TRADE NOTICE No. 05/2013-Central Excise/SH
Dated Shillong the 9th May, 2013.
SUBJECT: POST-REGISTRATION VERIFICATION OF THE FACTORY PREMISES AND VISIT TO THE UNITS PAYING CENTRAL EXCISE DUTY @ 1% ADVALOREM.
Attention of the Members of Trade, Industry and all concerned are hereby invited to the DOF No. B-1/3/2011 – TRU dated 25/3/2011 issued by the Joint Secretary (TRU-1) after the presentation of the budget 2011-12, clarifying on the representations received from Industry/Trade Associations and Chambers of Commerce wherein the following changes have been made with respect to levy of 1% excise duty on 130 items which were fully exempt till 1st March 2011 (at present 2% ad volorem vide Notification No. 16/2012-Central Excise, dated 17.03.2012) vide Para 4.1:
(i) Out of the 130 items covered under Notification 1/2011-CE dated 01.03.2011, 35 items have been notified under section 4A of the Central Excise Act, 1944 with an abatement of 35%. Notification No. 11/2011-CE (NT) dated 24th March, 2011 refers. The excise duty (and CVD) on these goods will thus be charged on the assessable value determined under section 4A.
(ii) Since units that exclusively manufacture items attracting the duty of 1% are neither allowed to take Cenvat credit nor to pass it on to their buyers, a simplified procedure is being prescribed for them so that physical interface with them is minimized and the levy does not pose a compliance burden on them. The salient features of this are as under:
a. Waste, scrap and parings arising in the course of manufacture of items subject to the 1% levy have been fully exempted. The benefit of this exemption is available only to units that exclusively manufacture these items. Notification No. 27/2011-CE dated 24th March, 2011 refers. The benefit of this exemption is also available to units exclusively manufacturing mobile handsets including cellular phones.
b. Post- registration verification of the factory premises shall not be required for such units.
c. Visits to such units should not be required in the normal course. If at all the need arises, the officer visiting them should do so only with the prior authorization of the Assistant Commissioner or the Deputy Commissioner Central Excise of the jurisdictional division. The authorization should be shown to the assessee and his signatures obtained on it at the time of the visit. These instructions may be disseminated to the field formations for strict compliance.
d. Facility of quarterly returns has been prescribed for these units. Notification No. 8/2011-CE (NT) dated 24th March, 2011 refers.
Authority: DOF No. B-1/3/2011 – TRU Dated 25/3/2011
Disclaimer: Though care has been taken to reproduce the text in its original form, in case of any inadvertent mistake, the above mentioned DOF may be referred to.