogASSESSMENT, CLASSIFICATION, VALUATION, PROVISIONAL ASSESSMENT, MANNER OF DUTY PAYMENT, ACCOUNT CURRENT, SCRUTINYX X X X Extracts X X X X X X X X Extracts X X X X ..... excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided. 1.3 Omitted 24/2003 (N.T.) 1.3 There is an exception with respect to duty payment on molasses. Where molasses are produced in a khandsari sugar factory, the person who procures such molasses, whether directly from such factory or otherwise, for use in the manufacture of any commodity, whether or not excisable, shall pay the duty leviable on such molasses, in the same manner as if such molasses have been produced by the procurer. 1.4 Notwithstanding anything contained in sub-rule (1) of Rule 4, Commissioner may in exceptional circumstances having regard to the nature of goods and shortage of space at the premises of the manufacturer where the goods are made, permit a manufacturer to store his goods in any other place outside such premises, without payment of duty subject to such conditions as he may specify. 1.5 For the purposes of the said rule 4, excisable goods manufactured in a factory and utilized, as such or after subjecting to any process, for the manufacture of any other commod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antity of goods are also required in cases where duty is charged at specific rate. 3. Self Assessment (Rule 6) 3.1 As per rule 6 of the said Rules, a Central Excise assessee is himself (self-assessment) required to determine duty liability at the time of removal of excisable goods and discharge the same. In other words, the assessee should apply correct classification and value (where duty is ad valorem) on the quantities being removed by him and indicate the same in the invoice (except assessee manufacturing cigarettes, in which case the Superintendent or Inspector of Central Excise has to assess the duty payable before removal by the assessee). 3.2 Assessee is also required to check the return (in the prescribed format under form E.R.-1 and form E.R.-2) for the month for production and removal of goods and other relevant particulars including CENVAT credit for a month and submits to the Range Office having jurisdiction over his factory within ten days of the succeeding month. 3.3 The following persons are permitted to file their returns on quarterly basis. Manufacturers (a) availing exemption notification based on value of clearances in a financial year, or (b) Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iple is made when the trade meaning or commercial nomenclature does not fit into the scheme of the statute. 2. Interpretative Rules for classification. 2.1 The Central Excise Tariff Act, 1985 incorporates five Rules of interpretation, which together provide necessary guidelines for classification of various products under the schedule. As regards the Interpretative Rules the classification is to be first tested in the light of Rule 1. Only when it is not possible to resolve the issue by applying this Rule, recourse is taken to Rules 2,3 4 in seriatim. The provision of the individual Rule is as follows: 'Rule I declares that Section Chapter titles are for ease of reference only For legal purposes, the classification of goods are to be determined according to the terms of the headings and relevant Section or chapter Notes. Assistance from subsequent provisions of the Interpretative Rule are to be sought only if the Section or Chapter notes do not otherwise require. Rule 2(a):- This rule provides for classification of an article referred to heading, even if that article is incomplete or unfinished, or is presented in an unassembled or disassembled form. An importan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then they are to be classified in a heading of a product, which is most akin to the goods in question. Kinship can, of course, depend on many factors such as description, character, purpose etc. Rule 5:- This rule postulates that the classification of any product under a sub-heading is to be contemplated after the product concerned has been properly classified under its proper four digits Chapter heading. The classification in the sub-heading of a heading is determined mutatis mutandis in accordance with the principles applicable to classification in the four digit headings. 3. Powers of the C.B.E.C. to issue orders of classification of goods. 3.1 Section 37B of the Central Excise Act, 1944 empowers the Central Board of Excise Customs to issue orders, instructions and directions, for the purpose of uniformity in the classification of goods or with respect to the levy of excise duties on such goods. PART III VALUATION 1 Value under the Central Excise Act, 1944 1.1 Value of the excisable goods has to be necessarily determined when the rate of duty is on ad-valorem basis. Accordingly, under the Central Excise Act, 1944 the following values are relevant for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the buyer to or on behalf of the assessee, on account of the factum of sale of goods. in other words, if, for example, an assessee recovers advertising charges or publicity charges from his buyers, either at the time of sale of goods or even subsequently, the assessee cannot claim that such charges are not to be included in the transaction value. The law