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CentralExcise,Rules,2002
[NotificationNo.4/2002C.E.(N.T.),dated132002

Amendedby
NotificationNo.06/2003C.E.(N.T.),dated11022003
NotificationNo.12/2003C.E.(N.T.),dated01032003
NotificationNo.17/2003C.E.(N.T.),dated13032003
NotificationNo.24/2003C.E.(N.T.),dated25032003
NotificationNo.33/2003C.E.(N.T.),dated10042003
NotificationNo.48/2003C.E.(N.T.),dated17052003
NotificationNo.69/2003C.E.(N.T.),dated15092003
NotificationNo.01/2004C.E.(N.T.),dated08012004
NotificationNo.11/2004C.E.(N.T.),dated09072004
NotificationNo.18/2004C.E.(N.T.),dated06092004
NotificationNo.27/2004C.E.(N.T.),dated28092004
NotificationNo.34/2004C.E.(N.T.),dated01112004
NotificationNo.07/2005C.E.(N.T.),dated24022005
NotificationNo.12/2005C.E.(N.T.),dated01032005
NotificationNo.17/2005C.E.(N.T.),dated31032005
NotificationNo.13/2006C.E.(N.T.),dated01062006
NotificationNo.18/2006C.E.(N.T.),dated30092006
NotificationNo.26/2006C.E.(N.T.),dated28122006
NotificationNo.30/2006C.E.(N.T.),dated30122006
NotificationNo.03/2007C.E.(N.T.),dated08022007
NotificationNo.08/2007C.E.(N.T.),dated01032007
NotificationNo.34/2007C.E.(N.T.),dated11092007
NotificationNo.36/2007C.E.(N.T.),dated14092007
NotificationNo.08/2007C.E.(N.T.),dated01032007
NotificationNo.03/2008C.E.(N.T.),dated18012008
NotificationNo.07/2008C.E.(N.T.),dated25012008
NotificationNo.23/2008C.E.(N.T.),dated23052008

Inexerciseofthepowersconferredbysection37oftheCentralExciseAct,1944(1of1944)andinsupersessionof
theCentralExcise(No.2)Rules,2001,exceptasrespectsthingsdoneoromittedtobedonebeforesuch
supersession,theCentralGovernmentherebymakesthefollowingrules,namely:

RULE1.Shorttitle,extentandcommencement.(1)TheserulesmaybecalledtheCentralExciseRules,
2002.
(2)TheyextendtothewholeofIndia.
(3)Theyshallcomeintoforceonthe1stdayofMarch,2002.
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RULE2.Definitions.Intheserules,unlessthecontextotherwiserequires,
(a)ActmeanstheCentralExciseAct,1944(1of1944)
(b)assessmentincludesselfassessmentofdutymadebytheassesseeandprovisionalassessmentunderrule
7
(c)assesseemeansanypersonwhoisliableforpaymentofdutyassessedoraproducerormanufacturerof
excisablegoodsoraregisteredpersonofaprivatewarehouseinwhichexcisablegoodsarestoredandincludesan
authorizedagentofsuchperson
(d)BoardmeanstheCentralBoardofExciseandCustomsconstitutedundertheCentralBoardofRevenueAct,
1963(54of1963)
(e)dutymeansthedutypayableundersection3oftheAct
(ea)largetaxpayermeansapersonwho,
(i)hasoneormoreregisteredpremisesundertheCentralExciseAct,1944(1of1944)or
(ii)hasoneormoreregisteredpremisesunderChapterVoftheFinanceAct,1994(32of1994)
andisanassesseeundertheIncomeTaxAct,1961(43of1961),whoholdsaPermanentAccountNumberissued
undersection139AofthesaidAct,andsatisfiestheconditionsandobservestheproceduresasnotifiedbythe
CentralGovernmentinthisregard.]
(f)notificationmeansthenotificationpublishedintheOfficialGazette
(g)TariffActmeanstheCentralExciseTariffAct,1985(5of1986)
(h)warehousemeansanyplaceorpremisesregisteredunderrule9and
(i)wordsandexpressionsusedhereinbutnotdefinedanddefinedintheActshallhavethemeaningsrespectively
assignedtothemintheAct.
RULE3.AppointmentandjurisdictionofCentralExciseOfficers.(1)TheBoardmay,bynotification,
appointsuchpersonasitthinksfittobeCentralExciseOfficertoexercisealloranyofthepowersconferredbyor
undertheActandtheserules.
(2)TheBoardmay,bynotification,specifythejurisdictionofaChiefCommissionerofCentralExcise,
CommissionerofCentralExciseorCommissionerofCentralExcise(Appeals)forthepurposesoftheActandthe
rulesmadethereunder.
(3)AnyCentralExciseOfficermayexercisethepowersanddischargethedutiesconferredorimposedbyorunder
theActortheserulesonanyotherCentralExciseOfficerwhoissubordinatetohim.
RULE4.Dutypayableonremoval.(1)Everypersonwhoproducesormanufacturesanyexcisablegoods,or
whostoressuchgoodsinawarehouse,shallpaythedutyleviableonsuchgoodsinthemannerprovidedinrule8or
underanyotherlaw,andnoexcisablegoods,onwhichanydutyispayable,shallberemovedwithoutpaymentof
dutyfromanyplace,wheretheyareproducedormanufactured,orfromawarehouse,unlessotherwiseprovided:
[***]
(2)Notwithstandinganythingcontainedinsubrule(1),wheremolassesareproducedinakhandsarisugarfactory,
thepersonwhoprocuressuchmolasses,whetherdirectlyfromsuchfactoryorotherwise,foruseinthemanufacture
ofanycommodity,whetherornotexcisable,shallpaythedutyleviableonsuchmolasses,inthesamemannerasif
suchmolasseshavebeenproducedbytheprocurer.
[(3)***]
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(4)Notwithstandinganythingcontainedinsubrule(1),Commissionermay,inexceptionalcircumstanceshaving
regardtothenatureofthegoodsandshortageofstoragespaceatthepremisesofthemanufacturerwherethe
goodsaremade,permitamanufacturertostorehisgoodsinanyotherplaceoutsidesuchpremises,without
paymentofdutysubjecttosuchconditionsashemayspecify.
RULE5.Datefordeterminationofdutyandtariffvaluation.(1)Therateofdutyortariffvalueapplicableto
anyexcisablegoods,otherthankhandsarimolasses,shallbetherateorvalueinforceonthedatewhensuchgoods
areremovedfromafactoryorawarehouse,asthecasemaybe.
(2)Therateofdutyinthecaseofkhandsarimolasses,shallbetherateinforceonthedateofreceiptofsuch
molassesinthefactoryoftheprocurerofsuchmolasses.
Explanation.Ifanyexcisablegoodsareusedwithinthefactory,thedateofremovalofsuchgoodsshallmean
thedateonwhichthegoodsareissuedforsuchuse.
[(3)***]
RULE6.Assessmentofduty.Theassesseeshallhimselfassessthedutypayableonanyexcisablegoods:
Providedthatincaseofcigarettes,theSuperintendentorInspectorofCentralExciseshallassessthedutypayable
beforeremovalbytheassessee.
RULE7.Provisionalassessment.(1)Wheretheassesseeisunabletodeterminethevalueofexcisablegoods
ordeterminetherateofdutyapplicablethereto,hemayrequesttheAssistantCommissionerofCentralExciseorthe
DeputyCommissionerofCentralExcise,asthecasemaybe,inwritinggivingreasonsforpaymentofdutyon
provisionalbasisandtheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,
asthecasemaybe,mayorderallowingpaymentofdutyonprovisionalbasisatsuchrateoronsuchvalueasmay
bespecifiedbyhim.
(2)Thepaymentofdutyonprovisionalbasismaybeallowed,iftheassesseeexecutesabondintheform
prescribedbynotificationbytheBoardwithsuchsuretyorsecurityinsuchamountastheAssistantCommissioner
ofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,deemfit,bindingthe
assesseeforpaymentofdifferencebetweentheamountofdutyasmaybefinallyassessedandtheamountofduty
provisionallyassessed.
(3)TheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecase
maybe,shallpassorderforfinalassessment,assoonasmaybe,aftertherelevantinformation,asmayberequired
forfinalizingtheassessment,isavailable,butwithinaperiodnotexceedingsixmonthsfromthedateofthe
communicationoftheorderissuedundersubrule(1):
Providedthattheperiodspecifiedinthissubrulemay,onsufficientcausebeingshownandthereasonstobe
recordedinwriting,beextendedbytheCommissionerofCentralExciseforafurtherperiodnotexceedingsix
monthsandbytheChiefCommissionerofCentralExciseforsuchfurtherperiodashemaydeemfit.
(4)TheassesseeshallbeliabletopayinterestonanyamountpayabletoCentralGovernment,consequenttoorder
forfinalassessmentundersubrule(3),attheratespecifiedbytheCentralGovernmentbynotificationissuedunder
section11AAorsection11ABoftheActfromthefirstdayofthemonthsucceedingthemonthforwhichsuch
amountisdetermined,tillthedateofpaymentthereof.
(5)Wheretheassesseeisentitledtoarefundconsequenttoorderforfinalassessmentundersubrule(3),subject
tosubrule(6),thereshallbepaidaninterestonsuchrefundattheratespecifiedbytheCentralGovernmentby
notificationissuedundersection11BBoftheActfromthefirstdayofthemonthsucceedingthemonthforwhich
suchrefundisdetermined,tillthedateofrefund.
(6)Anyamountofrefunddeterminedundersubrule(3)shallbecreditedtotheFund:
Providedthattheamountofrefund,insteadofbeingcreditedtotheFund,bepaidtotheapplicant,ifsuchamountis
relatableto
(a)thedutyofexcisepaidbythemanufacturer,ifhehadnotpassedontheincidenceofsuchdutytoanyother
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personor
(b)thedutyofexcisebornebythebuyer,ifhehadnotpassedontheincidenceofsuchdutytoanyotherperson.
RULE8.Mannerofpayment.(1)Thedutyonthegoodsremovedfromthefactoryorthewarehouseduringa
monthshallbepaidby[the6thdayofthefollowingmonth,ifthedutyispaidelectronicallythroughinternetbanking
andbythe5thdayofthefollowingmonth,inanyothercase]:

ProvidedthatincaseofgoodsremovedduringthemonthofMarch,thedutyshallbepaidbythe31stdayofMarch
:

Providedfurtherthatwhereanassesseeisavailingoftheexemptionunderanotificationbasedonthevalueof
clearancesinafinancialyear,thedutyongoodsclearedduringacalendarmonthshallbepaidby[the16thdayof
thefollowingmonth,ifthedutyispaidelectronicallythroughinternetbankingandbythe15thdayofthefollowing
month,inanyothercase,]exceptincaseofgoodsremovedduringthemonthofMarchforwhichthedutyshallbe
paidbythe31stdayofMarch.

Providedalsothatanassessee,whohaspaiddutyoffiftylakhsrupeesormore,otherthantheamountofdutypaid
byutilizationofCENVATcredit,intheprecedingfinancialyear,shallthereafter,depositthedutyelectronically
throughinternetbanking.

Explanation.Forthepurposesofthisrule,
(a)thedutyliabilityshallbedeemedtohavebeendischargedonlyiftheamountpayableiscreditedto
theaccountoftheCentralGovernmentbythespecifieddate
(b)iftheassesseedepositsthedutybycheque,thedateofpresentationofthechequeinthebank
designatedbytheCentralBoardofExciseandCustomsforthispurposeshallbedeemedtobethedate
onwhichthedutyhasbeenpaidsubjecttorealizationofthatcheque.

(1A)Notwithstandinganythingcontainedinsubrule(1),thedutyonthegoodsremovedfromthefactoryorthe
warehouse,intheStateofGujarat,duringthesecondfortnightofFebruary,2002andthemonthofMarch,2002shall
bepaidbythe31stMarch,2002:

ProvidedthatwhereanassesseeintheStateofGujaratisavailingoftheexemptionunderanotificationbasedon
thevalueofclearancesinafinancialyear,thedutyongoodsclearedduringthemonthofFebruary,2002shallbe
paidbythe31stMarch,2002.

Explanation.Forremovalofdoubts,itisherebyclarifiedthatthedutyliabilityshallbedeemedtohavebeen
dischargedonlyiftheamountpayableiscreditedtotheaccountoftheCentralGovernmentbythespecifieddate.

(2)Thedutyofexciseshallbedeemedtohavebeenpaidforthepurposesoftheserulesontheexcisablegoods
removedinthemannerprovidedundersubrule(1)andthecreditofsuchdutyallowed,asprovidedbyorunderany
rule.

[(3)Iftheassesseefailstopaytheamountofdutybyduedate,heshallbeliabletopaytheoutstandingamount
alongwithinterestattheratespecifiedbytheCentralGovernmentvidenotificationundersection11ABoftheActon
theoutstandingamount,fortheperiodstartingwiththefirstdayafterduedatetillthedateofactualpaymentofthe
outstandingamount.

[(3A)Iftheassesseedefaultsinpaymentofdutybeyondthirtydaysfromtheduedate,asprescribedinsubrule
(1),thennotwithstandinganythingcontainedinsaidsubrule(1)andsubrule(4)ofrule3ofCENVATCreditRules,
2004,theassesseeshall,payexcisedutyforeachconsignmentatthetimeofremoval,withoututilizingthe
CENVATcredittillthedatetheassesseepaystheoutstandingamountincludinginterestthereonandintheeventof
anyfailure,itshallbedeemedthatsuchgoodshavebeenclearedwithoutpaymentofdutyandtheconsequences
andpenaltiesasprovidedintheserulesshallfollow.

[(4)Theprovisionsofsection11oftheActshallbeapplicableforrecoveryofthedutyasassessedunderrule6and
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theinterestundersubrule(3)inthesamemannerastheyareapplicableforrecoveryofanydutyorothersums
payabletotheCentralGovernment.
Explanation.Forthepurposesofthisrule,theexpressionsdutyordutyofexciseshallalsoincludetheamount
payableintermsoftheCENVATCreditRules,2004.

