Central Excise Rules; 2017

1 · Short title; extent and commencement

2 · Definitions:

4 · Duty payable on removal

5 · Date for determination of duty and tariff valuation:

6 · Assessment of duty:

7 · Provisional assessment -

8 · Manner of payment: (1) The duty on the goods removed from the factory or the warehouse during a month shall be paid by the 6th day = of the following month; if the duty is paid electronically through internet banking and by the Sth day of the following month; in any other case Provided that in case of goods removed during the month of March; the duty shall be paid by the 31st day of March

9 · Registration:

10 · Daily stock account:

11 · Goods to be removed on invoice:

12 · Filing of return: (1) Every assessee shall submit to the Superintendent of Central Excise a monthly return in the form specified by notification by the Board, of production and removal of goods and other relevant particulars, within ten days after the close of the month to which the return relates

13 · Power to impose restrictions in certain types of cases: Notwithstanding anything contained in these rules, where the Central Government; having regard to the extent of evasion of duty, nature and type of offences or such other factors as may be relevant; is of the opinion that in order to prevent evasion of, or default in payment of duty of excise, it is necessary in the public interest to provide for certain measures including restrictions on a manufacturer; registered importer; first stage and second stage dealer or an exporter may, by notification in the Official Gazette, specify the nature of restrictions including suspension of registration in case ofan importer or a dealer, types of facilities to be withdrawn and procedure for issue of such order by the Principal Chief Commissioner of Central Excise or Chief Commissioner of Central Excise, as the case may be.

14 · Special procedure for payment of duty: -

15 · Credit of duty on goods brought to the factory: (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made refined, re-conditioned or for any other reason; the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2017 and utilise this credit according to the said rules_ (2) #f the process to which the goods are subjected before being removed does not amount to manufacture , the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub- section (3) of section 3 or section 4 or section 4A of the Act; as the case may be_

16 · Warehousing provisions. (1) The Central Government may by notification, extend the facility of removal of any excisable goods from the factory of production to a warehouse, or from one warehouse to another warehouse without payment of duty: (2) The facility under sub-rule (1) shall be available subject to such conditions, including penalty and interest; limitations, including Iimitation with respect to the period for which the goods may remain in the warehouse, and safeguards and procedure, including in the matters relating to dispatch; movement; receipt; accountal and disposal of such goods, as may be specified by the Board. (3) The responsibility for payment of duty on the goods that are removed from the factory of production to a warehouse or from one warehouse to another warehouse shall be upon the consignee. (4) #f the goods dispatched for warehousing or re-warehousing are not received in the warehouse, the responsibility for payment of duty shall be upon the consignor:

17 · Remission of duty:

18 · Rebate of duty:

19 · Export without payment of duty: (1) Any excisable goods may be exported without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, as may be approved by the Principal Commissioner or Commissioner, as the case may be. (2) Any material may be removed without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of goods which are exported, as may be approved by the Principal Commissioner or Commissioner; as the case may be.

20 · Removal of goods for job work, etc. Any inputs received in a factory may be removed as such or after being partially processed to a job worker for further processing, testing, repair; re-conditioning or any other purpose subject to the fulfilment of conditions specified in this behalf by the Commissioner of Central Excise having jurisdiction:

21 · Special procedure for removal of semi-finished goods for certain purposes: The Principal Commissioner of Central Excise or Commissioner of Central Excise , as the case may be may by special order and subject to conditions as may be specified by the Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be, permit a manufacturer to remove excisable goods which are in the nature of semi-finished goods, for carrying out certain manufacturing processes, to some other premises and to bring back such goods to his factory; without payment of duty, or to some other registered premises and allow these goods to be removed on payment of duty or without payment of duty for export from such other registered premises.

22 · Special procedure for removal of excisable goods for carrying out certain processes. The Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be, by special order and subject to such conditions as may be specified by him, permit a manufacturer to remove excisable goods manufactured in his factory, without payment of duty, for carrying out tests or any other process not amounting to manufacture, to any other premises, whether or not registered, and after carrying out such tests or any such other process may allow;- (a) bringing back such goods to the said factory without payment of duty, for subsequent clearance for home consumption or export; as the case may be; or (b) removal of such goods from the said other premises; for home consumption on payment of duty leviable thereon or without payment of duty for export; as the case may be Provided that this rule shall not apply to the goods known as "prototypes" which are sent out for trial or development test

23 · Removal of goods by a Hundred percent Export-Oriented Undertaking for Domestic Tariff Area. (1) Where any goods are removed from a hundred per cent export-oriented undertaking to domestic tariff area, such removal shall be made under an invoice by following the procedure specified in rule 11, and the duty leviable on such goods shall be paid by utilizing the CENVAT credit or by crediting the duty payable to the account of the Central Government in the manner specified in rule 8 _

24 · Access to a registered premises:

25 · Power to stop and search:

26 · Power to detain or seize goods: #a Central Excise Officer; has reason to believe that any goods, which are liable to excise duty but no duty has been paid thereon or the said goods were removed with the intention of evading the duty payable thereon, the Central Excise Officer may detain or seize such goods.

27 · Return of records:-

28 · . Confiscation and penalty: (1) Subject to the provisions of section 11 AC ofthe Act; ifany producer; manufacturer; registered person of a warehouse, or an importer who issues an invoice on which CENVAT credit can be taken; or a registered dealer, (a) removes any excisable goods in contravention of any of the provisions of these rules or the notifications issued under these rules; or

29 · Penalty for certain offences:

30 · General penalty: A breach of these rules shall; where no other penalty is provided herein or in the Act; be punishable with a penalty which may extend to five thousand rupees and with confiscation of the goods in respect of which the offence is committed.

31 · Confiscated property to vest in Central Government:

32 · Disposal of confiscated goods: Confiscated goods in respect of which the option of paying a fine in lieu of confiscation has not been exercised, shall be sold, destroyed or otherwise disposed of in such manner as the Principal Commissioner or Commissioner, as the case may be may direct:

33 · Storage charges in respect of goods confiscated and redeemed - # the owner of the goods, the confiscation of which has been adjudged, exercises his option to pay fine in lieu of confiscation; he may be required to pay such storage charges as may be determined by the adjudicating officer

34 · Power to issue supplementary instructions. The Board or the Principal Chief Commissioner or Chief Commissioner; as the case may be or the Principal Commissioner or Commissioner; as the case may be, may issue written instructions providing for any incidental or supplemental matters, consistent with the provisions of the Act and these rules_

35 · Transitional provision: