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Various Acts & Rules »
 Customs Tariff 2009-10 - PART-II - Chapter 98 - Project imports, Laboratory chemicals, passenger's baggage
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 Customs Tariff 2009-10 - PART-II - Chapter 96 - Miscellaneous manufactured articles
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 Customs Tariff 2009-10 - PART-II - Chapter 94 - Furniture; bedding, mattresses, mattress supports
 Customs Tariff 2009-10 - PART-II - Chapter 93 - Arms and ammunition; parts and accessories thereof
 Customs Tariff 2009-10 - PART-II - Chapter 92 - Musical instruments; parts and accessories of such articles
 Customs Tariff 2009-10 - PART-II - Chapter 91 - Clocks and watches and parts thereof
 Customs Tariff 2009-10 - PART-II - Chapter 90 - Optical, photographic, cinematographic, measuring
 Customs Tariff 2009-10 - PART-II - Chapter 89 - Ships, boats and floating structures
 Customs Tariff 2009-10 - PART-II - Chapter 88 - Aircraft, spacecraft, and parts thereof

Central Excise Rules, 1944 - CHAPTER III - Levy and refund of, and exemption from duty
January, 07th 2011
CHAPTER III

LEVY AND REFUND OF, AND EXEMPTION FROM DUTY

7. Recovery of duty.-  Every person who produces, cures or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty or duties leviable on such goods, at such time and place and to such persons as may be designated, in, or under authority of these rules, whether the payment of such duty or duties is secured by bond or otherwise.

Provided that nothing contained in this rule shall apply to molasses produced in a khandsari sugar factory.

Provided further that in respect of goods falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), manufactured on job-work , the provisions of these rules shall apply subject to the provisions of rule 7AA.

7A. Recovery of duty on molasses produced by a khandsari sugar factory.-  Every person who procures molasses produced in a khandsari sugar factory, whether directly from such factory or otherwise, for use in the manufacture of any commodity, whether or not excisable, shall pay the duty or duties leviable on such molasses, as if such molasses has been manufactured by the procurer, at such time and to such persons as may be designated under these rules, whether the payment of such duty or duties be secured by bond or otherwise.

 

7AA. Recovery of duty on articles of apparel manufactured on job work.-Every person who gets the goods, falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured on his account on job work, shall pay the duty leviable on such goods, at such time and in such manner as may be specified under these rules, whether the payment of such duty be secured by bond or otherwise, as if such goods have been manufactured by such person:

 

Provided that such person may authorise the job worker to pay the duty leviable on such goods on his behalf and the job worker so authorized undertakes to discharge all liabilities and comply with all the provisions of these Rules:

 

Explanation.- For the purposes of this rule, the expression "job worker" shall be deemed to mean the person who undertakes the process or processes that brings into existence the finished goods, complete in all respects, falling under Chapter 62 of the said First Schedule, in his factory. For the removal of doubt, it is further clarified that the job-worker may also get part of the processing required for the manufacture of the said goods done by another person but should bring back the same for the completion of the manufacturing process in his factory.

8. Omitted.

9. Time and manner of payment of duty.- (1) No excisable goods shall be removed from any place where they are produced, cured or manufactured or any premises appurtenant thereto, which may be specified by the Commissioner in this behalf, whether for consumption, export or manufacture of any other commodity in or outside such place, until the excise duty leviable thereon is determined and indicated on each application in the proper form or on each gate pass, as the case may be, presented to the proper officer at such place and in such manner as is prescribed in these rules or as the Commissioner may require:

Provided that such goods may be deposited without payment of duty in a store-room or other place of storage approved by the Commissioner under rule 27 or rule 47 or in a warehouse appointed or registered under rule 140 or may be exported under bond as provided in rule 13:

Provided further that the molasses produced in a khandsari sugar factory may be removed without payment of duty leviable thereon and the duty of excise leviable on such molasses shall be paid by the procurer, as if such molasses has been manufactured by such procurer, on the date of receipt of such molasses in his factory:

Provided also that the goods falling under Chapter 62 of the First Schedule to Central Excise Tariff Act, 1985 (5 of 1986) produced or manufactured by a job worker may be removed without payment of duty leviable thereon and the duty of excise leviable on such goods shall be paid by the person referred to in rule 7AA, as if such goods have been produced or manufactured by him, on the date of removal of such goods from his premises registered under rule 174:

 

Explanation.- It is hereby clarified that where such person has authorised the job worker to pay the duty leviable on such goods under rule 7AA, such duty shall be paid by the job worker on the date of removal of such goods from his registered premises:

 

Provided also that such goods may be removed without payment or on part-payment of duty leviable thereon if the Central Government, by notification in the Official Gazette, allow the goods to be so removed under rule 49:

Provided also that the manufactures shall maintain an account current at such place or premises specified in this behalf or at a storeroom or warehouse duly approved, appointed or registered, by the Commissioner, and shall discharge the duty liability debiting such account current.

       (lA) Where a person keeping an account-current under the third proviso to sub-rule (1) makes an application to the Commissioner for withdrawing an amount from such account-current, the Commissioner may, for reasons to be recorded in writing, permit such person to withdraw the amount in accordance with such procedure as the Commissioner may specify in this behalf.

Form:B.14(Gen.sur.)
Form:D.D.2
Form:A.R.1

9A. Date for determination of duty and tariff valuation.-  (1) The rate of duty and tariff valuation, if any, applicable to any excisable goods shall be the rate and valuation in force
           (i) in the case of goods removed from the premises of a curer on payment of duty, on the date on which the duty is
               assessed;
           (ii) in the case of goods removed from a factory or a warehouse, subject to sub-rules (2), (3) and (3A), on the date of
                 the actual removal of such goods from such factory or warehouse; and
           (iii) in the case of molasses manufactured in a khandsari sugar factory, on the date of receipt of such molasses
                 in the factory  of the procurer

(iv) in the case of goods falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured on job work, on the date of removal of such goods by the person referred to in rule 7AA from his premises registered under rule 174. 

           (2) If the goods have previously been removed from a warehouse to be re-warehoused, and the duty is paid on such goods without their being re-warehoused, the rate and valuation, if any, applicable thereto shall be the rate and valuation, if any, in force on the date on which duty is paid or, if duty is paid through an account-current maintained with the Commissioner under rule 9, on the date on which an application in the proper form is delivered to the officer-in-charge of the warehouse from which the goods were removed.

           (3) Where any person who has removed excisable goods for export in bond fails to export or to furnish proof of such export to the satisfaction of the Commissioner or diverts the goods for home consumption, the rate of duty leviable and the tariff valuation, if any, in respect of such goods shall be the rate and valuation in force on the date on which the duty is paid.

           (3A) Where duty becomes chargeable on any material or component parts in respect of which credit of duty had been allowed under rule 56A, the rate of duty leviable and the tariff valuation, if any, in respect of such material or component parts shall be the rate and valuation in force on the date on which the duty is paid:

    Provided that where such material or component parts are removed from the factory for home consumption on payment of duty, such duty shall in no case be less than the amount of credit that has been allowed in respect of such material or component parts under rule 56A.

           (4) The rate and valuation, if any, applicable to cases of losses of goods shall

(i)       where the loss occurs in a curer's premises or in a curer's private  storeroom, be the rate and valuation, if any, in force on
         the date on which such loss is discovered by the proper officer or made known tu him;

(ii)      where the loss occurs in transit from a curer's premises or a curer's private  store-room to a warehouse, from one
         warehouse to another or during the course of processing of the goods in a warehouse, be the rate and valuation, if any, in
         force on the date on which the goods are warehoused in the warehouse of destination or the processing thereof is
         completed, as the case may be; and

(iii)      where the loss occurs in storage, whether in a factory or in a warehouse, be the rate and valuation, if any, in force on the
          date on which such loss is discovered by the proper officer or made known to him.

          (5) In all other cases, the rate of duty and tariff valuation, if any, applicable to excisable goods shall be the rate and valuation in force on the date on which the notice for demand of duty is issued or on the date on which duty is paid, whichever is earlier.

Explanation.For the purposes of clause (ii) of sub-rule (1), goods

(i) on which duty has been paid;

(ii) which have been loaded into railway wagon or other vehicle; and

(iii) for which the railways or the transport agency, as the case may be, has issued a receipt in favour of the purchaser of the said
     goods,

shall be deemed to have been removed from the factory or warehouse, as the case may be, even though the wagon or other vehicle laden with the said goods may continue to be stationed within the factory or warehouse premises.