RULE8A.Mannerofpaymentinrespectofspecifiedgoodsonwhichexcisedutyhasbeenimposedwith
effectfrom1stMarch,2002.(1)Notwithstandinganythingcontainedinrule8,thedutyonthegoods,specifiedin
theAnnexuretothisrule,removedfromthefactoryorthewarehouseduringtheperiodcommencingonandfromthe
1stMarch,2002andendingwithandincludingthe31stMay,2002,shallbepaidbythe15thdayofJune,2002.
Explanation.Forremovalofdoubts,itisherebyclarifiedthatthedutyliabilityshallbedeemedtohavebeen
dischargedonlyiftheamountpayableiscreditedtotheaccountoftheCentralGovernmentbythespecifieddate.
(2)Thedutyofexciseshallbedeemedtohavebeenpaidforthepurposesoftheserulesontheexcisablegoods
removedinthemannerprovidedundersubrule(1)andthecreditofsuchdutyallowed,asprovidedbyorunderany
rule.
(3)Iftheassesseefailstopaytheamountofdutybyduedate,heshallbeliabletopaytheoutstandingamount
alongwithinterestattheratespecifiedbytheCentralGovernmentvidenotificationissuedundersection11ABofthe
Actontheoutstandingamount,fortheperiodstartingwiththefirstdayafterduedatetillthedateofactualpayment
oftheoutstandingamount.
(4)Iftheassesseedefaultsinpaymentofdutybythe15thdayofJune,2002,then,theassesseeshallforfeitthe
facilitytopaytheduesininstalmentsasprovidedundersubrule(1)ofrule8fortheclearancesmadeafterthe1st
dayofJune,2002foraperiodoftwomonths,commencingonandfromthedateofcommunicationoftheorder
passedbytheAssistantCommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthe
casemaybe,inthisregard,ortillsuchdateonwhichtheduesarepaid,whicheverislater,andduringthisperiodthe
assesseeshallberequiredtopayexcisedutyforeachconsignmentbydebitingtotheaccountcurrentandinthe
eventofanyfailuretodoso,itshallbedeemedthatsuchgoodshavebeenclearedwithoutpaymentofdutyandthe
consequencesandpenaltiesasprovidedintheserules,shallfollow.
Annexure
(1)AllgoodsspecifiedatS.Nos.9to50oftheTabletothenotificationoftheGovernmentofIndia,Ministryof
Finance(DepartmentofRevenue)No.10/2002CentralExcise,datedthe1stMarch,2002publishedintheGazette
ofIndiavidenumberG.S.R.131(E),datedthe1stMarch,2002,whichwereexemptfromwholeofthedutyleviable
thereonimmediatelypriorto1stMarch,2002andonwhichdutyhasbecomeleviablewitheffectfrom1stMarch,
2002,attherateof4%advalorem,subjecttotheconditionsspecifiedinthatnotificationor,asthecasemaybe,at
therateof16%advalorem.
(2)GranitefallingunderheadingNo.68.07manufacturedbyunitswhichwouldhavebeeneligibleforexemption
fromdutywhetherinwholeorinpartundernotificationNo.8/2001CentralExciseorNo.9/2001CentralExcise,
datedthe1stMarch,2001,astheyexistedbefore1stMarch,2002andgranitefallingunderheadingNo.68.07
manufacturedbyunitswhichwouldhavebeeneligibleforexemptionwhetherinwholeorinpartifsuchexemption
hadnotbeenwithdrawnunderNotificationNo.8/2002CentralExciseor,asthecasemaybe,underNotificationNo.
9/2002CentralExcise,bothdatedthe1stMarch,2002.
(3)Wovenfabricsofcotton,fallingunderChapter52,whensubjectedtoanyoneormoreofthefollowing
processes,namely:
(a)flanelleteraising
(b)stentering
(c)dampingongreyandbleachedsorts
(d)backfillingongreyandbleachedsorts
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(e)singeing,thatistosay,burningawayofknotsandlooseendsinthefabrics
(f)croppingorbuttacutting
(g)curingorheatsetting
(h)padding,thatistosay,applyingstarchorfattymaterialononeorbothsidesofthefabricor
(i)expanding,
if such fabrics are processed in a factory which does not have the facilities (including plant and equipment) for
carryingoutbleaching,dyeingorprintingoranyoneormoreoftheseprocesseswiththeaidofpowerorsteamand
such fabrics were exempt from whole of the duties leviable thereon under the First Schedule to the Central Excise
TariffAct,1985(5of1986)andtheFirstScheduletotheAdditionalDutiesofExcise(GoodsofSpecialImportance)
Act,1957(58of1957),immediatelypriorto1stMarch,2002andonwhichdutieshavebecomeleviablewith effect
from1stMarch,2002attherateof12%advalorem.
(4)Wovenfabricsofmanmadefibres,fallingunderChapter54orChapter55,whensubjectedtoanyoneormoreof
thefollowingprocesses,namely:
(a)singeing,thatistosay,burningawayofknotsandlooseendsinthefabrics
(b)padding,thatistosay,applicationofnaturalstarchtooneorbothsidesofthefabrics
(c)backfilling,thatistosay,applicationofstarchtoonesideofthefabrics
(d)cropping,thatistosay,cuttingawaymechanicallyoflooseendsfromthefabricsor
(e)theprocessofblowing(steampressing)carriedoutonwovenfabricsofacrylicfibre,
if such fabrics are processed in a factory which does not have the facilities (including plant and equipment) for
carryingoutbleaching,dyeingorprintingoranyoneormoreoftheseprocesseswiththeaidofpowerorsteam,and
such fabrics were exempt from whole of the duties leviable thereon under the First Schedule to the Central Excise
TariffAct,1985(5of1986)andtheFirstScheduletotheAdditionalDutiesofExcise(GoodsofSpecialImportance)
Act,1957(58of1957),immediatelypriorto1stMarch,2002andonwhichdutieshave become leviable with effect
from1stMarch,2002,attherateof12%advalorem.]
RULE9.Registration.(1)Everyperson,whoproduces,manufactures,carriesontrade,holdsprivatestore
roomorwarehouseorotherwiseusesexcisablegoods,shallgetregistered:
Providedthataregistrationobtainedunderrule174oftheCentralExciseRules,1944orrule9oftheCentralExcise
(No.2)Rules,2001shallbedeemedtobeasvalidastheregistrationmadeunderthissubruleforthepurposeof
theserules.
(2)TheBoardmaybynotificationandsubjecttosuchconditionsorlimitationsasmaybespecifiedinsuch
notification,specifypersonorclassofpersonswhomaynotrequiresuchregistration.
(3)Theregistrationundersubrule(1)shallbesubjecttosuchconditions,safeguardsandprocedureasmaybe
specifiedbynotificationbytheBoard.
RULE10.Dailystockaccount.(1)Everyassesseeshallmaintainproperrecords,onadailybasis,inalegible
mannerindicatingtheparticularsregardingdescriptionofthegoodsproducedormanufactured,openingbalance,
quantityproducedormanufactured,inventoryofgoods,quantityremoved,assessablevalue,theamountofduty
payableandparticularsregardingamountofdutyactuallypaid.
(2)Thefirstpageandthelastpageofeachsuchaccountbookshallbedulyauthenticatedbytheproducerorthe
manufacturerorhisauthorisedagent.
(3)Allsuchrecordsshallbepreservedforaperiodoffiveyearsimmediatelyafterthefinancialyeartowhichsuch
recordspertain.
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RULE11.Goodstoberemovedoninvoice.(1)Noexcisablegoodsshallberemovedfromafactoryora
warehouseexceptunderaninvoicesignedbytheownerofthefactoryorhisauthorizedagentandinthecaseof
cigarettes,eachsuchinvoiceshallalsobecountersignedbytheInspectorofCentralExciseortheSuperintendentof
CentralExcisebeforethecigarettesareremovedfromthefactory.
[ProvidedthatamanufacturerofyarnsorfabricsfallingunderChapter50,51,52,53,54,55,58or60orreadymade
garmentsfallingunderChapter61or62ofFirstScheduletotheTariffActmayremovethesaidgoodsundera
proformainvoicesignedbyhimorhisauthorisedagent.Theprovisionsofsubrules(2)to(5)shallapplytothe
proformainvoiceexceptthatthesaidinvoiceshallnotcontainthedetailsofthedutypayable.Themanufacturer
shall,withinfiveworkingdaysfromtheissuanceoftheproformainvoicepreparetheinvoiceintermsofthisrule
aftermakingadjustmentsinrespectofthegoodsrejectedandreturnedbythebuyer.Theproformainvoiceandthe
invoiceissuedintermsofthissubruleshallhavecrossreferencetoeachotherbywayoftheirserialnumbers.]
[Providedfurtherthatthesaidperiodoffiveworkingdays,asreferredtointhefirstproviso,maybeextendeduptoa
periodnotexceedingtwentyonedays,inclusiveofthesaidperiodoffiveworkingdays,bytheCommissionerof
CentralExcise,onreceiptofarequestfromthesaidmanufacturer.]
[(2)Theinvoiceshallbeseriallynumberedand[shallcontaintheregistrationnumber,addressoftheconcerned
CentralExciseDivision,]nameoftheconsignee,description,classification,timeanddateofremoval,modeof
transportandvehicleregistrationnumber,rateofduty,quantityandvalue,ofgoodsandthedutypayablethereon.]
[ProvidedthatincaseofaproprietaryconcernorabusinessownedbyHinduUndividedFamily,thenameofthe
proprietororHinduUndividedFamily,asthecasemaybe,shallalsobementionedintheinvoice.]
(3)Theinvoiceshallbepreparedintriplicateinthefollowingmanner,namely:
(i)theoriginalcopybeingmarkedasORIGINALFORBUYER
(ii)theduplicatecopybeingmarkedasDUPLICATEFORTRANSPORTER
