INDEX

Central Excise Manual

CHAPTER-1				INTRODUCTION
	Part-I		Introduction
		1	Scope of this Manual
		2.	Publishing of Manual and amendments

	Part-II		An Overview of Central Excise
		1.	Brief history and developments
		2.	Administration of Central Excise
		3.	Tax payers' assistance and responsiveness

CHAPTER-2
	Part-I		IntroductionRegistration and E.C.C. Number
		1.	Introduction
		2.	Persons requiring registration
		3.	Exemption from Registration
		4.	Application for Registration
		5.	Filing of Declaration in lieu of registration
		6.	Procedure of Issue of Registration Certificate
		7.	Issue of Registration Certificate.
		8.	Period of Validity of Registration
		9.	Surrender, Cancellation, Suspension or Revocation of Registration
		10.	Lost Registration Certificates

	Part-II		New Excise Control Code [E.C.C. Number]
		1.	Introduction
		2.	Components of New ECC Number
		3.	Procedure for allotment of New ECC

CHAPTER-3			ASSESSMENT, CLASSIFICATION, VALUATION, PROVISIONAL ASSESSMENT, MANNER OF DUTY PAYMENT, ACCOUNT CURRENT, SCRUTINY
	Part-I		Assessment
		1.	Assessment Defined
		2.	Major ingredients of assessment
		3.	Self Assessment
		4.	Date for determination of rate of duty and tariff value

	Part-II		Classification
		1.	Introduction
		2.	Interpretative Rules for classification.
		3.	Powers of the C.B.E.C. to issue orders of classification of goods.

	Part III		Valuation
		1.	Value under the Central Excise Act, 1944
		2.	Transaction Value
		3.	Valuation Rules
		4.	Valuation of Petroleum Products
		5.	Tariff Value
		6.	Value on basis of Maximum Retail Sales Price

	Part IV		Provisional Assessment
		1.	Introduction
		2.	Guidelines and procedure for provisional assessment
		3.	Initiation of Provisional Assessment by Department
		4.	Application of new provisions

	Part V		Manner of payment of duty and Account Current
		1.	Manner of payment of duty
		2.	Account current and procedures relating thereto
		3.	Credit and debit in account current
		4.	Payment of rents, fines or penalties
		5.	Account Code Directory
		6.	Procedure for deposit of Central Excise duties during bank strikes, natural calamities etc.
		7.	Payment by cheque when not permitted .

	Part- VI		Scrutiny of Assessment
		1.	Introduction
		2.	Scrutiny of Assessment

CHAPTER-4			INVOICE SYSTEM
	PART-I
		1.	Introduction
		2.	Removals only on invoice
		3.	Serially numbered invoice
		4.	Number of Invoice copies
		5.	Number of Invoice book
		6.	Authentication of Invoices
		7.	Intimation of serial numbers
		8.	Rounding off of duty in invoice
		9.	Provisions of CENVAT Credit Rules, 2001 regarding availment of credit
		10.	Preparation of invoices when goods dispatched through more than one vehicle because of their size
		11.	Cancellation of invoices

	PART II		TRANSSHIPMENT
		1.	Procedure of Transshipment of goods en route final destination

	PART-III		SPECIAL PROCEDURE FOR REMOVAL OF LIQUID GASES -PASS-OUT SYSTEM
		1.	Special Procedure

CHAPTER-5			CENVAT CREDIT
		1.	Introduction
		2.	Salient features
		3.	Important clarifications

CHAPTER-6			RECORDS AND RETURNS
	PART-I		RECORDS
		1.	Introduction
		2.	Private records

	PART-II		RETURN
		1.	Introduction
		2.	Monthly/Quarterly Return

	PART-III		ELECTRONIC MAINTENANCE OF RECORDS AND PREPARATION OF RETURNS AND DOCUMENTS
		1.	Procedure

CHAPTER 7			EXPORT WITHOUT PAYMENT OF DUTY
	PART-I		GENERAL
		1.	Introduction
		2.	Categories of exports

	PART-II		EXPORT TO ALL COUNTRIES EXCEPT NEPAL AND BHUTAN
		1.	Introduction
		2.	Conditions
		3.	Forms to be used
		4.	Bond Accepting Authority
		5.	Security or surety with bond
		6.	Procedure for clearance from the factory or warehouse
		7.	Sealing of goods and examination at place of despatch
		8.	Distribution of ARE.1 in the case of export from the factory or warehouse
		9.	Distribution of ARE.1 in the case of export from other than factory or warehouse
		10.	Despatch of goods by self-sealing and self-certification
		11.	Export by parcel post
		12.	Examination of goods at the place of export
		13.	Procedure relating proof of export and to re-credit against such proof
		14.	Functioning of Deputy/Assistant Commissioner of Central Excise (Export)

	PART-III		SIMPLIFIED EXPORT PROCEDURE FOR EXEMPTED UNITS
		1.	Introduction
		2.	Filing of declaration
		3.	Documentation
		4.	Proof of Export

	PART-IV		EXPORT TO NEPAL AND BHUTAN WITHOUT PAYMENT OF DUTY
		1.	Introduction
		2.	Places from where goods can be exported
		3.	Forms to be used
		4.	Categories of exports and the conditions and safeguards thereto
		5.	Export Procedure
		6.	Procedure at the Land Customs Station
		7.	Procedure for discharge of bond or the duty liability

	PART-V		MISCELLANEOUS EXPORT PROVISIONS
		1.	Cancellation of export documents
		2.	Re-entry of the goods, cleared for export under bond but not actually exported, in the factory of manufacture.
		3.	Re-import of exported goods for repairs etc. and subsequent re-export
		4.	Entry of goods in another factory of the same manufacturer for consolidation and loading of consignment for export
		5.	Samples of export goods

	PART-VI		MANUFACTURE OF EXPORT GOODS IN BOND
		1.	Introduction
		2.	Conditions and procedures
		3.	Procurement of material
		4.	Removal of materials or partially processed material for processing
		5.	Procedure for export
		6.	Accounts & Returns
		7.	Checks by Customs Officers

CHAPTER-8			EXPORT UNDER CLAIM FOR REBATE
		1.	Introduction
		2.	Categories of exports

	PART-I		EXPORT TO ALL COUNTRIES EXCEPT NEPAL AND BHUTAN
		1.	Export of excisable goods to all countries except Nepal and Bhutan
		2.	Forms to be used
		3.	Procedure for clearance for export
		4.	Sealing of goods and examination at place of despatch
		5.	Distribution of documents (ARE.1)
		6.	Dispatch of goods by self-sealing and self-certification
		7.	Examination of goods at the place of export
		8.	Sanction of claim for rebate by Central Excise
		9.	Export by parcel post
		10.	Filing of rebate claims by electronic declaration and sanction thereof through Electronic Data Inter-change (EDI)

	PART-II		EXPORT TO NEPAL OR BHUTAN
		1.	Introduction
		2.	Conditions of export
		3.	Nepal Invoice
		4.	Procedure for export to Nepal
		5.	Procedure at the land customs station
		6.	Procedure to be followed by the Directorate General of Inspection, Customs and Central Excise (Nepal Refund Wing), New Delhi

	PART-III		SPECIAL PROCEDURE FOR STORE FOR CONSUMPTION ON BOARD AN AIRCRAFT ON FOREIGN RUN
		1.	Introduction
		2.	Conditions of rebate

	PART-IV		MISCELLANEOUS
		1.	Time limit for disposal of Rebate
		2.	Supplementary Rebate Claim
		3.	Entry of goods in another factory of the same manufacturer for consolidation and loading of consignment for export
		4.	Cancellation of documents

	PART-V		EXPORT UNDER CLAIM FOR REBATE OF DUTY ON EXCISABLE MATERIAL USED IN THE MANUFACTURE OF EXPORT GOODS
		1.	Introduction
		2.	Procedures and conditions to be followed
		3.	Verification and grant of permission
		4.	Procurement of material
		5.	Removal of materials or partially processed material for processing
		6.	Procedure for export
		7.	Presentation of claim of rebate
		8.	Communication of deficiency in claim
		9.	Accounts & Returns
		10.	Checks by Customs Officers

	PART-VI		SPECIAL PROCEDURE FOR EXPORT OF TEA UNDER CLAIM OF REBATE
		1.	Introduction
		2.	Procedure

CHAPTER 9			REFUND
		1.	Introduction
		2.	Presentation of refund claim
		3.	Scrutiny of refund claim and sanction
		4.	Payment of refund
		5.	Post Audit
		6.	Monitoring and control for timely disposal of refunds

CHAPTER 10			WAREHOUSING
	PART-I		GENERAL
		1.	Introduction
		2.	Place of registration of warehouse
		3.	Procedure for warehousing of excisable goods removed from a factory or a warehouse
		4.	Failure to receive a warehousing certificate
		5.	Accountal of goods in a warehouse
		6.	Responsibility of the registered person
		7.	Revoked or suspended registration of a warehouse
		8.	Warehouse to store goods belonging to the registered person
		9.	Registered person right to deal with the warehoused goods

	PART-II		EXPORT WAREHOUSING
		1.	Introduction
		2.	Conditions of export warehousing
		3.	Procedure of export warehousing
		4.	Goods supplied by an SSI Unit exempted from Registration
		5.	Clearance of goods for export outside India
		6.	Diversion of goods for home-consumption
		7.	Waiver of physical warehousing in case of exigency
		8.	Providing of accommodation for the Officer

CHAPTER 11			SAMPLES
		1.	Introduction
		2.	Categorization of Samples
		3.	Procedure for the drawl and accounting of Samples
		4.	Quantity of samples
		5.	Test Memo
		6.	Preservation of Samples
		7.	Cost of samples when drawn by the Department
		8.	Procedure for testing and re-testing of samples drawn by the Department
		9.	Clearance of model/proto-type without payment of duty for trial etc.
		10.	Samples drawn at the time of export of goods

CHAPTER 12			SPECIAL PROCEDURE FOR SPECIFIED GOODS
	PART I		STAINLESS STEEL PATTIS/PATTAS, AND ALUMINIUM CIRCLES
		1.	Introduction
		2.	Duty payable under special procedure
		3.	Application to avail special procedure
		4.	Discharge of duty liability on payment of certain sum
		5.	Manufacturer’s declaration and accounts
		6.	Exemption from certain provisions etc.
		7.	Provisions regarding new factories and closed factories
		8.	Power to condone failure to apply for special procedure
		9.	Provision regarding factories ceasing to work or opting for the normal procedure
		10.	Confiscation and penalty

	PART II		EMBROIDERED FABRICS
		1.	Introduction
		2.	Duty payable under special procedure
		3.	Conditions
		4.	Application to avail of special procedure
		5.	Opting out of the special procedure
		6.	Transitional provision
		7.	Discharge of liability for duty on payment of certain sum
		8.	Default in payment of duty
		9.	Manufacturer’s accounts
		10.	Returns and intimations
		11.	Exemption from certain provisions
		12.	Power to condone failure to apply for special procedure
		13.	Confiscation and penalty

	PART-III		COMPOUNDED LEVY ON INDEPENDENT TEXTILE PROCESSORS
		1.	Introduction
		2.	Rate of compounded levy
		3.	Salient features of compounded levy scheme

	PART IV		DUTY ON READYMADE GARMENTS
		1.	Introduction
		2.	Rate of duty
		3.	Salient features of special scheme

	PART V		MATCHES
		1.	Introduction
		2.	Procurement of Central Excise Stamps
		3.	Safety of stamps
		4.	Account of Central Excise Stamps purchased and used
		5.	Time and manner of affixing Central Excise Stamps
		6.	Method of packing
		7.	Disposal of matches and of damaged Central Excise Stamps
		8.	Marking of Matches intended for export
		9.	Removal of matches bearing Central Excise Stamps purchased on credit

CHAPTER 13			DEMAND NOTICE/SHOW CAUSE NOTICE, ADJUDICATION, INTEREST, PENALTY,CONFISCATION, SEIZURE, DUTY PAYMENT UNDER PROTEST
	PART I		DEMAND NOTICE/SHOW CAUSE NOTICE
		1.	Introduction
		2.	Issue of duty demand notice

	PART II		ADJUDICATION
		1.	Introduction
		2.	Adjudication and determination of duty

	PART III		INTEREST, PENALTY, CONFISCATION, DUTY PAYMENT UNDER PROTEST
		1.	Introduction
		2.	Interest on duty
		3.	Penalty and Confiscation
		4.	Duty under protest

CHAPTER 14			BONDS AND LETTER OF UNDERTAKING
		1.	Bonds and Letter of Undertaking
		2.	Types of bonds
		3.	Guidelines for executing bonds
		4.	Bonds for provisional assessment
		5.	Stamps on bond
		6.	Execution of bond by Government Undertaking or Autonomous Corporations
		7.	Security
		8.	Surety
		9.	Guarantee bond executed by bank
		10.	Preservation of bond and retention of securities
		11.	Verification of sureties

CHAPTER 15			EXCISE AUDIT 2000
		1.	Introduction
		2.	What is Excise Audit 2000
		3.	Procedure of Excise Audit
		4.	Conclusion

CHAPTER 16			APPEALS
		1.	Introduction
		2.	Appellate Stages
		3.	Appeals to Commissioner (Appeals)
		4.	Production of additional evidence before Commissioner (Appeals)
		5.	Appeals to Appellate Tribunal
		6.
		7.	Form of application to Appellate Tribunal
		8.	Appeal to Appellate Tribunal against order of Commissioner (Appeals)
		9.	Reference Application
		10.	Procedure for filing Revision Application
		11.	Revision Application
		12.	Form of application to High Court
		13.	Appeal to Supreme Court

CHAPTER 17			SEARCH, SEIZURE, ARREST AND PROSECUTION
	PART I		SEARCH AND SEIZURE
		1.	Introduction
		2.	Provisions relating to search
		3.	Seizure

	PART II		ARREST AND PROSECUTION
		1.	Arrest
		2.	Prosecution

CHAPTER 18			MISCELLANEOUS PROVISIONS
	PART I		REMISSION OF DUTY AND DESTRUCTION OF GOODS
		1.	Remission of duty and Destruction of goods
		2.	Manner of destruction

	PART II		OVER TIME FEE
		1.	Over time Fee

	PART III		RECOVERY OF DUES
		1.	Recovery of dues

	PART IV		RETURN OF DUTY PAID GOODS TO THE FACTORY
		1.	Return of duty paid goods

			ANNEXURES