9B. Provisional assessment to duty.- (1) Notwithstanding anything contained in these rules,

    (a)  where the assessee is unable to determine the value of excisable goods in terms of section 4 of the Act on account of
         non-availability of any document or information; or

    (b)  where the assessee is unable to determine the correct classification of the goods while filing the declaration under
          rule 173B;

 the said assessee may request the proper officer in writing giving the reasons for provisional assessment to duty, and the proper officer may direct after such inquiry as he deems fit, that the duty leviable on such goods shall be assessed provisionally at such rate or such value (which may not necessarily be the rate or price declared by the assessee) as may be indicated by him, if such assessee executes a bond in the proper form with such surety or sufficient security in such amount, or under such conditions as the proper officer deems fit, binding himself for payment of difference between the amount of duty as provisionally assessed and as finally assessed:

Provided that all clearances in respect of excisable goods covered under such request by the assessee submitted with the proper officer under the dated acknowledgement shall be deemed to be cleared as provisionally assessed to duty at such rate or at such value as declared by the assessee, till the date when the direction of the proper officer is issued and communicated to the assessee:

      Provided further that the proper officer where he is satisfied that the self-assessment made by the assessee is not in order, he may direct him to resort to provisional assessment and on receipt of such directions the assessee shall comply with such directions.

(2) Omitted

(3) The Commissioner may permit the assessee to enter into a general bond in the proper Form with such surety or sufficient security in such amount or under such conditions as the Commissioner approves for assessment of any goods provisionally from time to time:

      Provided that, in the event of death, insolvency or insufficiency of the surety or where the amount of the bond is inadequate, the Commissioner may, in his discretion, demand a fresh bond and may, if the security furnished for a bond is not adequate, demand additional security.

(4) The goods provisionally assessed under sub-rule (1) may be cleared for home consumption or export in the same manner as the goods which are not so assessed.

(5) When the duty leviable on the goods is assessed finally in accordance with the provisions of these rules, the duty provisionally assessed shall be adjusted against the duty finally assessed, and if the duty provisionally assessed falls short of, or is in excess of the duty finally assessed, the assessee shall pay the deficiency or be entitled to a refund, as the case may be.

    Provided that, if an assessee is entitled to a refund, such refund shall not be made to him except in accordance with the procedure established under sub-section (2) of section 11B of the Act.

(6) Notwithstanding the provisions of self-assessment made in this rule, in cases of provisional assessment, the final assessment shall be made by the proper officer.
Form:B.10(sur.)
Form:B.10(sec.)
Form:B.13(Gen.sur.)
Form:B.13(Gen.sec.)
Form:B.16(Gen.sur./Gen.sec.)
Form:B.17(Gen.sur./Gen.sec.)
Form:A.R.1

9C. Rules to apply to procurer.-  The provisions of these rules shall apply to a procurer of molasses as if such molasses has been manufactured by him.

9D. Application of rules in relation to articles of apparel and clothing accessories, not knitted or crocheted.- The provisions of these rules shall apply to a person who is liable to pay the duty or duties of excise leviable on goods falling under Chapter 62 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) under rule 7AA as if such goods have been manufactured by him.

10 . Omitted

11. Omitted

12. Rebate of duty.-  (1) The Central Government may, from time to time, by notification in the Official Gazette, grant rebate of
               (a) duty paid on the excisable goods;
               (b) duty paid on materials used in the manufacture of goods;

           If such goods are exported outside India or shipped as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft, to such extent and subject to such safeguards, conditions and limitations as regards the class or description of goods, class or description of materials used for manufacture thereof, destination, mode of transport and other allied matters as may be specified in the notification:

          Provided that if the Commissioner of Central Excise or as the case may be the Maritime Commissioner of Central Excise is satisfied that the goods have in fact been exported, he may, for reasons to be recorded in writing, allow, the whole or any part of the claim for such rebate, even if all or any of the conditions laid down in any notification issued under this rule have not been complied with.

(2) Where the Central Government does not grant under clause (a) of sub-rule (1) either wholly or partially any rebate of duty paid on goods exported to a country outside India, it may, in order to promote exports or fulfil obligations arising out of any treaty entered into between India and the Government of that country, provide, by notification in the Official Gazette, for payment to the Government of that country an amount not exceeding the duty paid on such goods which are exported out of India to that country.

