Central Excise Rules - CHAPTER X Remission of duty on goods used
January, 12th 2011
REMISSION OF DUTY ON GOODS USED FOR SPECIAL INDUSTRIAL PURPOSES
192. Application for concession.- Where the Central Government has, by notification under rule 8 or section 5A of the Act, as the case may be, sanctioned the remission of duty on excisable goods, other than salt, used in a specified industrial process, any person wishing to obtain remission of duty on such goods, shall make application to the Commissioner in the proper Form stating the estimated annual quantity of the excisable goods required and the purpose for and the manner in which it is intended to use them and declaring that the goods will be used for such purpose and in such manner. If the Commissioner is satisfied that the applicant is a person to whom the concession can be granted without danger to the revenue, and if he is satisfied, either by personal inspection or by that of an officer subordinate to him that the premises are suitable and contain a secure store-room suitable for the storage of the goods, and if the applicant agrees to bear the cost of such establishment as the Commissioner may consider necessary for supervising operation in his premises for the purposes of this Chapter, the Commissioner may grant the application, and the applicant shall then enter into a bond in the proper Form with such surety or sufficient security, in such amount and under such conditions as the Commissioner approves. Where, for this purpose, it is necessary for the applicant to obtain an Excise registration certificate, he shall submit the requisite application along with the proof for payment of registration certificate fee and shall then be granted a registration certificate in the proper Form. The concession shall, unless renewed by the Commissioner, cease on the expiry of the registration Certificate:
193. Packing and transport of concessional goods.- Goods obtained under rule 192 shall be transported immediately from the place of procurement to the applicant's premises. They shall be packed in such manner as the Commissioner may direct, and the weight of the goods in each package shall be marked on it, and where necessary, the good shall be covered by a transport document.
194. Storage and accounts.- (1) The goods so obtained shall be stored in a store-room, the key of which shall remain in personal custody of the applicant or his manager and the applicant or his manager shall maintain proper records indicating among other particulars, the, quantity, value, rate and amount of duty, marks and numbers, as the case may be, in regard to receipts, manufacture or any other processing as are carried on the goods received, packaging, storage and delivery of the goods.
(2) Each consignment of excisable goods procured under this concession shall be stored separately in the store-room, and goods of each distinct variety shall be kept together in distinct lots and shall be distinctively marked. The applicant shall not use goods of any variety from such consignment, until goods of the same variety previously procured have been expended and entered as expended in the accounts
Provided that the Commissioner may, by order and for reasons to be recorded therein, exempt any applicant or any class of goods from the operation of this sub-rule.
(3) Within seven days after the close of each quarter, every person registered to obtain, excisable goods for special industrial purposes shall submit to the proper officer a quarterly return in the proper Form, showing the nature and quantity of such goods used and of commodities manufactured, the manner of manufacture, and such other particulars as the Commissioner may, by general or special order, require. Form:R.G.16 Form:R.T.11
195. Disposal of refuse of excisable goods.- All refuse of, excisable goods obtained under rule 192 which may remain after the completion of the industrial process shall be stored separately, and shall not be disposed of except after examination by, and with the written permission, and in accordance with the instructions of, the proper officer.
196. Duty leviable on excisable goods not duly accounted for.- (l) If any excisable goods obtained under rule 192 are not duly accounted for as having been used for the purpose and in the manner stated in the application or are not shown to the satisfaction of the proper officer to have been lost or destroyed by natural causes or by unavoidable accident during transport from the place of procurement to the applicant's premises or during handling or storage in the premises approved under rule 192, the applicant shall, on demand by the proper officer, immediately pay the duty leviable on such goods. The concession may at any time be withdrawn by the Commissioner if a breach of these rules is committed by the applicant, his agent or any person employed by him. In the event of such a breach, the Commissioner may also order the forfeiture of the security deposited under rule 192 and may also confiscate the excisable goods, and all goods manufactured from such goods, in store at the factory.
(2) Where the duty becomes chargeable in terms of sub-rule (1) on any excisable goods, the rate of duty and the tariff valuation, if any, applicable to such goods shall be the rate and valuation in force
(i) in the case of actual removal of goods from the premises, on the date of such removal;
(ii) in the case of loss of goods in transit during transport from the place of procurement to the applicant's premises, on the date on which goods are received in the applicant's premises;
(iii) in the case of loss of goods while in storage or during handling in premises approved under rule 192, on the date on which such loss is discovered by the proper officer or made known to him;
(iv) in all other cases, 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.
196A. Surplus excisable goods.- If any excisable goods obtained under rule 192 become surplus to the needs of the applicant for any reason, the applicant may, with the previous approval of the proper officer
(i) clear the goods on payment of duty, the rate of duty and the tariff valuation, if any, applicable to such goods being the rate and valuation, if any, in force on the date of actual removal of the goods from the applicant's premises; or
(ii) return the goods to the original manufacturer of the goods from whom the applicant had obtained them under bond and every such returned goods shall be added to the non-duty paid stock of the original manufacturer and dealt with accordingly. The applicant shall be accountable for the loss or deficiency, if any, during transport of the goods from the applicant's premises to the place of the original manufacturer; or
(iii) clear the goods for export in the manner provided in rule 12 or 13 or 14, as the case may be.
196AA. Transfer of excisable goods.- The applicant may, with the previous approval of the proper officer, despatch the excisable goods obtained under rule 192 to another manufacturer who is eligible to the concession in respect of such goods and to whom a registration certificate has been granted under rule 192 for obtaining such goods.
196B. Disposal of defective or damaged excisable goods.- If anyexcisable goods obtained under rule 192 are on receipt found to be defective or damaged or unsuitable to the needs of the applicant for any reason, such goods shall be stored separately and the applicant may, after examination by, and with the written permission of, the proper officer
(i) return such goods to the original manufacturer of the goods from whom the applicant had obtained them under bond within such period and subject to such conditions as may be prescribed by the Commissioner in this behalf, and every such returned goods shall be added to the non-duty-paid stock of the original manufacturer and dealt with accordingly. The applicant shall be accountable for the loss or deficiency, if any, during transport of the goods from the applicant's premises to the place of the original manufacturer; or
(ia)clear such goods on payment of duty, the, rate of duty and the tariff valuation, if any, applicable to such goods being the rate and valuation, if any, in force on the date of actual removal of such goods from the applicant's premises; or
(ii) destroy such goods, where the duty payable thereon has been remitted.
196BB. Movement of excisable goods.- (1) The applicant may apply to the Commissioner for removal of the excisable goods obtained under rule 192 as such, or the excisable goods which have been partially processed during the use in the industrial process, to a place outside for purposes of test, repair, refining, reconditioning or carrying out any other operations necessary for the completion of the industrial process and return thereafter to his premises for further use in the industrial process:
Provided that the waste, if any, is also returned to the applicant's premises after such operation and disposed of in the manner laid down in rule 195.
(2) The Commissioner may on receipt of an application under sub-rule (1), permit such removal and return subject to such terms, conditions and limitations, as he may impose.