CENTRAL EXCISE PAYMENT

Presented By: R. Vijay Sai (12213) R. Charan Teja (12208)

AGENDA
Provisions relating to: storage of excisable goods, time and manner of payment of duty, removal of goods.

REMOVAL OF EXCISABLE GOODS

Place of Removal means a factory of the

manufacturer, depot, or branch or godown or consignee place of the manufacturer if he has registered all these places as place of removal with the central excise authorities. NOT Places of Removal
Place of residence of manufacturer Place of dealers of the manufacturer Any other place not registered under Central Excise

Time of Removal means the time at which goods

are removed from the place of removal.

REMOVAL OF EXCISABLE GOODS

No excisable goods, on which any duty is payable,

shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse. Rule 4(1). Where molasses are produced in a khandsari sugar factory, the person who procures such molasses, shall pay the duty. Rule 4(2). Goods produced or manufactured by a job worker may be removed without payment of duty and the duty of on such goods shall be paid by the person on whose account the goods were manufactured or produced Rule 4(3). Commissioner may, in exceptional circumstances

Levy and collection of Excise Duty

Levy means imposition of tax or duty.

Taxable Event for charge of Excise Duty is

manufacture of goods as per Section 3 (1)(a).

UOI v Bombay Tyre International Ltd.
The payment of duty is postponed to stage of removal

of goods (Rule 4). While the liability to pay Excise Duty arises upon production, the duty is payable on removal of goods.

Levy and collection of Excise Duty

Example 1

Product P is produced on 30th November 2012 by X Ltd. On that date, P is not an excisable commodity because it is not named in the Central Excise Tariff. Subsequently, on 8th January, 2013, it is included in the Tariff and taxed at 14%. It removed 6000 kgs of Product P on 2nd January 2013 and another 4000 kgs on 20th January 2013. Is the product excisable?

Levy and collection of Excise Duty

Example 2

Product Q is produced on 30th April 2013 by X Ltd. On that date Q is an excisable commodity with a tariff rate of 8%. Subsequently, on 31st May, 2013 Product Q was removed from the Central Excise Tariff Act. On 20th June 2013, X Ltd sold 50,000 kgs of Product Q that were produced on 30th April 2013. Will these 50,000 kgs be dutiable?

Levy and collection of Excise Duty

Example 3

Product V was produced on 1st May 2013 by X Ltd. On that date, the product attracts 14% rate of duty. On 1st July 2013, there is a notification issued by the Government which states 0% rate for product V. X Ltd. cleared the goods on 31st July 2013 the entire quantity of 1000 units. Is X Ltd, liable to pay excise duty?

Invoice for Removal of Final Products

Excisable goods can be removed from factory or

warehouse only under an Invoice signed by owner or his authorised agent. In case of cigarettes, invoice shall be countersigned by Inspector. [Rule 11 (1)] As per Rule 11 (2), Invoice shall contain:
a. Registration Number b. Address of jurisdictional Central Excise Division c. Name of consignee d. Description and Classification of goods e. Time & Date of Removal

Mode of transport and vehicle registration number g. Rate of duty h. Quantity and Value of goods
f.

Invoice Requirements
Invoice should be serially numbered.

Should be prepared in triplicate [Rule 11(3)]: ORIGINAL FOR BUYER DUPLICATE FOR TRANSPORTER TRIPLICATE FOR ASSESSEE
Only one copy of invoice book shall be used at any time

Rule 11(4). Serial numbers to be informed to Superintendent of Central Excise Rule 11(6) . Rounding up of duty at each invoice not required. Provisions in respect of computerisation of invoices.

Removal of Goods for Export

Preparation of Export Invoice and Form

ARE-1 (Application of Removal of excisable goods for export). Removal of goods under bond without payment of duty against form CT-1 (Certificate of procurement of goods without payment of duty). Exporter to submit ARE-1 forms to customs officer at time of export.

Free Trade Zone or by a 100% Export-Oriented undertaking or by a unit in the SEZ for Domestic Tariff Area
Follow the procedure specified in rule 11 and

debit the account current required to be maintained for this purpose Rule 17(1). The unit shall submit a monthly return to the Superintendent of Central Excise, within ten days from the close of the month to which the return relates Rule 17(3).

Restrictions on Removal of Goods

No goods shall be removed from a factory or a

warehouse between the time appointed for representation of the Annual Budget or any Supplementary Budget of the Central Government in the House of the People or for the introduction in the House of the People of any Finance Bill or any Bill for imposition or increase of any other duty, as the case may be, and 24.00 hours midnight on the day [Rule 17 (1)], unless, the assessee has obtained permission of the

Commissioner an application for such removal in the form prescribed has been acknowledged by him before 17.00 hours on the working day immediately preceding such day
An undertaking in writing to the Commissioner to pay

Other Provisions for Removal of Finished Goods

Provisions in respect of cancelled invoices. Removal of finished goods outside for

weightage. Clearance for carrying out tests or processes. Clearance of samples.

STORAGE OF EXCISABLE GOODS

Rule 4(1) Every person who produces or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty leviable on such goods in the manner provided in rule 8 or under any other law, and no excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse. Hence, storage can be: Inside the place of manufacture (factory), OR Outside the Factory.

PROVISIONS RELATING TO STORAGE

Daily stock account of manufactured goods [Rule 10(1)]. Should contain particulars regarding:
Description of goods manufactured or produced Opening balance Quantity manufactured or produced

Inventory of goods
Quantity removed Assessable value Amount of duty payable Particulars regarding payment of duty

If goods stored in stock room are damaged or

destroyed, remission of duty can be obtained.

PROVISIONS RELATING TO STORAGE

Storage outside the factory without payment of duty: [Rule 4(4)] only in exceptional cases, with regard to:
Nature of goods, or Shortage of storage premises.

Commissioner can permit storage outside the factory He can specify certain conditions.

Storage of inputs outside the factory (Rule 8): If there is a want of space or hazardous nature of goods. Storage point treated as extension of factory.

THANK YOU