OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX:

MUMBAI-III, VARDAAN TRADE CENTRE, 4TH FLOOR, MIDC,

WAGLE INDUSTRIAL ESTATE, THANE (WEST) – 400604

 

TRADE NOTICE NO._4/C.EX./M-III/2004/dated 22.01.2004

 

Subject: - Special procedure for removal of excisable goods for carrying out tests.

 

Attention of the trade and industry is invited to the amendment by way of insertion of Rule 16C in the Central Excise Rules, 2002 vide notification no.
01/2004 C.E.(NT) dt. 08.01.2004, under which a provision has been made for              removal of goods for semi-finished goods for certain purposes.

As per the said new rule, the Commissioner of Central Excise may by special order and subject to conditions as may be specified by The Commissioner of Central Excise may, by special order and subject to such conditions as may be specified by the Commissioner of Central Excise, permit a manufacturer to remove excisable goods manufactured in his factory for carrying out tests 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:

(A) The procedure for the movement of excisable goods for carrying out tests and its return to the sender.

1.                                     The subject goods, other than goods covered under Rule 4(5) of the Cenvat Credit Rules, 2002, would be allowed to be moved out subject to the conditions that the tested goods be returned back to the manufacturer for further use in his factory, within 180 days. Failing which the manufacturer should pay the Central Excise duty attributable to such tested goods. The manufacturer could take the credit of the said duty again when such tested goods are being received back in his factory.

2.                                     Details of such goods being sent out and the particulars of the processors to whom these are being sent for processing, be duly intimated to the jurisdictional Deputy/Assistant Commissioner in advance in the prescribed form, with a copy endorsed to jurisdictional Range Superintendent (as Annexure-I) and dated acknowledgement be obtained. Thereafter the return of such tested goods also be intimated to the jurisdictional Range Superintendent.

3.                                     The to and fro movement would be under the cover of separate series of challans (to be prepared in triplicate) in the format and as per colour scheme as indicated in Annexure-II to this trade notice. The challans should be serially machine numbered for each financial year and the serial nos. of such challans should be intimated to the Superintendent of Central Excise having jurisdiction, before the same being put to use. Such challans shouldl also be pre-authenticated by the owner or his authorised representative, as per Rule, 11(5) & (6) of the Central Excise Rules, 2002

4.                                     Such inputs are to be duly accounted for in a separate register (proforma given in Annexure III) and should be made available for inspection on demand by visiting officers/audit parties.

5.                                     An account of the waste/scrap generated during the course of such testing at the processor’s end should be maintained and such waste / scrap should either be brought back to the factory of the manufacture or cleared on payment of appropriate duty from the processor’s premises.

(B) The procedure for the movement of excisable goods for carrying out tests and its removal from the processor’s end (a registered premises) on payment of appropriate Central Excise duty or for export.

The manufacturer of such goods who intends to send the finished /tested goods directly from the premises of the processors for home consumption or export, during a financial year, would be required to file an application, requesting permission with Commissioner Central Excise, Mumbai-III giving details such as description of such goods, name & address with Central Excise Registration no. of the processors, as detailed in Annexure-I alongwith the details of the reason of such request.

On being permitted, the assessee to follow the following procedure:

1.                                     The movement of the goods from the place of the principal manufacturer to the processor(s) shall be effected against challan, as prescribed in Annexure-II. The challans should be serially machine numbered for each financial year and the serial nos. of such challans should be intimated to the Superintendent of Central Excise having jurisdiction, before the same being put to use and are to be pre-authenticated as per Rule, 11(5) & (6) of the Central Excise Rules, 2002.

2.                                     The aforesaid challans should mention the reference of the permission granted by the Commissioner for the said movement of the goods.

3.                                     The original and duplicate copies of the challans would accompany the goods from principle manufacturer to the processor(s). The triplicate copy of challan should be retained in the challan book of the principle manufacturer and the same should be available at that place for inspection by Central Excise officer.

4.                                     An detail intimation of each clearance with respect to the description of the finished goods, quantity, value and Central Excise duty involved, name and address of the consignee to whom the finally processed goods to be dispatched from the premises of the processor(s) be given to the jurisdictional Deputy/Assistant Commissioner.

5.                                     The processor(s) should return the duplicate copy of challan after completion of the job.

6.                                     The principle manufacturer should prepare the invoice, which will accompany the consignment from the processor(s) premises to the consignee to whom the finally processed goods to be dispatched, on the basis of duplicate copy of such challan received from the processor(s). The / date and time of removal would be filled at the processor(s) end at the time of removal of the such finished processed goods and accordingly, thereafter, .the Central Excise duty would be paid by the principle manufacturer.

7.                                     The principle manufacturer and the processor(s) should maintain movement register in respect of all the transaction effected at both the ends.

8.                                     The proper accounts and records should be maintained at both the ends, covering all the transaction under this permission. The periodical returns/reports should be furnished to the concerned Central Excise officer.

9.                                     Details of each of the clearance from the processor(s) premises should be submitted to the Deputy/Assistant Commissioner, having jurisdiction over the factory of the principle manufacturer after each such clearance.

6.                                     The clearance of such finished goods should be made on payment of appropriate Central Excise duty within 180 days of the goods being sent to the processor(s). Failing which the manufacturer should pay the Central Excise duty attributable to such processed goods. However, the manufacturer could take the credit of the said duty again when the processed goods out of such semi-finished goods are to be dispatched for home consumption on payment of duty or for export.

7.                                     The waste & scrap, if any, arising in the process should be returned to the manufacturer or appropriate duty thereon should be paid by the principle manufacturer.

8.                                     Any other condition that may be imposed by the jurisdictional Deputy/Assistant Commissioner.

All the Trade Associations are requested to bring the contents of this Trade Notice to the notice of their members in particular and the trade in general.

 

 

       (K.K.SHRIVASTAVA)

     COMMISSIONER

     CENTRAL EXCISE: MUMBAI-III

Encl. As above.

 

F.No. V.Gen(8)2/04/M-III

Thane,

Copy to: All Trade Associations as per Mailing List/Member of RAC(OS) & SSI

All Chambers of Commerce/Press Information Bureau.

All  Addl. / Joint  Commissioners / All Divisional Deputy / Assistant Commissioners  (with 10 spare copies) / Deputy Commissioner(Audit) (with 10 spare copies) /P.R.O. (Notice Board)

Chief Commissioner’s Unit, Mumbai Zone – II

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNEXURE I

INTIMATION LETTER GIVING THE DETAILS OF EXCISABLE GOODS FOR TESTING & THE PROCESSORS.

 

Commissionerate: ____________________     
Division: ____________    
Range: ______________

1.      Date of intimation

2.      Name & address of the assessee with Registration no. 
(Semi-finished goods removed by)

3.      Details of the goods for testing (Chapter heading/          
sub-heading of the material)           

4.      Nature of testing/operation to be done (A separate sheet          
may be added if necessary)           

5.      Whether there is any possibility of transit loss (if so quote          
the percentage)

6.      The name, address &Registration no. if any of the person/        
undertaking the above process/operation.           

7.      Description with chapter heading nos. of the resultant    
goods after process.           

8.      Whether the goods after testing are liable to duty.           

9.      Whether the waste or scrap if any arising during the above       
process/operation should be returned to the factory or not?       

10. Whether the finished products arising during the above
process/operation would be returned to the factory or not?        
 
____________________________
Signature of the applicant & status

 

Place: ______________   
Date: ______________

 

 

 

 

 

 

 

 

 

 

 

 

ANNEXURE II

CHALLAN

(For movement of goods under rule 16C of the Central Excise Rules, 2002)

 

Name & address of the manufacturer                                               Sl.No. _______     
(Original: Pink)
(Duplicate: Green)      
(Trplicate: White)

1.      Description of goods

2.      Identification marks & numbers, if any

3.      Quantity (Nos./Weight/Litre/Metre)

4.      Value

5.      Tariff Classification

6.      Date & time of issue

7.      Nature of testing required to be done

8.      Factory / place of processing

9.      Expected duration of processing

 

Place: _________________                              ________________________

Date: _________________                                Signature of manufacturer/  
                                                               authorized signatory

 

To be filled by the testing factory in original & duplicate challans

1.    Date & time of dispatch of finished goods to parent
    factory / another manufacturer & entry No. & date of
    receipt in the account in the processing factory or    

2.    Quantity dispatched (No./weight/Litre/Metre)
    and entered in account 

3.        Nature of processing done

4.        Quantity of waste material returned to the factory or 
 cleared for home consumption. Invoice No. & date
Quantum of duty paid (Both figure & Words)

                  

                                                                                          ______________________

Place: __________                                                             Signature of processor

Date: __________                                                        Name of the factory Address

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNEXURE – III

STOCK REGISTER OF SEMI-FINISHED GOODS SENT FOR TESTING

 

Date of issue

Description of goods
(for testing)

Tariff classification

Quantity removed (Weight/Numbers/Pieces/Units)

Identification marks, if any

Premises/factory to which removed

Challan no. & date

Nature of testing required

Initials of supplier/manufacturer

1

2

3

4

5

6

7

8

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date of clearance of tested goods from factory of tester

Date of receipt of tested goods

Quantity of tested/finished goods received/cleared by the tester (wt./length/pieces/units)

Difference between Cols.
 4 & 12

Quantum of waste material received back/ cleared by the processor

Invoice no. date & particulars of payment of duty

Particulars of payment of duty on shortage/waste if any or their mode of disposal

Initials of the manufacturer

10

11

12

13

14

15

16

17