(iii)thetriplicatecopybeingmarkedasTRIPLICATEFORASSESSEE.
(4)Onlyonecopyofinvoicebookshallbeinuseatatime,unlessotherwiseallowedbytheAssistant
CommissionerofCentralExcise,ortheDeputyCommissionerofCentralExcise,asthecasemaybe,inthespecial
factsandcircumstancesofeachcase.
(5)TheownerorworkingpartnerortheManagingDirectorortheCompanySecretaryoranypersondulyauthorised
forthispurposeshallauthenticateeachfoiloftheinvoicebook,beforebeingbroughtintouse.
(6)Beforemakinguseoftheinvoicebook,theserialnumbersofthesameshallbeintimatedtotheSuperintendent
ofCentralExcisehavingjurisdiction.
(7)Theprovisionsofthisruleshallapplymutatismutandistogoodssuppliedbyafirststagedealerorasecond
stagedealer:
[Providedthatincaseofthefirststagedealerreceivingimportedgoodsunderaninvoicebearinganindicationthat
thecreditofadditionaldutyofcustomsleviedonthesaidgoodsundersubsection(5)ofsection3oftheCustoms
TariffAct,1975(51of1975)shallnotbeadmissible,thesaiddealershallontheresaleofthesaidimportedgoods,
indicateontheinvoiceissuedbyhimthatnocreditoftheadditionaldutyleviedundersubsection(5)ofsection3of
theCustomsTariffAct,1975shallbeadmissible
Providedfurtherthatincaseofthesecondstagedealerreceivingimportedgoodsunderaninvoicebearingan
indicationthatthecreditofadditionaldutyofcustomsleviedonthesaidgoodsundersubsection(5)ofsection3of
theCustomsTariffAct,1975(51of1975)shallnotbeadmissible,thesaiddealershallontheresaleofsuch
importedgoods,indicateontheinvoiceissuedbyhimthatnocreditoftheadditionaldutyleviedundersubsection
(5)ofsection3oftheCustomsTariffAct,1975shallbeadmissible.]
Explanation.Forthepurposesofthisrule,firststagedealerandsecondstagedealershallhavethemeanings
assignedtotheminCENVATCreditRules,2002.
RULE12.Filingofreturn.[(1)]EveryassesseeshallsubmittotheSuperintendentofCentralExciseamonthly
returnintheformspecifiedbynotificationbytheBoard,ofproductionandremovalofgoodsandotherrelevant
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particulars,withintendaysafterthecloseofthemonthtowhichthereturnrelates:
[Providedthatanassessee,manufacturingpanmasalafallingundertariffitem21069020orpanmasalacontaining
tobaccofallingundertariffitem24039990,shallalsofile,alongwiththereturn,forthemonthtowhichthesaid
returnrelates,astatementsummarizing,
(i)thepurchaseinvoicesforthemonthwiththenamesandaddressesofthesuppliersofbetelnut,tobaccoand
packingmaterialalongwiththequantityofthesaidgoodspurchasedand
(ii)thesalesinvoicesforthemonthwiththenamesandaddressesofthebuyers,description,quantityandvalueof
goodssoldbytheassessee.
Explanation.Whenthegoodsarenotsoldfromthefactory,theaddressofthepremisestowhichthegoodsare
dispatchedfromthefactoryshallalsobeprovided:]
[Providedfurtherthatwhereanassesseeis,
(a)availingtheexemptionunderanotificationbasedonvalueofclearancesinafinancialyearor
(b)manufacturingprocessedyarn,unprocessedfabricsfallingunderChapter50,51,52,53,54,55,58or60of
FirstScheduletotheTariffActor
(c)manufacturingreadymadegarmentsfallingunderChapter61or62ofFirstScheduletotheTariffAct,which
priorto1stdayofApril,2003wereeligibleforanexemptionunderanotificationbasedonvalueofclearancesina
financialyear,
heshallfileaquarterlyreturnintheformspecifiedbynotificationbytheBoard,ofproductionandremovalofgoods
andotherrelevantparticulars,withintwentydaysafterthecloseofthequartertowhichthereturnrelates.]
[Providedalsothat,whereanassesseeisavailingtheexemptionnotificationoftheGovernmentofIndia,Ministryof
Finance(DepartmentofRevenue)No.49/2003CentralExcise,datedthe10thJune,2003videnumberG.S.R.
471(E),publishedintheGazetteofIndia,Extraordinary,PartII,section3,subsection(i)datedthe10thJune,2003
orNo.50/2003CentralExcise,datedthe10thJune,2003videnumberG.S.R.472(E),publishedintheGazetteof
India,Extraordinary,PartII,section3,subsection(i),datedthe10thJune,2003,heshallfileaquarterlyreturnwith
thejurisdictionalCommissionerofCentralExcise,intheformspecifiedbynotificationbytheBoard,ofproduction
andremovalofgoodsandotherrelevantparticulars,withintwentydaysafterthecloseofthequartertowhichthe
returnrelatesandincaseofgoodsproducedandremovedduringthequarterendingonthe31stdayofDecember,
2007,suchreturnshallbesubmittedbythe20thFebruary,2008.]
[(2)(a)Notwithstandinganythingcontaininginsubrule(1),everyassesseeshallsubmittotheSuperintendentof
CentralExcise,anAnnualFinancialInformationStatementfortheprecedingfinancialyeartowhichthestatement
relatesintheformspecifiedbynotificationbytheBoardby30thdayofNovemberofthesucceedingyear.
(b)TheCentralGovernmentmay,bynotification,andsubjecttosuchconditionsorlimitationsasmaybespecified
insuchnotification,specifyassesseeorclassofassesseeswhomaynotrequiretosubmitsuchanAnnual
FinancialInformationStatement.]
[(3)Theproperofficermayonthebasisofinformationcontainedinthereturnfiledbytheassesseeundersubrule
(1),andaftersuchfurtherenquiryashemayconsidernecessary,scrutinizethecorrectnessofthedutyassessedby
theassesseeonthegoodsremoved,inthemannertobeprescribedbytheBoard.
(4)Everyassesseeshallmakeavailabletotheproperofficerallthedocumentsandrecordsforverificationasand
whenrequiredbysuchofficer.]
RULE12A.Filingofreturninrespectofspecifiedgoodsonwhichexcisedutyhasbeenimposedonand
fromthe1stMarch,2002.Notwithstandinganythingcontainedinrule12,everyassesseeshallsubmit,in
respectofgoodsspecifiedintheAnnexuretorule8A,totheSuperintendentofCentralExciseareturnforthe
monthsofMarch,AprilandMay,2002,intheformspecifiedbynotificationbytheBoard,ofproductionandremoval
ofthesaidgoodsandotherrelevantparticulars,bythe10thdayofJune,2002.]
RULE12AA.Jobworkinarticleofjewellery.(1)Notwithstandinganythingcontainedintheserules,every
person(notbeinganexportorientedunitoraunitlocatedinspecialeconomiczone)whogetsarticleofjewelleryfall
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ingunderheading7113oftheFirstScheduletotheCentralExciseTariffAct,1985(5of1986)(hereinafterreferredto
astheTariffAct),producedormanufacturedonhisbehalf,onjobworkbasis,(hereinafterreferredtoasthesaid
person)shallobtainregistration,maintainaccounts,paydutyleviableonsuchgoodsandcomplywithallthe
relevantprovisionsoftheserules,asifheisanassessee:
Providedthatthejobworkermay,athisoption,agreetoobtainregistration,maintainaccounts,paytheduty
leviableonsuchgoods,preparetheinvoiceandcomplywiththeotherprovisionsoftheserulesandinsuchacase
theprovisionsoftheserulesshallnotapplytothesaidperson.
(2)Ifthesaidpersondesiresclearanceofexcisablegoodsforhomeconsumptionorforexportsfromthepremises
ofthejobworker,heshallpaydutyonsuchexcisablegoodsandprepareaninvoice,inthemannerreferredtoin
rules8and11respectivelyexceptformentioningthedateandtimeofremovalofgoodsonsuchinvoice.
(3)Theoriginalandtheduplicatecopyoftheinvoicesopreparedshallbesentbyhimtothejobworkerfromwhose
premisestheexcisablegoodsaftercompletionofjobworkareintendedtobecleared,beforethegoodsarecleared
fromthepremisesofthejobworker.
(4)Thejobworkershallfilluptheparticularsofdateandtimeofremovalofgoodsbeforetheclearanceofgoods
andaftersuchclearancethejobworkershallintimatetothesaidperson,thedateandtimeoftheclearanceofgoods
forcompletionoftheparticularsbythesaidpersoninthetriplicatecopyoftheinvoice.
(5)Thesaidpersonmaysupplyorcausetosupplytoajobworker,thefollowinggoods,namely:
(a)inputsinrespectofwhichhemayormaynothaveavailedCENVATcreditintermsoftheCENVATCredit
Rules,2004,withoutreversalofthecreditthereonor
(b)goodsmanufacturedinthefactoryofthesaidpersonwithoutpaymentofduty
underachallan,consignmentnoteoranyotherdocument(hereinreferredtoasdocument)withsuchinformationas
specifiedinsubrule(2)ofrule11oftheCentralExciseRules,2002,dulysignedbyhimorhisauthorisedagent.
(6)Theresponsibilityinrespectofaccountabilityofthegoods,referredtoinsubrule(5)shalllieonthesaid
person.
(7)Notwithstandinganythingcontainedintheserules,thejobworkershallnotberequiredtogethimselfregistered
orshallnotberequiredtomaintainanyrecordevidencingtheprocessesundertakenforthesolepurposesof
undertakingjobworkundertheserulesunlesshehasexercisedhisoptionintermsoftheprovisotosubrule(1).
(8)Thejobworker,withorwithoutcompletingthejobworkmay,
(i)returnthegoodswithoutpaymentofdutytothesaidpersonor
(ii)clearthegoodsforhomeconsumptionorforexports