(3) No rebate of duty in respect of excisable materials used in the manufacture of goods exported out of India under clause (b) of sub-rule (1) shall be allowed, if the exporter avails of drawback of the said duty under the Customs and Central Excise Duties Drawback Rules, 1995 or avails of credit of said duty under section AA of Chapter V of the Central Excise Rules, 1944.

ExplanationsIn this rule, the expressions,

(i) "manufacture" includes the process of blending of any goods or making alterations or any other operation thereon;
            (ii) "materials" includes raw materials, consuamables (other than fuel) components, semi-finished goods, assemblies, sub-assemblies, intermediate goods, accessories, parts and packaging materials required for manufacture of export goods but does not include capital goods used in the factory in or in relation to manufacture of export goods.

            (iii)  Omitted.

 (4) The provisions of this rule shall not apply to such excisable goods, export of which are prohibited under any law for the time being in force.

13. Export in bond of goods on which duty has not been paid.-

(1) The Central Government may, from time to time, by notification in the Official Gazette

    (a) permit export of specified excisable goods in bond without payment of duty in the like manner, as the goods regarding which the rebate is granted under sub-rule (1) of rule 12, from a factory of manufacture or warehouse or any other premises as may be approved by the Commissioner of Central Excise;

    (b) specify materials, removal of which without payment of duty from the place of manufacture or storage for use in the manufacture in bond of export goods, may be permitted by the Commissioner of Central Excise;

    (c) allow removal of excisable material without payment of duty for the manufacture  of export goods, as may be specified, to be exported in execution of one or more export orders; or for replenishment of duty paid materials used in the manufacture of such export goods already exported for the execution of such orders, or both;

subject to such safeguards, conditions and limitations as regards the class or description of goods, class or description of materials used for manufacture thereof, destination, mode of transport and other allied matters as may be specified in the notification which the exporter undertakes to abide by entering into a bond in the proper form with such surety or sufficient security, and under such conditions as the Commissioner approves.

(2) The Central Government may, from time to time, by notification in the Official Gazette, permit export of specified excisable goods in bond, without payment of duty from a factory of manufacture or warehouse, to Nepal or Bhutan, subject to such conditions or limitations as regards the class of goods, destination, mode of transport and other matters as may be specified therein.

Explanation I. In this rule, the expression "manufacture" includes the process of blending of any goods or making alterations or any other operation thereon.

Explanation II. In this rule, the term "materials" shall include raw materials, consumables ( other than fuel ), components, semi-finished goods, assemblies, sub-assemblies, intermediate goods, accessories, parts and packaging materials used in the manufacture of export goods but does not include capital goods used in the factory in or in relation to manufacture of export goods.
Form:B.1(sur.)
Form:B.1(sec.)
Form:B.16(Gen.sur./Gen.sec.)
Form:B.17(Gen.sur./Gen.sec.)
Form:D.D.2

14. Exporter may enter into a general bond.-  The Commissioner may permit any  person desirous of exporting from India, in the manner provided in the foregoing rules, excisable goods on which duty has not been paid, to enter into a general bond in the proper Form, with such surety or sufficient security, in such amount, and under such conditions, as the Commissioner approves for the export, from time to time, of such excisable goods within the period prescribed for goods exported under rule 12:

Provided that, in the event of death, insolvency or insufficiency of the surety, or where the amount of the bond is inadequate, the Commissioner may, in his discretion, demand a fresh bond; and may, if the security furnished for a bond is not adequate, demand additional security.
Form:B.1(Gen.sur.)
Form:B.1(Gen.sec.)
Form:B.16(Gen.sur./Gen.sec.)
Form:B.17(Gen.sur./Gen.sec.)
Form:D.D.2

Form:D.D.2

14A. Omitted.

14B. Penalty for removing excisable goods, the duty leviable on which exceeds the bond amount.-  (1) Except with the prior permission of the Commissioner, no person shall at any time remove from a factory or warehouse excisable goods for export, the duty leviable on which together with the duty leviable on the goods removed from the factory or warehouse and not exported until such time exceeds the amount of the bond executed under rule 14.

 
 
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