TO BE PUBLISHED IN PART-II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY, DATED THE 11TH APRIL, 2000 22 CHAITRA 1922 (SAKA) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE New Delhi, dated the 11th April, 2000 22 Chaitra, 1922 (Saka) NOTIFICATION No. 34/2000-Central Excise (N.T.), dated 11-4-2000.
In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 1944, namely :-
1. These rules may be called the Central Excise (Sixth Amendment) Rules, 2000.
2. In rule 49 of the Central Excise Rules, 1944 (hereinafter referred to as the said rules), in sub-rule (1), for clause (a), following shall be substituted, namely.- "(1) (a) Every manufacturer, other than a manufacturer who is availing of the exemption under a notification based on value of clearances in a financial year, shall discharge his duty liability in respect of clearances of excisable goods from the place or premises specified under rule 9 or from a store room or other place of storage approved by the Commissioner under rule 47 made:-
1. during the first fortnight of the month, by the twentieth day of that month,
2. during the second fortnight of the month, other than the month of March, by the fifth day of the succeeding month; and
3. during the second fortnight of March, in the following manner, namely :- (I) the manufacturer shall pay, by the 31st day of March, a sum equal to the aggregate of - (A) the amount of duty paid on actual clearances made upto the twenty fifth day of March, and (B) an amount calculated, for the remaining six days of March, pro-rata of actual duty payable under (A) above.
(II) Where the payment made in the manner specified in sub-clause (1) above.- (A) is less than the actual duty liability for the said second fortnight of March, the manufacturer shall pay the balance amount of duty by the twentieth day of April of that year;
(B) is more than the actual duty liability for the second fortnight of March, the excess amount may be adjusted against the duty liability for the first fortnight of the month of April of that year and where such adjustment is not possible for any reason, against the duty liability for any subsequent fortnight.
Illustration I. A manufacturer clears goods worth Rs. 90 Lakhs during the period from 16-3-2001 to 25-3-2001 and goods worth Rs. 60 Lakhs during the period from 26-3-2001 to 31-3-2001. Assuming that the rate of duty is 16% ad valorem, the manufacturer shall pay a sum of Rs. 14.4 lakhs plus Rs. 8.64 lakhs [ (90/10) x 6 x 0.16] by 31-3-2001. The manufacturer shall pay the balance of duty liability of Rs. 0.96 lahks (Rs. 24 lakhs minus Rs. 23.04 lakhs) by 20-4-2001.
Illustration II. A manufacturer clears goods worth Rs. 90 lakhs during the period from 16-3-2001 to 25-3-2001 and goods worth Rs. 50 lakhs during the period from 26.3.2001 to 31.3.2001. Assuming that the rate of duty is 16% ad valorem, the manufacturer shall pay a sum of Rs. 14.4 Lakhs plus Rs. 8.64 Lakhs [(90/10) x 6 x 0.16] by 31.3.2001. The manufacturer is eligible to utilize the excess payment of Rs. 0.64 Lakhs as adjustment against the duty liability for the 1st fortnight of April or any subsequent fortnight.
(aa) Every manufacturer availing of the exemption under a notification based on the value of clearances in a financial year shall discharge his duty liability in respect of clearances made during a calendar month, by the 15th day of the succeeding month.
Explanation - For removal of doubts, it is hereby clarified that the duty liability under clause (a) or clause (aa) shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the date specified.
1. In rule 173 (G) of the said rules, in sub-rule (1), for clause (a), following clause shall be substituted namely:- "(I)(a) Every manufacturer, other than a manufacturer who is availing of the exemption under a notification based on the value of clearances in a financial year, shall discharge his duty liability in respect of clearances of excisable goods from the place or premises specified under rule 9 or from a store room or other place of storage approved by the Commissioner under rule 47 made :
1. during the first fortnight of the month, by the twentieth day of that month;
2. during the second fortnight of the month, other than the month of March, by the fifth day of the succeeding month, and
3. during the second fortnight of March, in the following manner, namely:
(I) the manufacturer shall pay, by the 31st day of March, a sum equal to the aggregate of - (A) the amount of duty payable on actual clearances made up to the twenty fifth day of March; and (B) an amount calculated, for the remaining six days of March, pro-rata of the actual duty payable under (A) above.
(II) Where the payment made in the manner specified in sub-clause (I) above- (A) is less than the actual duty liability for the said second fortnight of March, the manufacturer shall pay the balance amount of duty by the 20th day of April of that year;
(B) is more than the actual duty liability for the second fortnight of March, the excess amount may be adjusted against the duty liability for the first fortnight of the month of April of that year and where such adjustment is not possible for any reason, against the duty liability for any subsequent fortnight,
Illustration I A manufacturer clears goods worth Rs. 90 Lakhs during the period from 16.3.2001 to 25.3.2001 and goods worth Rs. 60 Lakhs during the period from 26.3.2001 to 31.3.2001. Assuming that the rate of duty is 16% ad valorem, the manufacturer shall pay a sum of Rs. 14.4 Lakhs plus Rs. 8.64 Lakhs [(90/10)x6x0.16] by 31.3.2001. The manufacturer shall pay the balance of duty liability of Rs. 0.96 Lakhs (Rs. 24 Lakhs - Rs. 23.04 Lakhs) by 20.4.2001.
Illustration II A manufacturer clears goods worth Rs. 90 Lakhs during the period from 16.3.2001 to 25.3.2001 and goods worth Rs. 50 Lakhs during the period 26.3.2001 to 31.3.2001. Assuming that the rate of duty is 16% ad valorem, the manufacturer shall pay a sum of Rs. 14.4 Lakhs plus Rs. 8.64 Lakhs [(90/10}x6x0.16] by 31.3.2001. The manufacturer is eligible to utilize the excess payment of Rs. 0.64 Lakhs as adjustment against duty liability for the first fortnight of April or any subsequent fortnight.
(aa) Every manufacturer availing of the exemption under a notification based on the value of clearances in the financial year shall discharge his duty liability in respect of clearances made during a calendar month, by the 15th day of the succeeding month.
Explanation - For removal of doubts, it is hereby clarified that the duty liability under clause (a) or clause (aa) shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the date specified".
(Prashant Kumar Sinha) Under Secretary to the Government of India F.No. B-4/6/2000-TRU Note : The principal rules were published in the Gazette of India vide notification No. IV DCE, dated the 28th February, 1944 and subsequently amended by Ministry of Finance (Department of Revenue), notification no. 31/2000-Central Excise (N.T.)
dated the 31st March, 2000 vide GSR No. 302 (E) dated the 31st March,2000