subjecttoreceiptofaninvoicefromthesaidperson,asmentionedinsubrule(4).
(9)Thejobworkershallclearthegoodsafterfillingininvoicethetimeanddateofremovalandauthenticationof
suchdetails.Therateofdutyonsuchgoodsshallbetherateinforceondateofremovalofsuchgoodsfromthe
premisesofthejobworkerandnoexcisablegoodsshallberemovedexceptundertheinvoice.
Explanation1.Forthepurposeofthisrule,jobworkermeansapersonengagedinmanufactureorprocessingon
behalfandundertheinstructionsofthesaidpersonfromanyinputsorgoodssuppliedbythesaidpersonorbyany
otherpersonauthorizedbythesaidperson,soastocompleteapartorwholeoftheprocessresultingultimatelyin
manufactureofarticlesofjewelleryfallingunderheading7113oftheFirstScheduletotheCentralExciseTariffAct,
1985,andthetermjobworkshallbeconstruedaccordingly.
Explanation2.Forthepurposesofthisrule,articleofjewelleryshallmeanarticlesofjewelleryonwhichbrand
nameortradenameisindeliblyaffixedorembossedonitself.
Explanation3.Forthepurposesofthisnotification,brandnameortradenamemeansabrandnameortrade
name,whetherregisteredornot,thatistosay,anameoramark,suchasasymbol,monogram,label,signatureor
inventedwordsoranywritingwhichisusedinrelationtoaproduct,forthepurposeofindicating,orsoastoindicate,
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aconnectioninthecourseoftradebetweentheproductandsomepersonusingsuchnameormarkwithorwithout
anyindicationoftheidentityofthatperson.
Explanation4.Fortheremovalofdoubts,itisherebyclarifiedthatifanygoodsorpartthereofislost,destroyed,
foundshortatanytimebeforetheclearanceofarticlesofjewelleryfallingunderheading7113oftheFirstSchedule
totheTariffActorwaste,byproductsorlikegoodsarisingduringthecourseofmanufactureofsuchgoods,thesaid
personshallbeliabletopaydutythereonasifsuchgoodswereclearedforhomeconsumption.]
RULE[12B.***]
RULE12BB.Procedureandfacilitiesforlargetaxpayer.Notwithstandinganythingcontainedintheserules,the
followingprocedureshallapplytoalargetaxpayer.(1)Alargetaxpayermayremoveexcisablegoods,except
motorspirit,commonlyknownaspetrol,highspeeddieselandlightdieseloil(hereinafterreferredtoasthe
intermediategoods),withoutpaymentofdutiesofexcise,underthecoverofatransferchallanorinvoice,fromany
ofhisregisteredpremises,(hereinafterreferredtoasthesenderpremises)wheresuchgoodsareproduced,
manufacturedorwarehousedtohisotherregisteredpremises,otherthanapremisesofafirstorsecondstagedealer
(hereinafterreferredtoastherecipientpremises),forfurtheruseinthemanufactureorproductionofsuchother
excisablegoods(hereinafterreferredtoasthesubjectgoods)inrecipientpremisessubjecttoconditionthat
(a)thesubjectgoodsaremanufacturedorproducedusingthesaidintermediategoodsandclearedonpaymentof
appropriatedutiesofexciseleviablethereonwithinaperiodofsixmonths,fromthedateofreceiptofthe
intermediategoodsintherecipientpremisesor
(b)thesubjectgoodsaremanufacturedorproducedusingthesaidintermediategoodsandexportedoutofIndia,
underbondorletterofundertakingwithinaperiodofsixmonths,fromthedateofreceiptoftheintermediategoodsin
therecipientpremises,
andthatanyotherconditionsprescribedbytheCommissionerofCentralExcise,largetaxpayerunitinthisregard
aresatisfied.
Explanation1.Thetransferchallanorinvoiceshallbeseriallynumberedandshallcontaintheregistration
number,name,addressofthelargetaxpayer,description,classification,timeanddateofremoval,modeof
transportandvehicleregistrationnumber,quantityofthegoodsandregistrationnumberandnameoftheconsignee.
Providedthatifthesubjectgoodsmanufacturedorproducedusingthesaidintermediategoodsarenotclearedon
paymentofappropriatedutiesofexciseleviablethereonorarenotexportedoutofIndiawithinthesaidperiodofsix
months,dutiesofexcisepayableonsuchintermediategoodsshallbepaidbytherecipientpremiseswithinterestin
themannerandratespecifiedundersection11ABoftheAct.
Illustration.Excisedutyispayableonintermediategoods,namely,electronicsgoods,manufacturedbyfactoryA
whichareremovedwithoutpaymentofdutiesofexciseforuseinthemanufactureofsubjectgoods,namely,
machines,infactoryBofthelargetaxpayer.Incasesuchmachinesarenotexportedorareremovedwithout
paymentofdutiesofexcise,thenfactoryBshallpaydutiesofexcisepayableontheelectronicgoodssocleared
alongwithinterest:
Providedfurtherthatifanydutyofexciseispayableonsuchintermediategoodsandifthesaiddutyisnotpayable
onsuchsubjectgoods,thesaiddutyofexciseasequivalenttothetotalamountpayableonsuchintermediate
goodsalongwithinterestundersection11ABoftheActshallbepaidbytherecipientpremises.
Illustration.NationalCalamityContingentdutyispayableonintermediategoodsnamely,polyesteryarn
manufacturedbyfactoryA.Suchyarnisremovedwithoutpaymentofdutyofexciseforuseinthemanufactureof
subjectgoods,namely,greyfabricsinfactoryBofalargetaxpayer,(onwhichsuchNationalCalamityContingent
dutyisnotpayable),thenfactoryBshallpayanamountequivalenttotheNationalCalamityContingentdutythat
wouldhavebeenpayableonthepolyesteryarnalongwithinterestundersection11ABoftheAct.
Explanation2.Thedutypayableunderthefirstandsecondprovisosshallbethedutypayableonthedateand
timeofremovaloftheintermediategoodsfromthesenderspremises:
Providedalsothatnothingcontainedinthissubruleshallbeapplicableiftherecipientpremisesisavailingfollowing
notificationsofGovernmentofIndiaintheMinistryofFinance(DepartmentofRevenue),
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(i)No.32/99CentralExcise,datedthe8thJuly,1999[G.S.R.508(E),dated8thJuly,1999]
(ii)No.33/99CentralExcise,datedthe8thJuly,1999[G.S.R.509(E),dated8thJuly,1999]
(iii)No.39/2001CentralExcise,datedthe31stJuly,2001[G.S.R.565(E),datedthe31stJuly,2001]
(iv)No.56/2002CentralExcise,datedthe14thNovember,2002[G.S.R.764(E),datedthe14th
November,2002]
(v)No.57/2002CentralExcise,dated14thNovember,2002[G.S.R.765(E),datedthe14th
November,2002]
(vi)No.56/2003CentralExcise,datedthe25thJune,2003[G.S.R.513(E),datedthe25thJune,2003]
and
(vii)No.71/2003CentralExcise,datedthe9thSeptember,2003[G.S.R.717(E),datedthe9th
September,2003]:
Providedalsothatnothingcontainedinthissubruleshallbeapplicabletoaexportorientedunitoraunitlocatedin
aElectronicHardwareTechnologyParkorSoftwareTechnologyPark.
Explanation3.Ifalargetaxpayerfailstopayanyamountdueintermsofthefirstandsecondprovisos,itshall
berecoveredalongwithinterestinthesamemannerasprovidedundersection11Aandsection11ABrespectively
oftheAct.
(2)Wherearegisteredpremisesofalargetaxpayermanufacturingexcisablegoodshaspaidtothecreditof
CentralGovernmentanydutyofexciseinexcessofdutyofexcisepayableonaccountofarithmeticalerror,thesaid
largetaxpayermayadjusttheexcessdutysopaidbyhim,againsthisdutyliabilityforthesubsequentperiod
subjecttothelimitationsprescribedunderclause(b)ofsubrule(7)ofrule3oftheCENVATCreditRules,2004:
Providedthatsuchadjustmentshallbeadmissibleonlyifthesaidregisteredpremiseshasnotpassedonthe
incidenceofsuchexcessdutysopaidtoanyotherperson,andtheconsigneedoesnotavailcreditofsuchduty
underthesaidCENVATCreditRules,2004.
(3)AnynoticeissuedbutnotadjudgedbyanyoftheCentralExciseofficeradministeringtheActorrulesmade
thereunderimmediatelybeforethedateofgrantofacceptancebytheChiefCommissionerofCentralExcise,large
taxpayerunit,shallbedeemedtohavebeenissuedbyCentralExciseofficersofthesaidUnit.
(4)Alargetaxpayershallsubmitthemonthlyreturns,asprescribedundertheserules,foreachoftheregistered
premises.
(5)Alargetaxpayer,ondemand,mayberequiredtomakeavailablethefinancial,production,storesandCENVAT
creditrecordsinelectronicmedia,suchas,compactdiscortapeforthepurposesofcarryingoutanyscrutinyand
verificationasmaybenecessary.
(6)Alargetaxpayermay,withintimationofatleastthirtydaysinadvance,optouttobealargetaxpayerfromthe
firstdayofthefollowingfinancialyear.
(7)Provisionsoftheserules,insofarastheyarenotinconsistentwiththeprovisionsofthisruleshallmutatis
mutandisapplyincaseofalargetaxpayer.]
RULE12C.Maintenanceofrecordsandpaymentofdutybytheindependentweaverofunprocessedfabrics.
AnindependentweaverofunprocessedfabricsfallingunderChapter50,51,52,53,54,55,58or60oftheFirst
ScheduletotheTariffAct,may,athisoption,authorizeanotherperson,onhisbehalf,tomaintainaccounts,pay
duty,prepareinvoiceandcomplywithanyoftheprovisionsoftheserulesexceptthatofrule9:

Providedthatprimaryresponsibilitytocomplywiththeprovisionsoftheserulesshallliewiththesaidindependent
weaverandincaseofshortpaymentornonpaymentofdutyonsuchunprocessedfabrics,consequencesand
penaltiesshallapplybothtothesaidindependentweaverandhisauthorizedagent.
Explanation.Independentweavermeansaweaverwhoworksonhisown,purchasestheyarnhimselfandsells
thegreyfabricsmanufacturedbyhim.]
RULE12CC.Powertoimposerestrictionsincertaintypesofcases.Notwithstandinganythingcontainedin
theserules,wheretheCentralGovernment,havingregardtotheextentofevasionofduty,natureandtypeof
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offencesorsuchotherfactorsasmayberelevant,isoftheopinionthatinordertopreventevasionof,anddefaultin
paymentof,exciseduty,itisnecessaryinthepublicinteresttoprovideforcertainmeasuresincludingrestrictions
onamanufacturer,firststageandsecondstagedealeroranexporter,maybyanotificationintheOfficialGazette,
specifynatureofrestrictionsincludingsuspensionofregistrationincaseofadealer,typesoffacilitiestobe
withdrawnandprocedureforissueofsuchorderbyanofficerauthorizedbytheBoard.]
RULE[13.***]
RULE[13A.***]
RULE[14.***]
RULE15.Specialprocedureforpaymentofduty.(1)TheCentralGovernmentmay,bynotification,specify
thegoodsinrespectofwhichanassesseeshallhavetheoptiontopaythedutyofexciseonthebasisofsuch
factorsasmayberelevanttoproductionofsuchgoodsandatsuchrateasmaybespecifiedinthesaidnotification,
subjecttosuchlimitationsandconditions,includingthoserelatingtointerestorpenalty,asmaybespecifiedinsuch
notification.
(2)TheCentralGovernmentmayalsospecifybynotificationthemannerofmakinganapplicationforavailingofthe
specialprocedureforpaymentofduty,theabatement,ifany,thatmaybeallowedonaccountofclosureofafactory
duringanyperiod,andanyothermatterincidentalthereto.
RULE16.Creditofdutyongoodsbroughttothefactory.(1)Whereanygoodsonwhichdutyhadbeenpaid
atthetimeofremovalthereofarebroughttoanyfactoryforbeingremade,refined,reconditionedorforanyother
reason,theassesseeshallstatetheparticularsofsuchreceiptinhisrecordsandshallbeentitledtotakeCENVAT
creditofthedutypaidasifsuchgoodsarereceivedasinputsundertheCENVATCreditRules,2002andutilisethis
creditaccordingtothesaidrules.
(2)Iftheprocesstowhichthegoodsaresubjectedbeforebeingremoveddoesnotamounttomanufacture,the
manufacturershallpayanamountequaltotheCENVATcredittakenundersubrule(1)andinanyothercasethe
manufacturershallpaydutyongoodsreceivedundersubrule(1)attherateapplicableonthedateofremovaland
onthevaluedeterminedundersubsection(2)ofsection3orsection4orsection4AoftheAct,asthecasemay
be.
[Explanation.TheamountpaidunderthissubruleshallbeallowedasCENVATcreditasifitwasadutypaidby
themanufacturerwhoremovesthegoods.]
(3)Ifthereisanydifficultyinfollowingtheprovisionsofsubrule(1)andsubrule(2),theassesseemayreceivethe
goodsforbeingremade,refined,reconditionedorforanyotherreasonandmayremovethegoodssubsequently
subjecttosuchconditionsasmaybespecifiedbytheCommissioner.
RULE[16A.Removalofgoodsforjobwork,etc.Anyinputsreceivedinafactorymayberemovedassuchor
afterbeingpartiallyprocessedtoajobworkerforfurtherprocessing,testing,repair,reconditioningoranyother
purposesubjecttothefulfilmentofconditionsspecifiedinthisbehalfbytheCommissionerofCentralExcisehaving
jurisdiction.]
RULE[16B.Specialprocedureforremovalofsemifinishedgoodsforcertainpurposes.The
CommissionerofCentralExcisemaybyspecialorderandsubjecttoconditionsasmaybespecifiedbythe
CommissionerofCentralExcise,permitamanufacturertoremoveexcisablegoodswhichareinthenatureofsemi
finishedgoods,forcarryingoutcertainmanufacturingprocesses,tosomeotherpremisesandtobringbacksuch
goodstohisfactory,withoutpaymentofduty,ortosomeotherregisteredpremisesandallowthesegoodstobe
removedonpaymentofdutyorwithoutpaymentofdutyforexportfromsuchotherregisteredpremises.]
RULE[16C.Specialprocedureforremovalofexcisablegoodsforcarryingoutcertainprocesses.The
CommissionerofCentralExcisemay,byspecialorderandsubjecttosuchconditionsasmaybespecifiedbyhim,
permitamanufacturertoremoveexcisablegoodsmanufacturedinhisfactory,withoutpaymentofduty,forcarrying
outtestsoranyotherprocessnotamountingtomanufacture,toanyotherpremises,whetherornotregistered,and
aftercarryingoutsuchtestsoranysuchotherprocessmayallow,
(a)bringingbacksuchgoodstothesaidfactorywithoutpaymentofduty,forsubsequentclearanceforhome
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consumptionorexport,asthecasemaybe,or
(b)removalofsuchgoodsfromthesaidotherpremises,forhomeconsumptiononpaymentofdutyleviable
thereonorwithoutpaymentofdutyforexport,asthecasemaybe:
Providedthatthisruleshallnotapplytothegoodsknownasprototypeswhicharesentoutfortrialordevelopment
test.]
RULE[17.RemovalofgoodsbyaHundredpercent.ExportOrientedUndertakingforDomesticTariffArea.]
(1)Where any goods are removed from a hundred per cent. exportoriented undertaking to domestic tariff
area, such removal shall be made under an invoice by following the procedure specified in rule 11, and the duty
leviableonsuchgoodsshallbepaidbyutilizingtheCENVATcreditorbycreditingthedutypayabletotheaccount
oftheCentralGovernmentinthemannerspecifiedinrule8.
(2)TheunitshallmaintainintheformspecifiedbynotificationbytheBoardappropriateaccountrelatingto
production,descriptionofgoods,quantityremoved,andthedutypaid.
[(3)Theunitshallsubmitamonthlyreturn,intheformspecified,bynotification,bytheBoard,totheSuperintendent
ofCentralExcise,withintendaysfromthecloseofthemonthtowhichthereturnrelates,inrespectofexcisable
goodsmanufacturedin,andreceiptofinputsandcapitalgoodsin,theunit.]
(4)Theproperofficermayonthebasisofinformationcontainedinthereturnfiledbytheunitundersubrule(3),and
aftersuchfurtherenquiryashemayconsidernecessary,scrutinisethecorrectnessofthedutyassessedbythe
assesseeonthegoodsremoved,inthemannertobeprescribedbytheBoard.

(5)Everyassesseeshallmakeavailabletotheproperofficerallthedocumentsandrecordsforverificationasand
whenrequiredbysuchofficer.
RULE18.Rebateofduty.Whereanygoodsareexported,theCentralGovernmentmay,bynotification,grant
rebateofdutypaidonsuchexcisablegoodsordutypaidonmaterialsusedinthemanufactureorprocessingofsuch
goodsandtherebateshallbesubjecttosuchconditionsorlimitations,ifany,andfulfilmentofsuchprocedure,as
maybespecifiedinthenotification.
Explanation.Exportincludesgoodsshippedasprovisionorstoresforuseonboardashipproceedingtoa
foreignportorsuppliedtoaforeigngoingaircraft.
RULE19.Exportwithoutpaymentofduty.(1)Anyexcisablegoodsmaybeexportedwithoutpaymentofduty
fromafactoryoftheproducerorthemanufacturerorthewarehouseoranyotherpremises,asmaybeapprovedby
theCommissioner.
(2)Anymaterialmayberemovedwithoutpaymentofdutyfromafactoryoftheproducerorthemanufacturerorthe
warehouseoranyotherpremises,foruseinthemanufactureorprocessingofgoodswhichareexported,asmaybe
approvedbytheCommissioner.
(3)Theexportundersubrule(1)orsubrule(2)shallbesubjecttosuchconditions,safeguardsandprocedureas
maybespecifiedbynotificationbytheBoard.
RULE20.Warehousingprovisions.(1)TheCentralGovernmentmaybynotification,extendthefacilityof
removalofanyexcisablegoodsfromthefactoryofproductiontoawarehouse,orfromonewarehousetoanother
warehousewithoutpaymentofduty.
(2)Thefacilityundersubrule(1)shallbeavailablesubjecttosuchconditions,includingpenaltyandinterest,
limitations,includinglimitationwithrespecttotheperiodforwhichthegoodsmayremaininthewarehouse,and
safeguardsandprocedure,includinginthemattersrelatingtodispatch,movement,receipt,accountalanddisposal
ofsuchgoods,asmaybespecifiedbytheBoard.
(3)Theresponsibilityforpaymentofdutyonthegoodsthatareremovedfromthefactoryofproductiontoa
warehouseorfromonewarehousetoanotherwarehouseshallbeupontheconsignee.

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(4)Ifthegoodsdispatchedforwarehousingorrewarehousingarenotreceivedinthewarehouse,theresponsibility
forpaymentofdutyshallbeupontheconsignor.
RULE21.Remissionofduty.WhereitisshowntothesatisfactionoftheCommissionerthatgoodshavebeen
lostordestroyedbynaturalcausesorbyunavoidableaccidentorareclaimedbythemanufacturerasunfitfor
consumptionorformarketing,atanytimebeforeremoval,hemayremitthedutypayableonsuchgoods,subjectto
suchconditionsasmaybeimposedbyhimbyorderinwriting:
Providedthatwheresuchdutydoesnotexceed[tenthousandrupees,]theprovisionsofthisruleshallhaveeffectas
iffortheexpressionCommissioner,theexpressionSuperintendentofCentralExcisehasbeensubstituted:
Providedfurtherthatwheresuchdutyexceeds[tenthousandrupees]butdoesnotexceed[onelakhrupees],the
provisionsofthisruleshallhaveeffectasiffortheexpressionCommissioner,theexpressionAssistant
CommissionerofCentralExciseortheDeputyCommissionerofCentralExcise,asthecasemaybe,hasbeen
substituted:
Providedalsothatwheresuchdutyexceeds[onelakhrupees]butdoesnotexceed[fivelakhruppes],the
provisionsofthisruleshallhaveeffectasiffortheexpressionCommissioner,theexpressionJointCommissioner
ofCentralExciseorAdditionalCommissionerofCentralExcise,asthecasemaybe,hasbeensubstituted.
RULE22.Accesstoaregisteredpremises.(1)AnofficerempoweredbytheCommissionerinthisbehalfshall
haveaccesstoanypremisesregisteredundertheserulesforthepurposeofcarryingoutanyscrutiny,verification
andchecksasmaybenecessarytosafeguardtheinterestofrevenue.
[(2)Everyassessee,andfirststageandsecondstagedealershallfurnishtotheofficerempoweredundersubrule
(1),alistinduplicate,of
(i)alltherecordspreparedandmaintainedforaccountingoftransactioninregardtoreceipt,purchase,
manufacture,storage,salesordeliveryofthegoodsincludinginputsandcapitalgoods,asthecasemaybe
(ii)alltherecordspreparedandmaintainedforaccountingoftransactioninregardtopaymentforinputservices
andtheirreceiptorprocurementand
(iii)allthefinancialrecordsandstatements(includingtrialbalanceoritsequivalent).]
(3)[Everyassessee,andfirststageandsecondstagedealer]shall,ondemandmakeavailabletotheofficer
empoweredundersubrule(1)ortheauditpartydeputedbytheCommissionerortheComptrollerandAuditorGeneral
ofIndia,
(i)therecordsmaintainedorpreparedbyhimintermsofsubrule(2)
(ii)thecostauditreports,ifany,undersection233BoftheCompaniesAct,1956(1of1956)and
(iii)theIncometaxauditreport,ifany,undersection44ABoftheIncometaxAct,1961(43of1961),
forthescrutinyoftheofficerorauditparty,asthecasemaybe.
[Explanation.Forthepurposesofthisrule,firststagedealerandsecondstagedealershallhavethemeanings
assignedtotheminCENVATCreditRules,2004.]
RULE23.Powertostopandsearch.AnyCentralExciseOfficer,maysearchanyconveyancecarrying
excisablegoodsinrespectofwhichhehasreasontobelievethatthegoodsarebeingcarriedwiththeintentionof
evadingduty.
RULE24.Powertodetainorseizegoods.IfaCentralExciseOfficer,hasreasontobelievethatanygoods,
whichareliabletoexcisedutybutnodutyhasbeenpaidthereonorthesaidgoodswereremovedwiththeintention
ofevadingthedutypayablethereon,theCentralExciseOfficermaydetainorseizesuchgoods.
RULE25.Confiscationandpenalty.(1)Subjecttotheprovisionsofsection11ACoftheAct,ifanyproducer,
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manufacturer,registeredpersonofawarehouseoraregistereddealer,
(a)removesanyexcisablegoodsincontraventionofanyoftheprovisionsoftheserulesorthenotificationsissued
undertheserulesor
(b)doesnotaccountforanyexcisablegoodsproducedormanufacturedorstoredbyhimor
(c)engagesinthemanufacture,productionorstorageofanyexcisablegoodswithouthavingappliedforthe
registrationcertificaterequiredundersection6oftheActor
(d)contravenesanyoftheprovisionsoftheserulesorthenotificationsissuedundertheseruleswithintentto
evadepaymentofduty,
then, all such goods shall be liable to confiscation and the producer or manufacturer or registered person of the
warehouse or a registered dealer, as the case may be, shall be liable to a penalty not exceeding the duty on the
excisablegoodsinrespectofwhichanycontraventionofthenaturereferredtoinclause(a)orclause (b) or clause
(c)orclause(d)hasbeencommitted,or[rupeestwothousand],whicheverisgreater.
(2)Anorderundersubrule(1)shallbeissuedbytheCentralExciseOfficer,followingtheprinciplesofnatural
justice.
RULE26.Penaltyforcertainoffences.[(1)]Anypersonwhoacquirespossessionof,orisinanyway
concernedintransporting,removing,depositing,keeping,concealing,sellingorpurchasing,orinanyothermanner
dealswith,anyexcisablegoodswhichheknowsorhasreasontobelieveareliabletoconfiscationundertheActor
theserules,shallbeliabletoapenaltynotexceedingthedutyonsuchgoodsor*[twothousandrupees],whichever
isgreater.
[(2)Anyperson,whoissues
(i)anexcisedutyinvoicewithoutdeliveryofthegoodsspecifiedthereinorabetsinmakingsuchinvoiceor
(ii)anyotherdocumentorabetsinmakingsuchdocument,onthebasisofwhichtheuserofsaidinvoiceor
documentislikelytotakeorhastakenanyineligiblebenefitundertheActortherulesmadethereunderlikeclaiming
ofCENVATcreditundertheCENVATCreditRules,2004orrefund,shallbeliabletoapenaltynotexceedingthe
amountofsuchbenefitorfivethousandrupees,whicheverisgreater.]
RULE27.Generalpenalty.Abreachoftheserulesshall,wherenootherpenaltyisprovidedhereinorintheAct,
bepunishablewithapenaltywhichmayextendtofivethousandrupeesandwithconfiscationofthegoodsinrespect
ofwhichtheoffenceiscommitted.
RULE28.ConfiscatedpropertytovestinCentralGovernment.(1)Whenanygoodsareconfiscatedunder
theserules,suchthingshallthereuponvestintheCentralGovernment.
(2)TheCentralExciseOfficeradjudgingconfiscationshalltakeandholdpossessionofthethingsconfiscated,and
everyOfficerofPolice,ontherequisitionofsuchCentralExciseOfficer,shallassisthimintakingandholdingsuch
possession.
RULE29.Disposalofconfiscatedgoods.Confiscatedgoodsinrespectofwhichtheoptionofpayingafinein
lieuofconfiscationhasnotbeenexercised,shallbesold,destroyedorotherwisedisposedofinsuchmannerasthe
Commissionermaydirect.
RULE30.Storagechargesinrespectofgoodsconfiscatedandredeemed.Iftheownerofthegoods,the
confiscationofwhichhasbeenadjudged,exerciseshisoptiontopayfineinlieuofconfiscation,hemayberequired
topaysuchstoragechargesasmaybedeterminedbytheadjudicatingofficer.
RULE31.Powertoissuesupplementaryinstructions.(1)TheBoardortheChiefCommissionerorthe
Commissioner,mayissuewritteninstructionsprovidingforanyincidentalorsupplementalmatters,consistentwith
theprovisionsoftheActandtheserules.
RULE[32.Restrictionsonremovalofgoods.***]
http://www.cbec.gov.in/excise/cxrules2002.htm

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CentralExciseRules,CBEC

RULE33.Transitionalprovision.Anynotification,circular,instruction,standingorder,tradenoticeorother
orderissuedundertheCentralExcise(No.2)Rules,2001bytheBoard,theChiefCommissionerorthe
CommissionerofCentralExcise,andinforceasonthe28thdayofFebruary,2002,shall,totheextentitisrelevant
andconsistentwiththeserules,bedeemedtobevalidandissuedunderthecorrespondingprovisionsoftheserules.

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