221. Responsibility of a corporate body for making declaration and obtaining
Registration Certificate
221A. Exemption from execution of bonds by Central Government...
222. [Omitted]
223. Stocks of excisable goods to be stored in an orderly manner
223A. Account of stock of goods in a factory or warehouse to be taken and
balance to be struck
223B. Omitted
224. Restrictions on
removal of goods
224A. Cancellation
of Central Excise documents
224B. Duplicates of documents may be granted on payment of fees
224C. Omitted
225. Producer or manufacturer liable for removal of goods by any person
226. Omitted
226A. Electronic maintenance or generation of records, returns and documents
using computer
227. Provision and maintenance of weighing and measuring apparatus
228. Provision and
maintenance of locks
229.
Provision of accommodation at factory or warehouse
230. Goods, plant and machinery chargeable with duty and not paid
231. Matches and excisable tobacco products not to be sold except in prescribed
containers bearing a Central
232. Officer shall not disclose information learned in his official capacity.-
If any officer except in the discharge in good
232A.
Publication of names and other particulars of persons
232B.
Qualifications for authorized representatives
232C. Authority under
section 35Q(5)(b)
233- Power to issue
supplementary instructions
233A. Issue of show cause notice before confiscation of any property or
imposition of any penalty
233B. Procedure to be followed in cases where duty is paid under protest
CHAPTER XIV
MISCELLANEOUS
221. Responsibility of a corporate body for making declaration and
obtaining Registration Certificate .-
- Where any trade or business in respect of which declaration is required
to be made by these rules is carried on by a corporation, the declaration
shall be under the seal of the corporation and signed by the chairman or
some director of the corporation or by its secretary or other principal
officer.
- Any person signing a declaration, and also the corporation under whose
seal the declaration is made, shall be liable for the payment of all duties
charged and to all penalties and confiscations incurred, in respect of the
trade or business to which the declaration relates.
- A declaration in respect of a trade or business carried on by a
corporation shall be treated as being under the seal of the corporation if
it is signed by some person authorised in that behalf by the corporation
under its seal.
221A. Exemption from execution of bonds by Central Government
undertakings and furnishing of security or surety by State Government
undertakings.- Notwithstanding anything contained elsewhere in these
rules, every undertaking owned and managed directly through any Ministry,
Department or Directorate by—
- the Central Government, is exempt from the execution of any bond;
- a State Government, is exempt from furnishing any security or surety or
bond,
where the execution of such bond, or, as the case may be, furnishing of such
security or surety, is required by or under any other provision of these
rules.
Explanation.—For the avoidance of doubts, it is hereby declared that for the
purposes of this rule, an undertaking owned or controlled by the Central
Government or State Government does not include—
- any undertaking belonging to a corporation owned or controlled by
the Central Government or a State Government and established by or under
a Central, Provincial or State Act; or
- any undertaking belonging to a Government company within the meaning
of section 617 of the Companies Act, 1956 (1 of 1956).
222. [Omitted]
223. Stocks of excisable goods to be stored in an orderly manner.-
All
excisable goods stored in the premises of a person registered under these rules
or stored in a public warehouse, whether without or after payment of duty, shall
be stocked in an orderly manner, so as to facilitate their counting and
verification by the Central Excise Officer with reference to Entry Book or
warehouse register.
223A. Account of stock of goods in a factory or warehouse to be taken
and balance to be struck.- As often as the Commissioner may deem it
necessary or proper, the stock of excisable goods remaining in a factory,
warehouse or store-room registered or approved for the storage of such goods
shall be weighed, measured, counted or otherwise ascertained in the presence of
the proper officer; and if the quantity so ascertained is less than the quantity
which ought to be found in such premises (after taking into account receipts and
deliveries, and making such allowance for waste by evaporation, or other natural
causes, as the proper officer may consider reasonable, and as may be in
accordance with any instructions issued by the Central Board of Excise and
Customs) the owner of such goods, or if the premises be a public warehouse, the
keeper thereof, shall, unless the deficiency be accounted for to the
satisfaction of the proper officer be liable to pay the full amount of duty
chargeable on such goods as are found deficient and also a penalty which may
extend to two thousand rupees.
Form:D.D.2
223B. Omitted.
224. Restrictions on removal of goods.-
- Goods , other than those to which the provisions of Chapter VII-A of
these rules apply, may not be delivered from a factory registered under
these rules, or from a warehouse, before six o' clock in the forenoon or
after six o'clock in the afternoon, nor at any hour on Sundays and public
holidays except by permission of the Commissioner, and under such
conditions,and on payment of such fees, as the Commissioner may by general
or special order require.
- Notwithstanding anything contained in these rules, no goods shall be
removed from a factory or warehouse between appointed time and 12.00
(midnight) on the appointed date unless, -
- the assessee has obtained permission of the Commissioner under
sub-rule (2A) of this rule.
- an application for such removal in the Form A.R.1 specified in
Appendix-I to these rules has been presented by the assessee to the
proper officer and such an application has been acknowledged by the
proper officer before 5.00 P.M. on the working day immediately preceding
the appointed date:
Provided that no such application for the removal of goods which may
come into existence at any time after the appointed time shall be
acknowledged under this clause unless the terms, conditions and
limitations imposed by the Commissioner in this behalf are complied
with;
Explanation. - For the purposes of this sub-rule and sub-rule (2A),
"goods" include goods which may come into existence at any time after
the appointed time.
(2A) Where an assessee intends to remove goods from a factory or
warehouse under sub-rule (2), he may make an application in this behalf
in writing to the Commissioner undertaking to pay duty at the enhanced
rate, if any, that may be applicable to such goods with effect from the
date immediately following the appointed date and to comply with such
conditions as the Commissioner may specify and thereupon the
Commissioner may, if he considers it necessary or expedient in the
public interest so to do, permit the removal of such goods.
- No excisable goods shall, in excess of the quota determined in the
manner provided for in sub-rule (4), be removed for home consumption
from a factory registered under these rules or from a warehouse during
any week in such period not exceeding four weeks in a year as the
Central Government may, by notification in the Official Gazette, from
time to time specify:
Provided that the Central Government may, if it is satisfied that it is
necessary or expedient in public interest so to do, permit, by general
or special order, any assessee or class of assessees-to remove, subject
to such conditions as it may specify, such goods for home consumption in
excess of the said quota from the factory or, as the case may be, from
the warehouse.
- The quota referred to in sub-rule (3) shall, in a case where
excisable goods are liable to duty—
- at a rate dependent on the value thereof, be one hundred and twenty
per cent of the weekly average value of such goods;
- with reference to the quantity thereof, be one hundred and twenty
per cent of the weekly average quantity of such goods,
removed for home consumption from the factory or, as the case may be,
from the warehouse, during the twelve months immediately preceding the
month in which the removal of such goods is subject to the provisions of
sub-rule (3); and if, in any case the quota is not determinable in the
aforesaid manner, it shall be determined by the Commissioner in such
manner as he may deem fit.
- For the purposes of sub-rules (3) and (4)— (i) the expression
"excisable goods" shall include—
- goods initially removed from the factory or warehouse for being
warehoused or for being exported under bond, but subsequently diverted
for home consumption on payment of duty; and
- goods manufactured prior to the imposition of duty thereon and
removed without payment of duty from the factory during the period of
twelve months referred to in sub-rule (4);
(ii) the expression "twelve months" shall mean—
- in the case where a factory starts production or manufacture of
excisable goods or a warehouse is established for lodging excisable
goods, for the first time during the twelve months preceding the month
in which the removal of such goods is subject to the provisions of
sub-rule (3), the number of complete weeks commencing from the date of
production or from the date of establishment of the warehouse, as the
case may be, and ending on the day before the first day of such month;
- in a case where a factory is closed on account of any lockout or
strike during the period of twelve months referred to in sub-clause (a),
fifty-two weeks less the number of completed weeks of such lockout and
strikes; and
- in any other case, fifty-two weeks.
- The Central Government may, if it is satisfied that it is necessary
or expedient in public interest so to do, relax, by general or special
order, the provisions of sub-rules (1), (2) and (2A) and the provisions
of clause (iv) of sub-rule (2) of rule 173G, subject to such conditions
as it may specify in such order.
224A. Cancellation of Central Excise documents.- Where goods in respect
of which an application for clearance or removal has been made under
rules 52,158 or 185, are not cleared or removed within ten days of the
proper officer's completing,—
- in the case of clearances for home consumption, the assessment
memorandum; and
- in the case of removal from one warehouse to another or for export,
the examination or check-weighment;
the goods shall be liable to re-examination or re-weighment before the
proper officer allows clearance or removal thereof:
Provided that if the applicant does not require such clearance of
removal he shall apply in writing to the proper officer for cancellation
of the application therefor and shall, unless the applicant shows to the
satisfaction of such officer that the application had to be cancelled
due to circumstances beyond his control, pay a fee of rupee one only for
every such application, and thereupon the duty, if any, paid by the
applicant shall be refunded:
Provided further that no application for clearance for home consumption
presented at any time before the date appointed for the presentation of
the annual budget of the Central Government to Parliament shall be
cancelled without the prior approval of the Central Board of Excise and
Customs , if a request in respect of the cancellation for such
application is received after 5.00 P.M. on that date.
224B. Duplicates of documents may be granted on payment of fees.-
A
duplicate of any certificate, registration certificate , transport
permit or other document issued to any person may, at the discretion of
the proper officer on payment of a fee of rupees thirty be furnished to
such person, if the proper officer is satisfied that no fraud has been
committed or is intended by the applicant.
224C. Omitted
225. Producer or manufacturer liable for removal of goods by any
person.- If any excisable goods are, in contravention of any condition
prescribed in these rules, removed by any person from the place where
they are produced, manufactured or warehoused, the producer or
manufacturer or the registered person or keeper of the warehouse shall
be held responsible for such removal, and shall be liable to be dealt
with according to the provisions of the Act or the rules as if he had
removed the goods himself.
226. Omitted
226A. Electronic maintenance or generation of records, returns and
documents using computer.-
- Any person may electronically maintain or
generate all or many of the records, returns, invoices and other
documents prescribed under these rules, using a computer, in
electronically readable format:
Provided that-
- printouts of each record and document are taken at the end of each
calendar month;
- printouts of such records, returns, and documents, and copies of
invoices, are kept in bound folder;
- each page of the record bears a running serial number and name and
address of the person;
- The Assistant Commissioner of Central Excise or Deputy Commissioner
of Central Excise may, for reasons to be recordee in writing, prohibit
any person from maintaining or generating any records, returns, invoices
or other documents in the manner prescribed under sub-rule (1) above.
227. Provision and maintenance of weighing and measuring apparatus.-
- Every person registered to deal in excisable goods shall render all
necessary assistance to officers in taking account of such goods in his
possession and shall, where so required by the Commissioner by written
order, provide sufficient and just scales and weights, or a correct
weighing machine, capable of weighing the largest package of such goods
which may be packed on his premises and, where necessary, a set of
standard measures, for the purpose of weighing, measuring and taking an
account of the goods in his warehouse, stock or possession, and of any
vessel used for the purpose of containing any such goods.
- [Omitted]
- [Omitted]
- [Omitted]
- For any refusal or neglect on the part of a registered dealer to
comply with any of the provisions of this rule he shall be liable to a
penalty which may extend to one thousand rupees.
228. Provision and maintenance of locks.-
- Where any warehouse, room,
place, vessel, or fitting belonging to any person registered to deal in
excisable goods is by these rules, or by any general or special order of
the Central Board of Excise and Customs, or of the Commissioner,
directed to be secured or locked, the registered person and, in the case
of a public warehouse, the warehouse keeper, shall, to the satisfaction
of the proper officer, provide, affix, repair and renew all fastenings
requisite for the purpose of enabling officers to affix locks thereto or
otherwise to secure them.
- If the registered person or warehouse-keeper fails so to do, the
proper officer may provide, affix, repair, or renew the fastenings, and
the expense thereof shall be paid on demand by the registered person or
warehouse-keeper, as the case may be.
- All requisite locks or keys shall be provided by the Central
Government at the expense of the Revenue.
- If any registered person or warehouse-keeper fails on demand to pay
the expense of providing, affixing, repairing or renewing fastenings, as
prescribed in sub-rule (2), or if any registered person or
warehouse-keeper or his servant or workman, wilfully destroys or damages
any such fastening, or any lock or key belonging thereto, or any lock
label, or improperly obtains access into any warehouse, room, place,
vessel, or fitting, or has any fastening, vessel or fittings so
constructed that the security intended to be obtained by any lock or
fastening may be defeated, the registered person or warehouse-keeper
shall be liable to a penalty which may extend to two thousand rupees.
229. Provision of accommodation at factory or warehouse.-
- Every
person manufacturing or storing goods on which excise duty is to be
levied shall provide and maintain to the satisfaction of the
Commissioner, for the use of the officers in attendance at the factory
or warehouse, furniture and sufficient and proper accommodation and
sanitary accommodation within the factory or warehouse premises; and
every manufacturer of excisable goods shall, where so required by the
Commissioner, provide suitable lodging conveniently situated to the
factory premises at a rent not exceeding ten per cent of the pay of each
officer so accommodated:
Provided that where the limit of rent specified above for such lodging
falls short of the rent prevailing in the area the rent payable may be
increased by an amount not exceeding Rs. 20 in each case.
- A breach of this rule shall be punishable with a penalty which may
extend to one thousand rupees.
230. Goods, plant and machinery chargeable with duty and not paid.-
- When the duty leviable on any goods is owing from or by any person
carrying on trade or business, whether as a producer, manufacturer or as
dealer in such goods, all excisable goods, and all materials and
preparations, from which any such goods are made, and all plant,
machinery, vessels, utensils, implements and articles for making or
manufacturing or producing any such goods, or preparing any materials,
or by which the trade or business is carried on, in the custody or
possession of the person carrying on such trade or business, or in the
custody or possession of any agent or other person in trust for or for
the use of the person carrying on such trade or business, may be
detained for the purpose of exacting such duty; and any officer duly
authorised by general or special order of the Central Board of Excise
and Customs or the Commissioner may detain such goods, materials,
preparations, plant, machinery, vessels, utensils and articles until
such duties or any sums recoverable in lieu thereof are paid or
recovered.
- Where any such person transfers or otherwise disposes of his
business in whole or in part, or effects any change in the ownership
thereof, in consequence of which he is succeeded in the business or
trade or part thereof by any other person or persons, all excisable
goods, materials, preparations, plant, machinery, vessels, utensils,
implements and articles in the custody or possession of the person or
persons succeeding may also be detained for the purpose of exacting duty
due from the producer, manufacturer or dealer up to the time of such
transfer, disposal or change, whether such duty has been assessed before
such transfer, disposal or change, but has remained unpaid, or is
assessed thereafter.
231. Matches and excisable tobacco products not to be sold except in
prescribed containers bearing a Central Excise Stamp or label.- Save as
otherwise provided by these rules, if any matches or excisable tobacco
products are found in the possession of any dealer in or retailer of
such goods, not being affixed with Central Excise Stamp , wrapped or labelled as hereinbefore prescribed or of which the Central Excise Stamp
, wrapper or label is cut or torn, or the wrapper or other container
bears any other mark or appearance of having been opened or tampered
with, such goods shall be liable to confiscation and such dealer or
retailer shall be liable to a penalty which may extend to one thousand
rupees.
232. Officer shall not disclose information learned in his official
capacity.- If any officer except in the discharge in good faith of his
duty as such officer or in pursuance of such special or general
directions as may be issued by the Central Board of Excise and Customs,
discloses any particulars learned by him in his official capacity in
respect of any goods, he shall be liable to a penalty not exceeding one
thousand rupees.
232A. Publication of names and other particulars of persons.-
- Subject to the provisions of sub-rule (5), the Commissioner shall, once
in every three months, cause to be published in the Official Gazette the
names and addresses and other particulars specified in sub-rule (2), of
the following categories of persons, namely:—
- persons who have been convicted by a court under section 9 of the
Act;
- persons who have been found by an officer referred to in section 33
of the Act to have contravened any of the provisions of the Act or rules
made thereunder and on whom a penalty of ten thousand rupees or more has
been imposed by such officer.
- The other particulars referred to in sub-rule (1) are:—
- the provisions of the Act or rules made thereunder contravened;
- the amount of penalty imposed;
- the value of excisable goods or other property ordered to be
forfeited by a court under section 10 of the Act or adjudged by the
officer referred to in section 33 to be confiscated;
- amount of fine in lieu of confiscation, if any, imposed under
section 34 of the Act;
- particulars of any registration certificate revoked under rule 181.
Explanation.—In the case of a firm, company or other association of
persons, the names of the partners of the firm, directors, managing
agents, secretaries and treasurers or managers of the company, or the
members of the association, as the case may be, may also be published
if, in the opinion of the Commissioner, the circumstances of the case
justify such publication.
- Notwithstanding anything contained in sub-rule (1), the Central
Government may, if it is satisfied that it is necessary or expedient so
to do, direct the Commissioner to publish the names, addresses and other
particulars specified in sub-rule (2) of any other person who has been
found guilty of contravention of the Act or of any rule made thereunder.
- Notwithstanding anything contained in this rule, the Central
Government may, if it is satisfied that it is necessary or expedient in
the interest of investigations under the Act, security of State or
friendly relations with foreign States or otherwise in the interest of
general public, so to do, direct the Commissioner that names of any
persons may not be published.
- No publication under sub-rule (1) shall be made in respect of a
person until the period for preferring an appeal under section 35 of the
Act or to the first Appellate Court has expired without an appeal having
been preferred or such appeal having been filed, has been disposed of.
232B. Qualifications for authorized representatives.-
For the purposes
of clause (c) of sub-section (2) of section 35Q , an authorized
representative shall include a person who has acquired any of the
following qualifications namely:—
- a Chartered Accountant within the meaning of the Chartered
Accountants Act, 1949 (38 of 1949); or
- a Cost Accountant within the meaning of the Cost and Works
Accountants Act, 1959 (23 of 1959); or
- a Company Secretary within the meaning of the Company Secretaries
Act, 1980 (56 of 1980) who has obtained a certificate of practice under
section 6 of that Act; or
- a post-graduate or an Honours degree holder in Commerce or a
post-graduate degree or diploma holder in Business Administration from
any recognised university; or
- a person formerly employed in the Department of Customs and Central
Excise or Narcotics and has retired or resigned from such employment
after having rendered service in any capacity in one or more of the said
departments for not less than ten years in the aggregate.
Explanation.—In this rule "recognised University" means any of the
Universities specified below, namely:—
- Indian Universities
Any Indian University incorporated under any law for the time being in
force in India;
- Rangoon University;
- English and Welsh Universities
The Universities of Birmingham, Bristol, Cambridge, Durham, Leeds,
Liverpool, London, Manchester, Oxford, Reading, Sheffield and Wales;
- Scottish Universities
The Universities of Aberdeen, Edinburgh, Glasgow and St. Andrews;
- Irish Universities
The Universities of Dublin (Trinity College), the Queen's University,
Belfast and the National University of Dublin;
- Pakistan Universities
Any Pakistan University incorporated by any law for the time being in
force;
- Bangladesh Universities
Any Bangladesh University incorporated by any law for the time being in
force.
232C. Authority under section 35Q(5)(b).- The Commissioner of Central
Excise having jurisdiction in the proceedings in which a person who is
not a legal practitioner is found guilty of misconduct in connection
with that proceeding under the Act shall be the authority for the
purposes of clause (b) of sub-section (5) of section 35Q.
233- Power to issue supplementary instructions.-
The Central Board of
Excise and Customs Chief Commissioners and Commissioners, may issue
written instructions providing for any supplemental matters arising out
of these rules.
233A. Issue of show cause notice before confiscation of any property or
imposition of any penalty.- No order confiscating any property, or
imposing any penalty on any person shall be made under these rules,
unless—
- a written notice stating the grounds on which it is proposed to
confiscate such property or to impose such penalty; and
- a reasonable opportunity of making a representation in writing
within such time as may be specified in the notice against the grounds
of confiscation or imposition of penalty mentioned therein and of being
heard in the matter; are given—
- Where the order relates to confiscation of any property, to the
person-in-charge of such property and,
where such person-in-charge is not the owner of such property, also to
the owner thereof; or
- where the order relates to the imposition of any penalty, to the
person on whom such penalty is to be imposed:
Provided that the notice referred to in clause (a) and the
representation referred to in clause (b) may, at the request of the
person or persons concerned, be oral.
233B. Procedure to be followed in cases where duty is paid under
protest.- Where an assessee desires to pay duty under protest he shall
deliver to the proper officer a letter to this effect and give grounds
for payment of the duty under protest.
- On receipt of the said letter, the proper officer shall give an
acknowledgement to it.
- The acknowledgement so given shall, subject to the provisions of
sub-rule (4), be the proof that the assessee has paid the duty under
protest from the day on which the letter of protest was delivered to the
proper officer.
- An endorsement "Duty paid under protest" shall be made on all copies
of the gate pass, the Application for Removal and Form R.T.12 or Form
R.T. 13, as the case may be .
- In cases where the remedy of an appeal or revision is not available
to the assessee against any order or decision which necessitated him to
deposit the duty under protest, he may, within three months of the date
of delivery of the letter of protest, give a detailed representation to
the Assistant Commissioner of Central Excise or Deputy Commissioner of
Central Excise.
- In cases where the remedy of an appeal or revision is available to
the assessee against an order or decision which necessitated him to
deposit the duty under protest, he may file an appeal or revision within
the period specified for filing such appeal or revision, as the case may
be.
- On service of the decision on the representation referred to in
sub-rule (5) or of the appeal or revision referred to in sub-rule (6)
the assessee shall have no right to deposit the duty under protest:
Provided that an assessee shall be allowed to deposit the duty under
protest during the period available to him for filing an appeal or
revision, as the case may be, and during the pendency of such appeal or
revision, as the case may be.
- If any of the provisions of this rule has not been observed, it
shall be deemed that the assessee has paid the duty without protest.
Note:—A letter of protest or a representation under this rule shall not
constitute a claim for refund.
234. Cancellation of former rules, orders and notifications.- The
following rules, orders and notifications are hereby cancelled, namely:—
- The Motor Spirit (Duties) Order, 1917.
- The Kerosene (Duties) Order, 1922.
- The Silver (Excise Duty) Order, 1930.
- The Sugar (Excise Duty) Order, 1934.
- The Matches (Excise Duty) Order, 1934.
- The Mechanical Lighters (Excise Duty) Order, 1934.
- The Steel Ingots (Excise Duty) Order, 1934.
- The Northern India Motor Spirit (Duties) Order, 1938.
- The Northern India Kerosene (Duties) Order, 1938.
- The Northern India Sugar (Excise Duty) Order, 1938.
- The Northern India Matches (Excise Duty) Order, 1938.
- The Northern India Mechanical Lighters (Excise Duty) Order, 1938.
- The Northern India Steel Ingots (Excise Duty) Order, 1938.
- The Northern India Silver (Excise Duty) Order, 1938.
- The Bombay Sugar (Excise Duty) Supplementary Order, 1938.
- The Madras Sugar (Excise Duty) Supplementary Order, 1938.
- The Northern India Matches (Excise Duty) Supplementary Order, 1938.
- The Bombay Matches (Excise Duty) Supplementary Order, 1938.
- The Madras Matches (Excise Duty) Supplementary Order, 1938.
- The Motor Spirit and Kerosene Export (Nepal) Rules, 1939.
- The Sugar Export (Afghanistan) Rules, 1939.
- The Motor Spirit and Kerosene Export (Kashmir) Rules, 1940.
- The Motor Spirit and Kerosene Export (Afghanistan) Rules, 1940.
- The Tyres (Excise Duty) Order, 1941.
- The Sugar Export (Confectionery) Rules, 1941.
- The Matches Export (Afghanistan) Rules, 1941.
- The Tyres Export (Afghanistan and Nepal) Rules, 1941.
- The Sugar Exports (Iran) Rules, 1942.
- The Tobacco (Excise Duty) Rules, 1943.
- The Vegetable Product (Excise Duty) Rules, 1943.
- The notifications of the Government of India in Finance Department
(C.R.)
- No. 13-Customs dated 12th April, 1930.
- No. 5-Exc., dated 3rd May, 1934.
- No. 13-Exc., dated 30th June, 1934.
- No. 7-Exc., dated 1st March, 1941.
- No. 67-Exc., dated27th September, 1941.
- No. 32-Exc., dated 18th September, 1943.
- No. 33-Exc., dated 18th September, 1943.