recognizes such payment to be part o( the transaction value, that is assessable value for those particular transactions. (1) As per the new Sec.4, transaction value shall include the following receipts/recoveries or charges, incurred or provided for in connection with the manufacturing, marketing, selling of the excisable goods: (a) Advertising or publicity; (b) Marketing and selling organization expenses; (c) Storage; (d) Outward handling; (e) Servicing, warranty; (f) Commission or (g) Any other matter. The above list is not exhaustive and whatever elements which enrich the value of the goods before their marketing and were held by Hon'ble Supreme Court to be includible in "value" under the erstwhile section 4 would continue to form part of section 4 value even under new section 4 definition. (2) Thus if in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty is optional or mandatory. (iii) Interest for delayed payments is a normal practice in industry. Interest under a financing arrangement entered between the assessee and the buyer relating to the purchase of excisable goods shall not be regarded as part of the assessable value provided that: (a) the interest charges are clearly distinguished from the price actually paid or payable for the goods; (b) the financing arrangement is made in writing; and (c) where required, assessee demonstrates that such goods are actually sold at the price declared as the price actually paid or payable. (iv) Discount of any type or description given on any normal price payable for any transaction will not form part of the transaction value for the goods, e.g. quantity discount for goods purchased or cash discount for the prompt payment etc. will therefore not form part of the transaction value. However, it is important to establish that the discount has actually been passed on to the buyer of the goods. The differential discounts extended as per commercial considerations on different transactions to unrelated buyers if extended is also permissible and different actual prices paid or payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration" should flow directly or indirectly from the buyer to the seller Therefore interest earned, on deferred sales tax by the manufacturer is not a benefit extended by the buyer to the seller but is an incentive, accruing in pursuance of State Government policy and hence cannot be treated as "additional consideration" under the Central Excise Valuation Rules. (Circular No 679/70 /2002-CX 4th December, 2002) The total amount received by a manufacturer will be deemed to be the price-cum-duty and the assessable value should be determined accordingly subject to exclusion of sales tax or other taxes. Similar will be the position when additional considerations are received. (Finance Act, 2003) (vi) Erection, installation and commissioning charges: If the final product is not excisable, the question of including these charges in the assessable value of the product does not arise. As for example, since a Steel Plant, as a whole, is an immovable property and therefore not excisable, no duty would be payable on the cost of erection, installation and commissioning of the steel plant. Similarly, if a machine is cleared from a factory on payment of appropriate duty and later on tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of Rule 5 shall apply. In such cases, the assessable value shall be the "transaction value" without the addition of the cost of transportation from the place of removal (factory/ warehouse/depot etc.) upto the place of delivery. For the period prior to 1.3.2003, exclusion of cost of transportation is allowed only for the actual cost of transportation and only if the assessee has shown the same separately in the invoice. After 1.3.2003, 'cost of transportation' includes - 1. the actual cost of transportation; and 2. Where freight is averaged, the cost of transportation calculated in accordance with generally accepted principles of costing. Thus, 'cost of transportation' can be excluded even where freight is averaged and also there is no condition that the 'cost of transportation' should be shown separately in the invoice. However exclusion of the cost of transportation from the factory to the place of removal, where the factory is not the place of removal, shall not be permissible. The cost of transportation will include the cost of insurance also during the transportation of the goods. (ii) If the goods are not sold at the factory gate or at the warehouse but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free or at reduced cost by or on behalf of the buyer to the assessee. The 'goods and services' whose value is to be added to the value includes materials including packing materials, components, moulds, tools, dies, Drawings, engineering, development, art work, plans and sketches etc. However, where an assessee receives any advance payment from the buyer against delivery of any excisable goods, no notional interest on such advances will be added to value unless it is evidenced that the advance has influenced the fixation of sale price by way of charging a lesser price from or offering a special discount to the buyer who has made the advance deposit. An Explanation has been added in the rule from 1.3.2003 only to remove any doubts with respect to its scope. Advertisement and publicity charges borne by the dealers/buyers are to be included in the assessable value. Even where the dealings are on principal to principal basis but there is an agreement either written or oral that the buyer will incur certain expenditure for advertising the goods of the assessee, the cost of such advertisement and publicity will be added to the price of the goods to determine the assessable value. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive consumption The cost of production of captively consumed goods will be done strictly in accordance with CAS- 4. Copies of CAS-4 may be obtained from the local Chapter of ICWAI. (Auth: Circular No. 692/08/2003-CX.dated 13.2.2003). Where goods are transferred to a sister unit or another unit of the same company valuation will be done as per the proviso to rule 9. Valuation of Samples : Since the goods are not sold section 4(l) (a) will not apply and recourse will have to be taken to the Valuation. Rules. No specific rule covers such a contingency. Except rule 8 all the other rules cover contingencies where sale is involved in some form or the other. Therefore, the residuary rule 11 will have to be adopted along with the spirit of rule 8. In other words, the assessable value would be 110% of the 'cost of production or manufacture' of the goods. (v)Where goods are sold through related persons, the transaction value is not applicable and the assessable value shall be the value at which the related person sells the goods (Rule 9). If the related person does not sell the goods but uses them in manufacture of other articles, the value shall be 110% of the cost of production. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trolled by the same person of the same group; (vii) If one is connected with the other either directly or through any number of undertakings which are inter-connected undertakings within the meaning of one or more of the forgoing sub-clauses. <?xml:namespace prefix = st2 ns = "urn:schemas:contacts" /> Explanation I. - For the purpose of this Act, two bodies corporate shall be deemed to be under the same management, - (i) if one such body corporate exercises control over the other or both are under the control of the same group or any of the constituents of the same group; or (ii) if the managing director or manger of one such body corporate is there managing director or manager of the other; or (iii) if one such body corporate holds not less than one-third of the equity shares in the other or controls the composition of not less than one-third of the total membership of the board of directors of the other; or (iv) if one or more directors or one such body corporate constitute, or at any time within a period of six months immediately preceding the day when the question arises as to whether such bodies corporate are under the same management constituted, wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the shares held by financial institutions in such bodies corporate shall not be taken into account. Illustration Undertaking B is inter-connected with undertaking A and undertaking C is inter-connected with undertaking B. Undertaking C is inter-connected with undertaking A; if undertaking D is inter-connected with undertaking C., undertaking D will be inter-connected with undertaking B and consequently with undertaking A; and so on. ** As per Companies Act, 1956 (Extracts [ No. 1 of 19561 the Meaning of "relative".- A person shall be deemed to be a relative of other if, and only if, - (a) They are members of a Hindu Undivided family; or (b) They are husband and wife; or (c) The one is related to the other in the manner as indicated in the following list. List of Relatives 1. Father 2.Mother (including step- mother) 3. Sons (including step—son 4.Son's wife 5. Daughter (including step-daughter) 6.Father's father 7. Father's mother 8.Mother's mother 9. Mother's father 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orker will not be sufficient ground to contend that the dealings between the two are not at arms length. Goods manufactured on job-work were earlier assessed under the residuary Rule 7 of the erstwhile valuation k of 1975 read with rule 6(b) read with the Apex Court decisions referred to above. Under the new valuation provisions, introduced with effect from 1.7.2000, there is no departure from the principles laid down by the Apex court in the above two decisions, in respect of goods manufactured on job-work bas In other words goods manufactured on job-work basis after 1.7.2000 will continue valued in the same manner as they were being valued before 1.7.2000. Since the buyer (raw-material supplier) supplies some items free o cost, price is not the sole consideration for the transaction between the copyright owner and the job-worker. Therefore, after 1.7.2000, in respect of goods manufactured on job-work basis, valuation would be governed by Rule 11 of the new valuation Rules of 2000 read with rule 6 read with the above two decisions of the Apex Court. As for example, problems have been reported in the case of record CD (Compact Disc) manufactured on job-work basis. The prac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if this has been incurred by the copyright owner). In such cases the most reasonable method would be to ascertain the royalty amount and studio hire charges contained in the wholesale price of the CDs at which the copy right owner sells, to its dealers, at arms length. This could be done by determining the royalty amount plus the studio hire charges as a percentage of the net sale value (gross sale minus central excise duty element) of the Music Company or copyright owner in respect of the recorded media. In case the company also sells audio cassettes of the same music, there would be no need to break up the sale value for CD's and cassettes separately for determining The percentage since the royalty amount would cover rights for both. The figures of net sales and royalty payments are normally available in the balance sheets of these companies. This percentage will be used to determine the element of royalty cost attributable to each CD. Duty will have to be paid by the job-worker on the royalty amount also. As an illustration, if the ratio of the royalty amount plus studio hire charges, to net sales of a music company is, say, 9.41% and the whole sale price of a recorded CD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e" which is generally burnt into the hardware itself. The "basic software" enables a computer to read into itself from peripheral devices and includes vocabulary of basic instructions such as add, subtract, increment, document, etc. So far as the period prior to 1.7.2000 is concerned, the Supreme Court has clearly held, in the case of PSI Data System Ltd. v. CCE [ (89) E.L.T. 3 (S.C.)] that the value of computers under heading 84.71 of the Central Excise Tariff, will not include the value of the software supplied, in the form of floppies, discs, tapes, along with the computer. The question whether the software etched on the hard disc of the computer would form a part of the assessable 'value of the Computer or not, was not decided by the Apex Court in this case since this aspect had already been 'accepted by the appellants i.e. PSI Data Systems Ltd. (reference paras 2 11 of the. judgment). However, by implication it can be said that the Supreme Court approved the inclusion of the etched software in the value of the computer system (the Head Notes of this judgment brought out in the above citation does not bring out the gist of the judgment correctly as the Head Notes make an as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t- off notifications where one-to-one relationship is to be established between the finished product and the raw materials and the assessee is allowed to charge only the net central excise duty from the buyer in the invoice. The difference between the set-off operating in respect of central excise duty and that for sales tax can be best illustrated through an example. If the sales tax on a product 'A' of value Rs.100/- is, say, 5% and the set off available in respect of the purchase tax/sales tax paid on inputs going into the manufacture of the product is, say, Rs.1 /-, then the sales tax law permits the assessee to recover sales tax of Rs.5/-. But, while paying to the sales tax department he deposits an amount of Rs.5-1= Rs 4 only. On the central excise side, under similar circumstances, the central excise duty payable would have been Rs.5-1 =Rs 4, in view of the set-off notification, and the assessee would recover an amount of Rs 4 only from the buyer as Central excise duty. Thus, it is seen that the set-off scheme in respect of sales tax operates in these cases somewhat like the CENVAT scheme which does not have the effect of changing the rate of duty payable on the finished pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which are cleared, sold, distributed etc. in packed condition. in terms of Rule 1 (1) of the Standards of Weights Measures (Package Commodity) Rules, 1977, a 'pre-packaged commodity' means a commodity, which, without the purchaser being present, is placed in a package so that the quantity of goods contained therein, has a pre-determined value and such value cannot be altered without opening the package. Further, in terms of the said Rules, the term 'package' is to be construed as package containing such pre-packed commodity. Therefore, only when such pre-packed commodities are sold in retail packages, the provisions of Standards of Weights Measures Act and rules regarding declaration of the retail sale price (and consequently valuation of the goods based on such RSP) arises. Many a time's garments are cleared in bulk where the manufacturer neither packs the same nor declares the retail sale price therein. Such garments are ultimately displayed in the retailer's outlets, which may or may not attach a price tag thereto. Some times the dealer/retailer packs, re-packs, labels or re-labels the goods, which may result in such goods fall within the purview of Standards of Weights an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f manufacture, is altered to increase the retail sale price, such altered retail sale price shall be deemed to be the retail sale price, Where different retail sale prices are declared on different packages for the sale of any excisable goods in packaged form in different areas, each such retail sale price shall be the retail sale price for the purposes of valuation of the excisable goods intended to be sold in the area to which the retail sale price relates. 6.2 Certain Clarifications regarding Section 4A of the Central Excise Act. (a) In respect of commodities notified under Section 4A of the Central Excise Act, 1944 goods are sold only against refundable deposits or against: deposit of an empty bottle, container or jar. As for example in the case of sale of soft drinks the soft drink bottle is being sold at the printed MRP only if the buyer leaves some cash deposit for safe return of the bottle or he deposits before hand an empty bottle of the particular brand. Similar cases have been reported in respect of sale of mineral water. In such instances, it can be said that the MRP is not the sole consideration for sale and, therefore, the cash value of the additional c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on it, the MRP printed on the multi-pack will be taken for purposes of valuation under section 4A. "Multi-piece package" has been defined in Rule 2(j) of "The Standards of Weights and Measures (Packaged Commodities) Rules, 1977". Rule 17 of the said Rules mentions the additional declaration required to be made on multi-piece packages. Circular No 673/64/2002-CX . 28th Oct. 2002 (d) There are instances where commodities not under Sec.4A are partly sold with the retail price printed on the packages and partly sold without printing the retail prices on the other packages. Some of the situations, where MRP cannot be printed on the notified item, are mentioned below: 1. Bulk Supplies for personal as well as industrial use 2. Supplies in bulk against contracts to DGS D, Govt. Departments., restaurants/hotels etc 3. Supplies to canteen stores depots (CSD) of the defense services 4. Items supplied free with another consumer items as marketing strategy. Example, one soap free with one box of Detergent. 5.Items supplied free as marketing strategy or for gauging the market response. Example physician samples, bubble gums etc. 6. Items meant for export, etc. Sec.4A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mined by the board earlier vide letter F. No. 341/64/97-TRU dt.11.8.97. This clarification was issued in the context of certain assessees printing MRP on packages even where there was no statutory requirement to do so under the Standards of Weights Measures Act, 1976. It was clarified that in such cases duty will be charged u/s.4 of C.E. Act, 1944 and not u/s.4A (the clarification dt.11.8.97 did not, however, specifically mention whether the disputed goods were notified u/s.4A or not and whether it covered only non-notified goods). In respect of all goods (whether notified u/s.4A or not) which are not statutorily required to print/declare the retail sale price on the packages under the provisions of the Standards of Weight Measures Act, 1976, or the rules made there under or any other law for the time being in force, valuation will be done u/s.4 of the C.E. Act, 1944 (or under section 3(2) of the Central Excise Act,1944, if tariff values have been fixed for the commodity). Thus, there could be instances where the same notified commodity would be partly assessed on the basis of MRP u/s.4A and partly on the basis of normal price (prior to 1.7.2000) or transaction value (from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee to appear before him on an appointed day and time, and if he is satisfied that provisional assessment is not necessary, he may pass a reasoned order rejecting the same and also ordering the rate of duty or the value, to be applied by the assessee. 2.3 Where the Deputy/Assistant Commissioner of Central Excise is satisfied with the genuineness of the assessee's request, he will issue a specific order directing provisional assessment clearly stating: (a) the grounds on which Provisional Assessment has been ordered. (b) the rate and / or value, as the case may be, at which duty has to be provisionally paid. (c) the amount of differential duty for which bond is to be executed covering the period, if any, during which assessee paid duty provisionally under the deeming provisions, after applying the rate and/ or value specified in (b) above. (d) The amount of security or surety as may be fixed by Assistant! Deputy Commissioner keeping in view the instructions issued by the Board from time to time. 2.4 The assessee is required to mark the E.R.-1/E.R.-2/E.R.-3 (monthly/quarterly return) and documents covered under Provisional Assessment as "PROVISIONALLY ASSESSED" vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssistant/Deputy Commissioner of Central Excise will pass an order for depositing the amount in Consumer Welfare Fund in the prescribed manner. Otherwise, the refund shall be give along with interest at the rate specified by the Central Government by Notification Issued under Section 11BB of the Act from the first day of the month succeeding the month for which such refund is determined, till the date of refund. 2.9 Though it is incumbent upon the assessee to ensure that the bond amount and corresponding securities are sufficient, the Divisional as well as the Range Officer will also keep a strict vigil on such cases with the help of 'Provisional Assessment Register'. 2.10 The Assistant/Deputy Commissioner of Central Excise will be held responsible to ensure that bonds for proper amount i.e., equal to the difference between the amount of duty as may be finally assessed and the amount of duty provisionally assessed are taken, in case of general bonds and that these are backed by proper (25%) security! bank guarantee of the bond amount. 2:11 The format of bond for provisional assessment has been specified in Notification No. 56/2001-Central Excise (N.T.) dated 3.7.2001 (See An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of amendment may be sent to ADG (Systems), South Zone, Chennai. It is reiterated that in all sanction letters, the unique identifier number generated by the system should be quoted invariably. (Circular No. 715/31/2003-CX. Dated 19.05.2003) PART V MANNER OF PAYMENT OF DUTY AND ACCOUNT CURRENT 1 . Manner of payment of duty 1.1 Rule 8 of the said Rules provides that duty relating to removals ö during a month can be discharged within five days of the following month. In case of a manufacturer availing an exemption based on value of clearances during a financial year, the duty for a month may be discharged by fifteenth day of the succeeding month except that for month of March, the duty has to be discharged by 31st March in both the circumstances. If the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest @ 2% per month or Rs. 1000/- per day, Whichever is higher, for the period starting with the first day after due date till the date of actual payment of the outstanding amount: However, the total amount of interest payable shall not exceed the amount of duty which has not been paid by due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... working under the procedure shall maintain an account current (PersonaI Ledger Account) in the Form specified in Annexure-8 and as given in Part 7. 2.3 Each credit and debit entry should be made on separate lines and assigned a running serial number for the financial year. 2.4 The account current must be prepared in triplicate by writing with indelible pencil and using double-sided carbon - original and duplicate copies of the account current should be detached by the manufacturers and sent to the Central Excise Officer in charge along with the monthly! quarterly periodical return in form E.R.-1/E.R.-2/E.R.-3. 3. Credit and debit in account current 3.1 The assessee may make credit in the account current by making cash payment into the Treasury/or Authorised Bank. If allowed by the Commissioner, in exceptional cases, such as sudden strike in bank, natural calamity, riot etc., the credit can be taken after sending by Registered A.D. post or by a messenger a cheque for the requisite amount to the Chief Accounts Officer of the Commissionerate, provided procedure specified in this regard are followed. 3.2 Deposit into the Treasury of the authorised bank should be made in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons have been issued by the Principal Chief Controller of Accounts C.B.E.C., which may be referred to. 6. Procedure for deposit of Central Excise duties during bank strikes, natural Calamities etc., 6.1 This procedure is to be followed only when all the banks nominated to collect revenues within a Commissionerate are unable to transact business, due to strike of banks or sudden closure of banks due to riots, imposition of curfew or natural calamities such as flood, cyclones, etc. 6.2 Normally in all cases of closure of bank business due to strike by bank employees, the Public gets advance intimation either through the press, or otherwise. In all such cases, the assessees should make advance arrangements to deposit money into the banks and keep sufficient amounts in their account current [ so that they do not face any difficulty in the clearance of the goods during the period of the strike. 6.3 In cases, where the strike of bank employees is without notice, or where the strike called for after due notice is prolonged beyond a reasonable time (say over 3-4 days) or where there is sudden closure of banks due to riots, imposition of curfew or natural calamities such as fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the payment of duty/other dues through cheques should not be permitted in the following cases: - (i) If there is a strike in or closures of only one nominated bank of the Commissionerate and the assessee still remains in a position to deposit money in the other nominated banks or Departmental Treasury (wherever they exist) — unless the assessees' bank is the only nominated bank in the Commissionerate. (ii) In the case of declared Bank holidays because such holidays are known well in advance. (iii) Where the Public has been given advance intimation of a strike, unless the strike is unduly prolonged (say over 3-4 days). (iv) Where Bank employees adopt "go-slow" tactics. PART- VI SCRUTINY OF ASSESSMENT 1. Introduction 1.1 In view of the self-assessment procedure wherein the assessee himself assesses the duty liability, the responsibility of the departmental officers is to scrutinise the assessment made for verification of its correctness. In this connection, the instructions issued from time to time may be referred to. 2. Scrutiny of Assessment 2.1 The Central Excise Officers having jurisdiction over the factory/premises of the assessee is responsible for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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